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A Glance at Netflix’s Stock in Early October 2015

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Shareholder returns and stock trends

As of October 7, 2015, Netflix (NFLX) has generated returns of 62.08% in the TTM (trailing twelve months) and 13.85% in the trailing one-month period. In comparison, it generated -7.21% in returns in 2014 and 121.58% YTD (year-to-date) returns.

Peer companies like Amazon.com (AMZN) and Time Warner Cable (TWC) have generated returns of 4.71% and -2.30%, respectively, in the trailing one-month period.

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Moving averages

On October 7, 2015, Netflix closed the trading day at $108.10. Based on this figure, here’s how its stock fared in terms of its moving averages:

  • 5.06% above its 100-day moving average of $102.62
  • 0.91% below its 50-day moving average of $109.04
  • 5.29% above its 20-day moving average of $102.32

MACD and RSI

A company’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. On October 7, 2015, Netflix’s 14-day MACD was -0.97. This shows a downward trading trend because the figure is positive.

The 14-day RSI (relative strength index) for Netflix on the same day was 55, which shows that the stock is slightly overbought. Generally, if a firm’s RSI is above 70, its stock is overbought. In contrast, if its RSI figure is below 30, it suggests that the firm’s stock has been oversold.

Analyst recommendations

Out of 45 analysts covering the stock, 23 have issued “buy” recommendations, six have issued “sell” recommendations, and 16 have issued “hold” recommendations. The analyst stock price target for the firm is $117.42 with a median target estimate of $120. This means that Netflix is trading at a discount of 10% with respect to its median target.

You can get diversified exposure to Netflix by investing in the SPDR S&P 500 ETF (SPY) and the PowerShares QQQ Trust Series 1 ETF (QQQ). These two funds have 0.27% and 0.95%, respectively, of their holdings in the company’s stock.

In the next part of this series, we’ll shift our focus toward Amazon and its related collaboration with Accenture.

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