Q2 STOCKS TO BUY

Netflix Stock Higher After Appointing Black Executive

The equity is up 43% year-over-year

Digital Content Manager
Jul 1, 2020 at 10:47 AM
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The shares of Netflix Inc (NASDAQ: NFLX) are up 1.9% at $463.91 this morning, after the streaming giant announced Tuesday night it named Bozoma Saint John as its chief marketing officer, adding a high-profile Black executive to its senior management team. Saint John, who has been vocal about inequality in corporate America, has previously worked at Apple (AAPL) and Uber Technologies (UBER). The executive joins at a time representation has become increasingly important in the U.S., and companies look to diversify the workplace.

On the charts, the equity has swiftly recovered from a drop to the $290 level in mid-March. Since then, Netflix shares have been breaking all-time-highs on a monthly basis, with a new record of $474.01 on June 23. Meanwhile, the 60-day moving average has served as a strong level of support since April, containing the stock's pullbacks in May and June. Year-to-date, NFLX is up 43%.

Analysts are majorly optimistic toward the equity, with 20 of the 30 in coverage calling it a "buy" or better, and the remaining 10 calling it a "hold" or worse. As it stands though, the consensus 12-month price target of $456.42 is only a 1.14% discount to current levels, meaning there could be room for NFLX price-target hikes in the near future.

In the options pits, the stock's current call/put volume ratio of 1.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 77th percentile of its annual range, underscoring a healthier-than-usual appetite for calls in the last 10 days. Echoing this is the security's Schaeffer's put/call open interest ratio (SOIR) of 0.87, which ranks in the low 24th percentile of readings from the past year -- highlighting a strong appetite for calls among short-term speculators.

 
 

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