Streaming giant Netflix (NASDAQ:NFLX) has pulled back from its recent Dec. 11 record high of $941.75, last seen down 0.3% at $879.32 and headed for its seventh loss in the last eight days. The shares are still up 81.2% year over year, however, and could soon bounce back from their short-term drop.
Per Schaeffer’s Senior Quantitative Analyst Rock White, NFLX is within striking distance of its 50-day moving average after a lengthy period above it (defined by White as 80% of the time over the past two months and 8 of the last 10 trading days). The stock has seen eight similar signals over the past three years, after which it was higher one month later 63% of the time with an average 4.6% gain.
There is plenty of room for upgrades that could give the stock a boost, as 17 of the 31 analysts in coverage carry a “hold” or worse rating. Plus, the 12-month consensus price target of $858.29 is still a slight discount to current levels, which could bring price-target hikes.
A shift in the options pits could provide tailwinds as well, as options traders have been more bearish than usual. This is per NFLX’s 10-day put/call volume ratio of 1.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 97% of readings from the past year.
Options look like a good way to go when weighing in on Netflix stock, per its Schaeffer’s Volatility Index (SV) of 27% that ranks in the 9th percentile of its annual range, meaning options traders are pricing in low volatility expectations.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
