NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report is splitting its stock in hopes of becoming as much a standard part of investor portfolio as they are in household entertainment. 

Shares of Los Gatos, Calif-based Netflix were gaining 2.7% in after-hours trading on Tuesday after announcing a seven-for-one stock split payable to shareholders as of July 2. The stock has surged 99% in 2015 to $681.19, and 9.5% over the past month, in anticipation of the move.

By splitting its stock, the subscription video-streaming service, which counts more than 59 million subscribers worldwide, aimed to become more "accessible" to investors, according to an April letter to shareholders. Many retail investors have been put off by Netflix shares at it current price level. A lower price is likely to attract a wider pool of investors.

Regardless of the real price of Netflix shares, valuation on a price-to-earnings basis remains high at 173 — well above the S&P 500I:GSPC of 18.5.

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In a proxy statement from Netflix in April, the company asked shareholders to approve authorization to issue 5 billion shares, compared to the company's current authorization to issue 170 million, an almost 30-1 split.

--With reporting by Seth Archer.

TheStreet Ratings team rates NETFLIX INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and premium valuation."

You can view the full analysis from the report here: NFLX Ratings Report