Netflix, Inc. (NASDAQ:NFLX) Given Average Recommendation of “Moderate Buy” by Brokerages

Shares of Netflix, Inc. (NASDAQ:NFLX) have earned an average recommendation of “Moderate Buy” from the fifty-two ratings firms that are presently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, sixteen have issued a hold rating, thirty-three have given a buy rating and two have assigned a strong buy rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $114.2634.

Several equities analysts have commented on NFLX shares. Morgan Stanley reissued an “overweight” rating on shares of Netflix in a research note on Friday, April 17th. Arete Research upgraded shares of Netflix from a “neutral” rating to a “buy” rating in a research report on Friday, February 27th. Wolfe Research restated an “outperform” rating and set a $107.00 price objective on shares of Netflix in a research report on Friday, April 17th. DZ Bank restated a “buy” rating on shares of Netflix in a research report on Friday, April 17th. Finally, The Goldman Sachs Group lowered shares of Netflix from a “neutral” rating to an “underweight” rating in a research report on Thursday, June 18th.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is expanding beyond streaming with a new original horror game, Unhinged, and other gaming-focused releases, which could open a new engagement and monetization avenue. Article: Netflix Unveils New Horror Game to Jumpstart Interactive Offerings
• Positive Sentiment: Omnicom’s AI advertising collaboration with Netflix highlights progress in the company’s ad-supported strategy and could improve ad targeting, measurement, and revenue growth. Article: Netflix Struggles to Shift the Narrative After Warner Bros. Fiasco
• Positive Sentiment: Some commentators argue the stock looks oversold after the plunge, with bullish articles pointing to Netflix’s valuation, cash flow, and long-term growth potential. Article: 4 Reasons Netflix Stock Is a Must-Own Now After the Plunge
• Neutral Sentiment: Analysts and market commentary continue to debate whether Netflix can replace slowing momentum from hits like Stranger Things and Squid Game with new drivers such as live sports, gaming, and ads. Article: Netflix Stock Plunges To 20-Month Low: Can Live Sports Replace Stranger Things And Squid Game?
• Negative Sentiment: Investor concern is rising that Netflix may be getting more aggressive on acquisitions after the failed Warner Bros. Discovery deal, which is weighing on the stock. Article: Netflix is growing but its stock price is shrinking, as the specter of M&A spooks investors
• Negative Sentiment: Reports that Netflix’s share of streaming time is declining and that competitors are gaining strength are adding to worries about slower audience growth and tougher competition. Article: Netflix’s (NFLX) Share of People’s Streaming Time Declines, Further Pressuring the Stock

Netflix Stock Down 1.4%

Netflix stock opened at $71.84 on Thursday. The stock has a market cap of $302.49 billion, a price-to-earnings ratio of 23.20, a PEG ratio of 0.93 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The company’s 50-day moving average price is $87.07 and its two-hundred day moving average price is $89.31. Netflix has a 52 week low of $71.63 and a 52 week high of $134.12.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. Netflix’s quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter last year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, analysts expect that Netflix will post 3.6 EPS for the current fiscal year.

Insider Activity at Netflix

In other news, Director Reed Hastings sold 420,550 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at approximately $376,230.60. This trade represents a 99.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the transaction, the chief executive officer owned 284,804 shares of the company’s stock, valued at approximately $25,054,207.88. The trade was a 8.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 1,349,019 shares of company stock worth $123,105,721. Company insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Redwood Investment Management LLC boosted its holdings in shares of Netflix by 15.3% in the first quarter. Redwood Investment Management LLC now owns 8,454 shares of the Internet television network’s stock worth $813,000 after buying an additional 1,123 shares during the period. Militia Capital Management LLC acquired a new position in shares of Netflix in the first quarter worth about $590,000. FAS Wealth Partners Inc. boosted its holdings in shares of Netflix by 2.7% in the first quarter. FAS Wealth Partners Inc. now owns 12,140 shares of the Internet television network’s stock worth $1,167,000 after buying an additional 320 shares during the period. Rathbones Group PLC boosted its holdings in shares of Netflix by 53.7% in the first quarter. Rathbones Group PLC now owns 1,266,693 shares of the Internet television network’s stock worth $121,793,000 after buying an additional 442,520 shares during the period. Finally, Robinswood Financial LLC acquired a new position in shares of Netflix in the first quarter worth about $62,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.