Netflix (NASDAQ:NFLX) Trading 4.7% Higher – What’s Next?

Netflix, Inc. (NASDAQ:NFLX) traded up 4.7% on Thursday . The stock traded as high as $78.44 and last traded at $77.65. Approximately 54,443,650 shares were traded during mid-day trading, an increase of 20% from the average session volume of 45,424,070 shares. The stock had previously closed at $74.19.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is outperforming a weak tech market, with investors treating the stock as a defensive relative winner on a risk-off day. Netflix Stock Defies Tech Sell-Off Thursday: Whats Going On?
• Positive Sentiment: Buyers are stepping in because Netflix’s lower valuation, ongoing ad-tier growth, and recent selloff have made the shares look more attractive to value-oriented investors. NFLX Stock Climbs 3.95% as Valuation and Ad Growth Lift Demand Now
• Positive Sentiment: Bulls are also focusing on fundamentals: Netflix revenue is at record levels, the ad-supported tier is gaining traction, and management’s $25 billion buyback authorization signals confidence in the stock’s long-term value. Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care
• Neutral Sentiment: Several recent articles argue Netflix is approaching a potential turnaround zone after becoming deeply oversold technically, but this is still a thesis rather than a confirmed reversal.
• Neutral Sentiment: There is renewed speculation that a media deal involving NBCUniversal and Netflix could emerge, but the market appears to be treating that as a longer-shot catalyst rather than a current driver. Comcast Spinoff Could Rejuvenate Its Depressed Stock
• Negative Sentiment: Some commentary still warns the stock could be a bull trap, reflecting lingering skepticism after a large multi-month pullback and ongoing debate over whether the recovery is sustainable.

Analysts Set New Price Targets

Several research firms recently issued reports on NFLX. Wells Fargo & Company started coverage on Netflix in a report on Monday, March 9th. They set an “equal weight” rating and a $105.00 target price on the stock. Oppenheimer set a $120.00 price target on Netflix and gave the stock an “outperform” rating in a research report on Friday, April 17th. Bank of America reiterated a “buy” rating and set a $125.00 price objective on shares of Netflix in a research note on Monday, May 18th. Barclays set a $110.00 price objective on Netflix and gave the company an “equal weight” rating in a report on Friday, April 17th. Finally, JPMorgan Chase & Co. reissued a “buy” rating on shares of Netflix in a research note on Wednesday, April 22nd. Two analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Netflix presently has an average rating of “Moderate Buy” and an average price target of $114.26.

Netflix Trading Up 4.7%

The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The business has a 50-day simple moving average of $84.07 and a two-hundred day simple moving average of $88.49. The stock has a market cap of $326.97 billion, a price-to-earnings ratio of 25.08, a P/E/G ratio of 0.91 and a beta of 1.52.

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

Insider Activity

In other news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares of the company’s stock, valued at $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the sale, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $10,725,370.39. The trade was a 18.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 899,839 shares of company stock valued at $80,141,661. 1.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Netflix

A number of large investors have recently made changes to their positions in NFLX. Checchi Capital Advisers LLC boosted its holdings in shares of Netflix by 875.7% during the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock valued at $2,920,000 after acquiring an additional 27,951 shares in the last quarter. Contravisory Investment Management Inc. raised its position in Netflix by 837.2% in the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock valued at $10,443,000 after purchasing an additional 99,496 shares during the last quarter. BNC Wealth Management LLC raised its position in Netflix by 991.3% in the fourth quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock valued at $3,866,000 after purchasing an additional 37,451 shares during the last quarter. Crew Capital Management Ltd boosted its stake in shares of Netflix by 1,021.9% during the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock valued at $847,000 after purchasing an additional 8,226 shares in the last quarter. Finally, Family Capital Trust Co grew its holdings in shares of Netflix by 20,869.5% during the fourth quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network’s stock worth $2,576,000 after purchasing an additional 27,339 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

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.