Rothschild & Co Redburn Issues Pessimistic Forecast for Netflix (NASDAQ:NFLX) Stock Price

Netflix (NASDAQ:NFLX) had its target price reduced by stock analysts at Rothschild & Co Redburn from $145.00 to $120.00 in a report released on Wednesday. The firm presently has a “buy” rating on the Internet television network’s stock. Rothschild & Co Redburn’s price objective would suggest a potential upside of 44.09% from the company’s current price.

A number of other research firms also recently issued reports on NFLX. Piper Sandler reissued a “positive” rating and set a $103.00 price objective (down from $140.00) on shares of Netflix in a report on Wednesday. Needham & Company LLC cut their target price on Netflix from $150.00 to $120.00 and set a “buy” rating for the company in a research note on Wednesday. Citigroup restated a “neutral” rating and issued a $129.50 target price (up from $128.00) on shares of Netflix in a research note on Friday, October 3rd. Cfra Research cut Netflix from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Finally, UBS Group set a $95.00 price target on shares of Netflix in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, thirty-two have given a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Netflix presently has an average rating of “Moderate Buy” and an average price target of $121.23.

Netflix Stock Performance

Netflix stock traded down $3.98 on Wednesday, reaching $83.28. 76,042,282 shares of the stock were exchanged, compared to its average volume of 50,319,621. Netflix has a twelve month low of $81.93 and a twelve month high of $134.12. The stock has a market cap of $352.89 billion, a PE ratio of 34.88 and a beta of 1.71. The firm has a fifty day moving average price of $97.95 and a two-hundred day moving average price of $112.22. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56.

Netflix (NASDAQ:NFLX) last announced its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.01. The company had revenue of $12.05 billion during the quarter, compared to the consensus estimate of $11.97 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. The company’s revenue was up 17.6% on a year-over-year basis. During the same period in the previous year, the firm posted $4.27 earnings per share. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Sell-side analysts anticipate that Netflix will post 24.58 EPS for the current year.

Insider Buying and Selling at Netflix

In other news, insider David A. Hyman sold 23,439 shares of the company’s stock in a transaction on Friday, January 16th. The stock was sold at an average price of $88.11, for a total value of $2,065,210.29. Following the transaction, the insider owned 316,100 shares of the company’s stock, valued at $27,851,571. This represents a 6.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Bradford L. Smith sold 31,790 shares of the firm’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $88.86, for a total value of $2,824,859.40. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at $7,081,253.40. This trade represents a 28.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,653,599 shares of company stock worth $173,141,263. Corporate insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

A number of institutional investors have recently modified their holdings of NFLX. Brighton Jones LLC increased its position in Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock worth $4,804,000 after buying an additional 257 shares in the last quarter. Revolve Wealth Partners LLC grew its stake in Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after buying an additional 144 shares during the last quarter. MBA Advisors LLC bought a new stake in shares of Netflix during the second quarter valued at about $253,000. Sivia Capital Partners LLC lifted its holdings in shares of Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after buying an additional 246 shares during the period. Finally, Wedge Capital Management L L P NC increased its position in shares of Netflix by 31.9% in the second quarter. Wedge Capital Management L L P NC now owns 302 shares of the Internet television network’s stock worth $404,000 after acquiring an additional 73 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 results beat estimates and subscriber milestone — Netflix reported slightly better‑than‑expected EPS and revenue and said paid memberships topped ~325 million, validating continued subscription growth and content leverage. Reuters: Netflix beats revenue estimates
• Positive Sentiment: Ad business gaining traction — Management flagged advertising revenue topping ~$1.5B in 2025, giving a material, higher‑margin monetization lever beyond subscriptions. Deadline: Ad revenue growth
• Neutral Sentiment: All‑cash Warner Bros amendment — Netflix shifted its WBD offer to an all‑cash structure (same headline price), which can speed shareholder approval and remove stock risk but concentrates the deal’s cash burden on Netflix. That tradeoff is a key uncertainty for valuation. CNBC: All‑cash deal
• Neutral Sentiment: Analysts remain mixed — Many firms reaffirm Buy/Overweight stances but trimmed price targets after the print; Wall Street is parsing longer‑term upside vs. near‑term execution and deal risk. TipRanks: analyst reactions
• Negative Sentiment: Disappointing near‑term guidance — Q1 EPS guidance came in below consensus, which is the primary reason the stock sold off despite the quarter’s beat. Proactive: guidance misses
• Negative Sentiment: Share‑buyback pause and added debt for WBD — Netflix paused repurchases to conserve cash for the acquisition and has arranged additional debt, removing a shareholder‑friendly use of capital and raising financing/margin concerns. TalkMarkets: buyback pause
• Negative Sentiment: Higher content spend and margin pressure — Netflix plans to raise program spending materially in 2026, which could compress near‑term margins even as it targets long‑term growth. Financial Post: content spend
• Negative Sentiment: Analyst price‑target cuts and insider selling amplify downside — Several brokers cut targets after the call and recent insider sales were disclosed, which combined with a risk‑off market amplified the share‑price decline. Finbold: targets cut

About Netflix

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.