Netflix (NASDAQ:NFLX) Stock Price Down 2.1% on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares were down 2.1% during mid-day trading on Thursday after New Street Research lowered their price target on the stock from $100.00 to $96.00. New Street Research currently has a neutral rating on the stock. Netflix traded as low as $82.98 and last traded at $83.54. Approximately 68,709,497 shares were traded during mid-day trading, an increase of 24% from the average daily volume of 55,557,773 shares. The stock had previously closed at $85.36.

Other equities analysts also recently issued reports about the company. Jefferies Financial Group reaffirmed a “buy” rating on shares of Netflix in a research note on Wednesday. Wedbush restated an “outperform” rating and issued a $115.00 price target on shares of Netflix in a research report on Wednesday. Weiss Ratings reissued a “buy (b-)” rating on shares of Netflix in a research note on Monday, December 29th. Moffett Nathanson dropped their target price on shares of Netflix from $140.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $98.00 target price (up previously from $95.00) on shares of Netflix in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $119.36.

Insider Buying and Selling at Netflix

In other news, Director Bradford L. Smith sold 31,790 shares of the stock in a transaction on 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 completion of the sale, the director owned 79,690 shares of the company’s stock, valued at $7,081,253.40. This represents a 28.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Theodore A. Sarandos sold 20,270 shares of the firm’s stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $109.21, for a total transaction of $2,213,646.16. Following the completion of the transaction, the chief executive officer directly owned 151,680 shares in the company, valued at approximately $16,564,669.44. This represents a 11.79% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 1,653,599 shares of company stock worth $173,141,263. Company insiders own 1.37% of the company’s stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 results beat modestly and subscriber/ad traction. Netflix posted EPS slightly above estimates, revenue topped forecasts and paid memberships passed ~325M — evidence the core business remains healthy. Reuters: Q4 beat
• Positive Sentiment: Advertising growth is accelerating — management said ad revenue exceeded ~$1.5B in 2025, supporting monetization upside beyond subscriptions. Deadline: ad revenue
• Positive Sentiment: Unusually heavy call buying and some institutional buying may signal short‑term bullish positioning — traders bought ~765k call options (≈114% above average); ARK also added shares recently.
• Neutral Sentiment: Analyst reaction is mixed — many firms kept Buy/Outperform stances but trimmed price targets after the quarter and guidance; that leaves a split street view. InsiderMonkey: mixed analyst remarks
• Negative Sentiment: Conservative near‑term guidance and buyback pause. Netflix guided Q1 EPS below some Street estimates and suspended share repurchases to preserve cash for the Warner Bros. offer — a catalyst for the sell‑off. Proactive: guidance TalkMarkets: buyback pause
• Negative Sentiment: Warner Bros. deal uncertainty and regulatory scrutiny. Management faces an uphill path (competing bids, EU/antitrust review) and Sarandos will testify before the Senate — all raise execution and approval risk. Reuters: Senate testimony
• Negative Sentiment: Analysts trimming targets and margin concerns. Several firms cut price targets after the call; Netflix also plans higher content spend in 2026, which may compress near‑term margins. MarketScreener: PT cuts
• Negative Sentiment: Insider selling and geopolitical consumer backlash. Recent insider sales and reports of consumer boycotts in parts of Europe (Denmark) add sentiment headwinds, though impact on revenues is likely small for now. SEC: insider sale Benzinga: Denmark boycott

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. First Financial Corp IN grew its position in shares of Netflix by 900.0% in the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its stake in Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 239 shares during the last quarter. Imprint Wealth LLC acquired a new position in Netflix in the third quarter worth $25,000. Retirement Wealth Solutions LLC acquired a new position in Netflix in the third quarter worth $28,000. Finally, MB Levis & Associates LLC increased its stake in Netflix by 177.8% during the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock valued at $28,000 after purchasing an additional 192 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Stock Down 2.1%

The stock’s fifty day simple moving average is $97.34 and its two-hundred day simple moving average is $111.91. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company has a market capitalization of $353.99 billion, a price-to-earnings ratio of 33.06 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.96%. The firm had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same quarter in the prior year, the business earned $0.43 earnings per share. Netflix’s quarterly revenue was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, sell-side analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

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.