UBS Group Has Lowered Expectations for Netflix (NASDAQ:NFLX) Stock Price

Netflix (NASDAQ:NFLX) had its target price decreased by investment analysts at UBS Group from $115.00 to $100.00 in a research note issued on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the Internet television network’s stock. UBS Group’s price objective suggests a potential upside of 53.71% from the stock’s previous close.

Other equities research analysts also recently issued reports about the stock. Weiss Ratings upgraded shares of Netflix from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. JPMorgan Chase & Co. reduced their target price on shares of Netflix from $85.00 to $81.00 and set an “overweight” rating on the stock in a report on Wednesday. Needham & Company LLC cut shares of Netflix from a “buy” rating to a “hold” rating in a research report on Wednesday. Wedbush reduced their price objective on Netflix from $105.00 to $90.00 and set an “outperform” rating on the stock in a research note on Friday, October 16th. Finally, Daiwa Securities Group decreased their target price on Netflix from $102.00 to $76.00 and set an “outperform” rating for the company in a research report on Wednesday, July 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, sixteen have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Netflix has an average rating of “Moderate Buy” and a consensus price target of $89.94.

Netflix Trading Down 5.3%

Netflix stock traded down $3.63 during midday trading on Wednesday, reaching $65.06. The stock had a trading volume of 83,353,790 shares, compared to its average volume of 42,544,113. The stock’s 50-day simple moving average is $74.92 and its 200 day simple moving average is $80.20. Netflix has a twelve month low of $64.10 and a twelve month high of $116.73. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a market capitalization of $270.90 billion, a PE ratio of 20.55, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, topping analysts’ consensus estimates of $0.82 by $0.05. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The company had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. During the same period last year, the business posted $0.59 EPS. The company’s quarterly revenue was up 11.9% compared to the same quarter last year. Analysts expect that Netflix will post 3.59 EPS for the current year.

Insider Activity at Netflix

In other news, insider David Hyman sold 5,723 shares of Netflix stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the sale, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $23,027,885. The trade was a 1.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Peters sold 27,312 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new position in Netflix in the second quarter worth about $24,902,221,000. Bank of New York Mellon Corp acquired a new stake in Netflix during the second quarter valued at approximately $1,906,482,000. Legal & General Group Plc acquired a new stake in Netflix during the second quarter valued at approximately $1,886,526,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Netflix during the second quarter valued at approximately $1,481,303,000. Finally, Assenagon Asset Management S.A. lifted its holdings in Netflix by 194.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 16,111,438 shares of the Internet television network’s stock worth $1,121,034,000 after buying an additional 10,647,803 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix reported third-quarter EPS of $0.87, above the $0.82 consensus estimate. Revenue rose approximately 12% year over year to $12.87 billion, while operating margin expanded to 34.6% and net income increased 44% to about $3.66 billion. Netflix Q3 results
• Positive Sentiment: Some analysts view the selloff as an opportunity: BMO reportedly sees substantial upside, while TD Cowen maintained a Buy rating with a $100 target. UBS said Netflix’s fundamental positioning remains intact, and management continues to target double-digit revenue growth into 2027. BMO analyst view
• Neutral Sentiment: Management is pursuing additional growth avenues, including theatrical releases, live events, third-party content partnerships and a revamped content organization. However, investors want evidence that these initiatives can improve viewing engagement and produce more breakout hits. Netflix theatrical strategy
• Negative Sentiment: Netflix forecast fourth-quarter revenue of roughly $13.44 billion, below analysts’ expectations of about $13.52 billion, implying another quarter of slowing sales growth. The company also reduced its 2026 advertising-revenue outlook to approximately $2.7 billion from $3 billion because product rollouts are progressing more slowly than expected. Netflix weak fourth-quarter forecast
• Negative Sentiment: Investors remain concerned about stagnant or modest viewing-hour growth, particularly in the U.S., as YouTube, TikTok and other streaming services compete for attention. Co-CEO Ted Sarandos acknowledged that Netflix needs better execution and stronger U.S. programming. Netflix engagement concerns
• Negative Sentiment: Wall Street responded with multiple price-target reductions, including cuts from JPMorgan, Bank of America and Guggenheim, while Needham downgraded NFLX to Hold. Lower 2026 free-cash-flow guidance and restructuring costs that are expected to pressure fourth-quarter margins added to the selling pressure. Netflix analyst price-target cuts

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.