Netflix (NASDAQ:NFLX) Cut to Hold at Needham & Company LLC

Netflix (NASDAQ:NFLX - Get Free Report) was downgraded by investment analysts at Needham & Company LLC from a "buy" rating to a "hold" rating in a note issued to investors on Wednesday, MarketBeat.com reports.

Other analysts have also recently issued research reports about the company. William Blair reiterated an "outperform" rating on shares of Netflix in a research report on Wednesday. Wells Fargo & Company cut Netflix from a "neutral" rating to an "underweight" rating and reduced their price objective for the company from $80.00 to $57.00 in a research report on Friday, September 18th. Itau BBA Securities reduced their price objective on Netflix from $151.40 to $96.00 and set an "outperform" rating for the company in a research report on Wednesday, August 5th. DZ Bank reiterated a "buy" rating on shares of Netflix in a research report on Monday, July 20th. Finally, CLSA started coverage on Netflix in a research report on Monday, July 20th. They set an "outperform" rating for the company. Three research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $90.47.

Netflix Stock Down 1.7%

Netflix stock opened at $68.69 on Wednesday. The stock has a market cap of $286.02 billion, a PE ratio of 21.62, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. Netflix has a one year low of $65.08 and a one year high of $124.86. The stock has a fifty day moving average of $74.92 and a 200 day moving average of $80.20.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.82 by $0.05. The company had revenue of $12.87 billion during the quarter, compared to analysts' expectations of $12.87 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. Netflix's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.59 earnings per share. As a group, sell-side analysts predict that Netflix will post 3.59 EPS for the current year.

Insider Buying and Selling

In other news, CEO Gregory K. 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 transaction, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Richard N. Barton sold 2,160 shares of the company's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the transaction, the director directly owned 246 shares of the company's stock, valued at approximately $18,474.60. This trade represents a 89.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 179,045 shares of company stock worth $13,132,194 in the last three months. Corporate insiders own 1.24% of the company's stock.

Institutional Trading of Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Clal Insurance Enterprises Holdings Ltd purchased a new position in Netflix in the second quarter worth approximately $26,000. Compound Global Advisors LLC purchased a new position in Netflix in the second quarter worth approximately $29,000. Burnham & Co LLC purchased a new position in Netflix in the second quarter worth approximately $29,000. Merkkuri Wealth Advisors LLC purchased a new position in Netflix in the first quarter worth approximately $31,000. Finally, Bayban grew its position in Netflix by 400.0% in the first quarter. Bayban now owns 350 shares of the Internet television network's stock worth $34,000 after acquiring an additional 280 shares during the period. Institutional investors own 80.93% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q3 results exceeded profit expectations: Netflix reported $0.87 in diluted EPS versus roughly $0.82 expected. Revenue rose 12% year over year to $12.87 billion, while net income increased 44% to approximately $3.66 billion and operating margin reached 34.6%. Netflix Q3 earnings results
• Positive Sentiment: Management remains confident in long-term revenue growth: CFO Spencer Neumann said Netflix could deliver double-digit revenue growth into 2027 through pricing, advertising and a broad content slate, even if viewing-hour growth remains modest. Netflix CFO revenue growth outlook
• Positive Sentiment: Content and engagement initiatives are planned: Netflix is targeting stronger U.S. execution and expects upcoming films, series and live programming—including projects involving Brad Pitt, Narnia and NFL games—to improve viewing and membership trends. Netflix content and engagement strategy

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.