Rosenblatt Securities Reaffirms "Neutral" Rating for Netflix (NASDAQ:NFLX)

Key Points

• Rosenblatt Securities reaffirmed its “neutral” rating on Netflix and set a $75 price target, implying approximately 3.29% upside from the cited share price.
• Analyst sentiment remains broadly positive but mixed: Netflix has an average “Moderate Buy” rating and a consensus price target of $93.82, though several firms recently reduced targets or downgraded the stock.
• Netflix reported quarterly EPS of $0.80, slightly ahead of expectations, while revenue rose 13.4% year over year to $12.56 billion; insiders sold roughly $13.1 million of stock over the past three months, and institutions own 80.93% of shares.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "neutral" rating reissued by investment analysts at Rosenblatt Securities in a report issued on Friday, Benzinga reports. They presently have a $75.00 price target on the Internet television network's stock. Rosenblatt Securities' price target suggests a potential upside of 3.29% from the stock's current price.

A number of other analysts also recently weighed in on the stock. Bank of America decreased their target price on shares of Netflix from $125.00 to $105.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Morgan Stanley dropped their price target on shares of Netflix from $83.00 to $80.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Piper Sandler reaffirmed an "overweight" rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a research note on Friday, July 17th. Wells Fargo & Company cut shares of Netflix from a "neutral" rating to an "underweight" rating and decreased their price objective for the stock from $80.00 to $57.00 in a research report on Friday, September 18th. Finally, HSBC downgraded shares of Netflix from a "buy" rating to a "hold" rating and lowered their target price for the stock from $96.00 to $76.00 in a research note on Tuesday, September 22nd. Four analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $93.82.

Netflix Stock Up 2.9%

Shares of NASDAQ:NFLX opened at $72.61 on Friday. The firm has a market cap of $302.34 billion, a P/E ratio of 22.85, a P/E/G ratio of 1.00 and a beta of 1.62. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix has a 12-month low of $65.08 and a 12-month high of $124.86. The business has a fifty day simple moving average of $75.25 and a 200 day simple moving average of $80.73.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The business's revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.72 EPS. Analysts predict that Netflix will post 3.59 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Spencer Neumann sold 9,248 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider David A. Hyman sold 5,723 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the transaction, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. The trade was a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Nykredit A S purchased a new position in Netflix in the second quarter worth $105,697,000. Rockland Trust Co. increased its position in shares of Netflix by 27.5% during the 3rd quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock valued at $15,253,000 after purchasing an additional 47,339 shares during the last quarter. Ritholtz Wealth Management boosted its holdings in shares of Netflix by 25.0% in the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network's stock worth $10,235,000 after buying an additional 21,260 shares during the last quarter. Welch & Forbes LLC increased its holdings in Netflix by 3,464.5% during the first quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network's stock worth $11,389,000 after buying an additional 115,125 shares during the last quarter. Finally, USS Investment Management Ltd boosted its stake in Netflix by 31.8% in the first quarter. USS Investment Management Ltd now owns 886,527 shares of the Internet television network's stock valued at $85,244,000 after acquiring an additional 213,972 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies upgraded Netflix (NFLX) to “strong buy,” citing potential support from pricing increases and advertising revenue, while maintaining an $85 price target. Netflix stock gets bullish analyst call ahead of next week's earnings
• Positive Sentiment: Netflix appointed former Disney and Fox executive Peter Rice as chief content officer, potentially bringing new strategic direction and industry experience as the company seeks stronger film and television hits. Netflix names former Disney executive Rice as new content chief
• Neutral Sentiment: Netflix reports third-quarter results after the market closes on October 20. Options markets imply a potentially large post-earnings move, increasing near-term volatility as investors assess revenue growth, churn and management’s outlook. Netflix will report earnings on Oct. 20
• Negative Sentiment: Netflix is eliminating roughly 1,000 jobs, or 6% of its workforce, in its largest reduction since 2022. Although the move may lower costs, its timing highlights management’s concerns about slowing growth and intensifying competition. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Investors viewed the replacement of longtime content chief Bela Bajaria immediately after the layoffs as evidence of pressure to improve Netflix’s programming, particularly as viewer engagement slows and reported U.S. app churn rises. Netflix stock falls as content shake-up fails to ease investor worries
• Negative Sentiment: Wedbush lowered its price target from $105 to $90, while Rosenblatt reaffirmed a neutral rating with a $75 target. Analysts remain divided over whether Netflix’s still-positive revenue growth can offset weaker engagement and churn concerns.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.