Netflix (NASDAQ:NFLX) Stock Price Target Lowered at Guggenheim

Key Points

• Guggenheim lowered its Netflix price target from $80 to $78 while maintaining a “buy” rating, implying approximately 13.55% upside from the reported share price.
• Netflix reported quarterly EPS of $0.87, beating the $0.82 consensus estimate, while revenue reached $12.87 billion and increased 11.9% year over year.
• Analyst sentiment remains broadly positive, with MarketBeat citing a consensus “Moderate Buy” rating and an average price target of $91.80, although targets from several firms were also reduced.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price lowered by Guggenheim from $80.00 to $78.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage currently has a "buy" rating on the Internet television network's stock. Guggenheim's price target suggests a potential upside of 13.55% from the company's current price.

NFLX has been the subject of a number of other research reports. New Street Research upped their target price on Netflix from $96.00 to $102.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. DZ Bank reiterated a "buy" rating on shares of Netflix in a report on Monday, July 20th. Rosenblatt Securities reissued a "neutral" rating and issued a $75.00 price target on shares of Netflix in a research report on Friday, October 16th. Daiwa Securities Group reduced their price target on Netflix from $102.00 to $76.00 and set an "outperform" rating for the company in a research report on Wednesday, July 22nd. Finally, Bank of America decreased their price objective on Netflix from $105.00 to $90.00 and set a "buy" rating for the company in a research note on Wednesday. Three investment 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 stock. According to MarketBeat, Netflix has a consensus rating of "Moderate Buy" and an average target price of $91.80.

Netflix Price Performance

NFLX opened at $68.69 on Wednesday. The company has a market capitalization of $286.02 billion, a price-to-earnings ratio of 21.62, a PEG ratio of 0.99 and a beta of 1.62. The company has a current ratio of 1.14, a quick 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's fifty day simple moving average is $74.92 and its 200-day simple moving average is $80.20.

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

Insiders Place Their Bets

In other news, Director Richard N. Barton sold 2,160 shares of the firm's stock in a transaction on 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 sale, the director owned 246 shares of the company's stock, valued at $18,474.60. This trade represents a 89.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Neumann sold 9,248 shares of the firm's stock in a transaction on 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 SEC filing for this sale provides additional information. In 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 company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Merkkuri Wealth Advisors LLC purchased a new position in shares of Netflix in the first quarter worth $31,000. Bayban grew its holdings in shares of Netflix by 400.0% during the first quarter. Bayban now owns 350 shares of the Internet television network's stock valued at $34,000 after buying an additional 280 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd acquired a new position in shares of Netflix in the 2nd quarter valued at $26,000. Compound Global Advisors LLC acquired a new position in shares of Netflix in the 2nd quarter valued at $29,000. Finally, Burnham & Co LLC acquired a new position in shares of Netflix in the 2nd quarter valued at $29,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix News Summary

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.

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