Netflix (NASDAQ:NFLX) Stock Price Target Lowered at JPMorgan Chase & Co.

Key Points

• JPMorgan lowered Netflix’s price target from $85 to $81 while maintaining an “overweight” rating; the target still implied 24.11% upside from the stock’s previous close. Analysts overall rated Netflix a “Moderate Buy,” with a consensus target of $90.10.
• Netflix reported quarterly EPS of $0.87, beating expectations of $0.82, while revenue reached $12.87 billion—up 11.9% year over year. Net margin was 28.22%, and return on equity stood at 40.02%.
• Shares fell to $65.27, near the company’s one-year low, amid concerns about weaker revenue guidance, reduced advertising-revenue and free-cash-flow forecasts, and slowing growth. Company insiders sold approximately $13.1 million of stock over the past 90 days.

Netflix (NASDAQ:NFLX - Get Free Report) had its price objective cut by investment analysts at JPMorgan Chase & Co. from $85.00 to $81.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the Internet television network's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 24.11% from the stock's previous close.

Several other brokerages also recently weighed in on NFLX. BMO Capital Markets reiterated an "outperform" rating and issued a $125.00 target price (down from $135.00) on shares of Netflix in a research note on Friday. China Intl Cap raised Netflix to a "strong-buy" rating in a report on Tuesday, July 21st. Morgan Stanley set a $77.00 price target on Netflix in a research note on Wednesday. Evercore restated an "outperform" rating and set a $90.00 price target on shares of Netflix in a research note on Wednesday. Finally, DZ Bank reaffirmed a "buy" rating on shares of Netflix in a report on Monday, July 20th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $90.10.

Netflix Stock Performance

Shares of NASDAQ NFLX traded down $3.42 during midday trading on Wednesday, reaching $65.27. 46,647,970 shares of the company were exchanged, compared to its average volume of 42,357,305. 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 1 year low of $64.10 and a 1 year high of $116.73. The stock has a fifty day simple moving average of $74.92 and a 200 day simple moving average of $80.20. The stock has a market cap of $271.76 billion, a P/E ratio of 20.57, a PEG ratio of 0.99 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.05. The firm had revenue of $12.87 billion for 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%. The firm's revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.59 EPS. On average, research analysts forecast that Netflix will post 3.59 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, August 6th. The shares were 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 $8,893,265.74. This trade represents a 18.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard N. Barton sold 720 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares of the company's stock, valued at $185,164.20. This represents a 22.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is currently owned by insiders.

Institutional Trading of Netflix

A number of institutional investors have recently added to or reduced their stakes in NFLX. American Capital Advisory LLC raised its holdings in Netflix by 0.8% during the first quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network's stock worth $1,345,000 after purchasing an additional 109 shares during the last quarter. CWS Financial Advisors LLC boosted its position in Netflix by 3.2% during the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network's stock worth $347,000 after purchasing an additional 112 shares in the last quarter. Warner Group LLC boosted its position in Netflix by 2.2% during the first quarter. Warner Group LLC now owns 5,230 shares of the Internet television network's stock worth $503,000 after purchasing an additional 114 shares in the last quarter. Financial Avengers Inc. boosted its position in Netflix by 9.8% during the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network's stock worth $124,000 after purchasing an additional 115 shares in the last quarter. Finally, PAX Financial Group LLC boosted its position in Netflix by 2.5% during the first quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network's stock worth $466,000 after purchasing an additional 116 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix exceeded third-quarter earnings expectations, reporting diluted EPS of $0.87 versus approximately $0.82 expected. Revenue rose 12% year over year to $12.87 billion, operating margin expanded to 34.6%, and net income increased about 44% to $3.66 billion. Netflix Q3 results
• Positive Sentiment: Management maintained its 2026 profitability target and said it still expects double-digit revenue growth into 2027, supported by pricing, content and advertising. Netflix also expects advertising revenue to grow more than 80% in 2026, despite execution delays. Netflix earnings call highlights
• Neutral Sentiment: Netflix is restructuring its content organization, including recent layoffs and executive departures, while planning new programming and live events intended to improve viewing hours and U.S. execution. Management acknowledged that content quality and engagement need to improve.
• Negative Sentiment: Fourth-quarter revenue guidance of roughly $13.4 billion fell short of analyst expectations and implies another slowdown in sales growth. The forecast also includes a lower 26% operating margin, partly because of restructuring costs. Netflix fourth-quarter forecast
• Negative Sentiment: Netflix reduced its 2026 advertising-revenue forecast to approximately $2.7 billion from $3 billion and lowered its free-cash-flow outlook to about $12 billion. The weaker ad outlook undermines a key part of the company’s growth strategy. Netflix advertising forecast
• Negative Sentiment: Analysts responded with downgrades and price-target reductions, including Needham’s move from “buy” to “hold.” Investors also remain concerned about stagnant viewership, competition from YouTube and TikTok, and the lack of a recent breakout global hit.

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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