Wedbush Issues Pessimistic Forecast for Netflix (NASDAQ:NFLX) Stock Price

Key Points

• Wedbush cut Netflix’s price target to $90 from $105 while maintaining an “outperform” rating, implying roughly 24% upside from the reported $72.61 share price.
• Analyst opinion remains broadly positive but mixed: Netflix has a consensus “Moderate Buy” rating and an average price target of $93.82, with targets ranging from $57 to $100 among recent firms.
• Netflix’s latest quarter narrowly exceeded EPS expectations and delivered 13.4% year-over-year revenue growth, while company insiders sold shares worth about $13.1 million over the past 90 days.

Netflix (NASDAQ:NFLX - Get Free Report) had its price target cut by stock analysts at Wedbush from $105.00 to $90.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has an "outperform" rating on the Internet television network's stock. Wedbush's price target would suggest a potential upside of 23.95% from the stock's current price.

NFLX has been the subject of several other research reports. Wolfe Research reiterated an "outperform" rating and issued a $95.00 price target (up from $84.00) on shares of Netflix in a report on Tuesday, August 25th. Wells Fargo & Company downgraded shares of Netflix from a "neutral" rating to an "underweight" rating and lowered their price objective for the stock from $80.00 to $57.00 in a research report on Friday, September 18th. Morgan Stanley dropped their price objective on shares of Netflix from $83.00 to $80.00 and set an "overweight" rating on the stock in a report on Thursday, October 8th. Moffett Nathanson dropped their price objective on shares of Netflix from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Finally, KGI Securities cut shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and a consensus price target of $93.82.

Netflix Price Performance

Shares of NFLX opened at $72.61 on Friday. The stock has a 50 day simple moving average of $75.25 and a 200 day simple moving average of $80.73. Netflix has a 52-week low of $65.08 and a 52-week high of $124.86. 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 firm has a market capitalization of $302.34 billion, a PE ratio of 22.85, a P/E/G ratio of 1.00 and a beta of 1.62.

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

Insiders Place Their Bets

In other Netflix news, CEO Gregory Peters sold 27,312 shares of the business's stock in a transaction that occurred on 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 sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Theodore Sarandos sold 27,312 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the sale, the chief executive officer owned 178,954 shares in the company, valued at $13,126,275.90. The trade was a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 179,045 shares of company stock worth $13,132,194 in the last 90 days. Company insiders own 1.24% of the company's stock.

Institutional Trading of Netflix

Institutional investors have recently made changes to their positions in the business. Annex Advisory Services LLC boosted its stake in shares of Netflix by 7.7% during the 3rd quarter. Annex Advisory Services LLC now owns 9,576 shares of the Internet television network's stock worth $666,000 after buying an additional 688 shares during the last quarter. Granite Islands Private Wealth LLC increased its position in shares of Netflix by 1.4% in the third quarter. Granite Islands Private Wealth LLC now owns 40,930 shares of the Internet television network's stock valued at $2,841,000 after acquiring an additional 570 shares during the last quarter. Michael J. Porro & Co. Financial Advisors Inc. increased its position in shares of Netflix by 3.7% in the third quarter. Michael J. Porro & Co. Financial Advisors Inc. now owns 12,736 shares of the Internet television network's stock valued at $886,000 after acquiring an additional 460 shares during the last quarter. Paragon Capital Management Inc. increased its position in shares of Netflix by 5.9% in the third quarter. Paragon Capital Management Inc. now owns 14,016 shares of the Internet television network's stock valued at $975,000 after acquiring an additional 786 shares during the last quarter. Finally, Daytona Street Capital LLC increased its position in shares of Netflix by 41.7% in the third quarter. Daytona Street Capital LLC now owns 72,179 shares of the Internet television network's stock valued at $4,868,000 after acquiring an additional 21,234 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies upgraded Netflix to “Strong Buy.” The firm cited revenue-growth opportunities from pricing increases and advertising, and previously assigned an $85 price target. Zacks analyst coverage
• Positive Sentiment: Netflix hired former Disney and Fox executive Peter Rice as chief content officer. Rice will replace Bela Bajaria and is expected to help develop new hit programming as Netflix seeks to strengthen viewer engagement. The market’s initial reaction was favorable, although the transition also introduces execution risk. Reuters article
• Neutral Sentiment: Netflix is scheduled to report third-quarter results on October 20. Investors will focus on revenue, profitability, advertising, engagement and evidence that management’s full-year outlook remains achievable. Wall Street expects the report to clarify whether recent weakness is temporary or reflects a broader slowdown. Zacks earnings preview
• Negative Sentiment: Netflix is cutting roughly 1,000 employees, or 6% of its workforce. The cuts are intended to improve efficiency and redirect resources toward content and other growth initiatives, but their timing—amid slowing growth and before earnings—signals pressure on the business. CNBC layoffs article
• Negative Sentiment: Analysts and market researchers are flagging weaker engagement and rising churn. Reports indicate increased U.S. app churn and declining viewing activity, raising concerns that competition from YouTube and other streaming platforms could make subscriber retention and growth more expensive. TipRanks churn analysis

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.

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