Bank of America Has Lowered Expectations for Netflix (NASDAQ:NFLX) Stock Price

Key Points

• Bank of America cut its Netflix price target to $125 from $149 while maintaining a "buy" rating, implying roughly a 26% upside, and the Street consensus target sits around $115.79.
• Netflix slightly beat quarterly expectations with $0.56 EPS (vs. $0.55 est.) and revenue of $12.05 billion, up 17.6% year‑over‑year, showing continued top‑line growth and healthy margins.
• There has been notable insider selling recently—most prominently director Reed Hastings selling about 410,550 shares for roughly $39.8 million—and insiders sold about 1.52 million shares (~$137.3 million) over the past 90 days, while institutional investors still own about 80.9% of the stock.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price lowered by stock analysts at Bank of America from $149.00 to $125.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the Internet television network's stock. Bank of America's price objective would indicate a potential upside of 26.08% from the company's current price.

Several other research firms also recently commented on NFLX. KeyCorp set a $110.00 price objective on Netflix and gave the stock an "overweight" rating in a report on Friday, January 16th. Royal Bank Of Canada reiterated a "hold" rating on shares of Netflix in a research note on Wednesday, January 21st. DZ Bank restated a "buy" rating on shares of Netflix in a research report on Friday, February 27th. Jefferies Financial Group restated a "buy" rating on shares of Netflix in a report on Friday, February 27th. Finally, UBS Group set a $104.00 target price on shares of Netflix in a research note on Tuesday, January 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and thirteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $115.79.

Netflix Stock Up 0.5%

Shares of Netflix stock opened at $99.14 on Friday. The company has a 50-day simple moving average of $86.21 and a two-hundred day simple moving average of $103.72. The stock has a market capitalization of $418.58 billion, a PE ratio of 39.23, a price-to-earnings-growth ratio of 1.40 and a beta of 1.68. Netflix has a 52-week low of $75.01 and a 52-week high of $134.12. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping analysts' consensus estimates of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company had revenue of $12.05 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the business earned $0.43 EPS. The firm's revenue for the quarter was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, analysts anticipate that Netflix will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Reed Hastings sold 410,550 shares of Netflix stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $97.01, for a total transaction of $39,827,455.50. Following the transaction, the director directly owned 3,940 shares of the company's stock, valued at $382,219.40. The trade was a 99.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Cletus R. Willems sold 3,136 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $82.67, for a total transaction of $259,253.12. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,520,133 shares of company stock valued at $137,259,786. 1.37% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently bought and sold shares of NFLX. Imprint Wealth LLC purchased a new stake in Netflix in the 3rd quarter worth $25,000. Legacy Investment Solutions LLC purchased a new stake in shares of Netflix in the second quarter worth about $31,000. Retirement Wealth Solutions LLC purchased a new position in Netflix during the 3rd quarter valued at approximately $28,000. Steph & Co. grew its holdings in Netflix by 188.9% during the 3rd quarter. Steph & Co. now owns 26 shares of the Internet television network's stock valued at $31,000 after buying an additional 17 shares in the last quarter. Finally, Bare Financial Services Inc increased its stake in Netflix by 93.3% in the 3rd quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network's stock worth $35,000 after acquiring an additional 14 shares during the last quarter. Hedge funds and other 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: Netflix walked away from its pursuit of Warner Bros. Discovery and will receive a reported ~$2.8 billion breakup fee, strengthening its balance sheet and giving management dry powder to invest in organic growth, technology, or buybacks. Read More.
• Positive Sentiment: Market reaction has been broadly favorable: investors and some analysts interpret the decision to stop bidding as disciplined capital allocation, which helped trigger a multi-session rally and renewed bullish commentary. Read More.
• Positive Sentiment: Netflix acquired InterPositive, Ben Affleck’s AI filmmaking startup, bringing AI-driven production tools and talent in-house — a strategic move that advances Netflix’s tech-first content production capabilities. Read More.
• Neutral Sentiment: Reports show outside parties (including a disclosed presidential trust) bought Netflix debt during the M&A drama — notable for bond-market interest but not directly equity-positive or negative. Read More.
• Negative Sentiment: Significant insider selling was reported: a Netflix director (reported in some outlets as Reed Hastings) disposed of roughly $39.8M of stock, and the CFO sold about $2.78M — these large sales can create investor unease about insider conviction even if they’re for personal reasons. Read More. Read More.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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