Bank of America Reiterates Buy Rating for Netflix (NASDAQ:NFLX)

Key Points

• Bank of America reiterated its Buy rating on Netflix and kept a $125 price target, implying about 39% upside from the prior close.
• Netflix’s recent earnings beat expectations, with EPS of $1.23 versus $0.76 expected and revenue of $12.25 billion, up 16.2% year over year.
• Shares were trading higher on the day, and despite some insider selling, the stock continues to draw broad analyst support with a Moderate Buy consensus and an average target price of $114.82.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reissued by equities researchers at Bank of America in a research note issued on Monday,Benzinga reports. They presently have a $125.00 price objective on the Internet television network's stock. Bank of America's price target would suggest a potential upside of 39.37% from the stock's previous close.

Several other research firms have also commented on NFLX. KeyCorp reissued an "overweight" rating and issued a $115.00 price target (up from $108.00) on shares of Netflix in a research report on Tuesday, April 14th. Rothschild & Co Redburn set a $120.00 price objective on Netflix in a research report on Wednesday, January 21st. BMO Capital Markets decreased their price target on shares of Netflix from $143.00 to $135.00 and set an "outperform" rating for the company in a research report on Wednesday, January 21st. President Capital increased their price target on shares of Netflix from $133.00 to $134.00 and gave the company a "buy" rating in a research report on Tuesday, March 31st. Finally, UBS Group set a $104.00 price objective on shares of Netflix in a research note on Tuesday, January 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $114.82.

Netflix Stock Up 3.1%

Shares of NFLX traded up $2.67 during midday trading on Monday, reaching $89.69. 20,038,846 shares of the stock were exchanged, compared to its average volume of 46,000,227. Netflix has a 52 week low of $75.01 and a 52 week high of $134.12. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The company's 50 day moving average is $94.74 and its two-hundred day moving average is $94.67. The company has a market capitalization of $377.68 billion, a P/E ratio of 28.94, a PEG ratio of 1.11 and a beta of 1.55.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. During the same quarter in the prior year, the company earned $6.61 EPS. The business's revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, sell-side analysts anticipate that Netflix will post 3.6 earnings per share for the current year.

Insider Buying and Selling at Netflix

In other news, Director Reed Hastings sold 407,550 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the sale, the director owned 3,940 shares in the company, valued at approximately $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the sale, the chief financial officer owned 73,787 shares in the company, valued at $6,563,353.65. The trade was a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,422,769 shares of company stock valued at $135,144,073. Insiders own 1.24% of the company's stock.

Institutional Investors Weigh In On Netflix

A number of large investors have recently modified their holdings of the business. Apriem Advisors grew its stake in Netflix by 0.6% during the 3rd quarter. Apriem Advisors now owns 1,567 shares of the Internet television network's stock valued at $1,879,000 after purchasing an additional 9 shares during the last quarter. Tortoise Investment Management LLC lifted its holdings in shares of Netflix by 10.8% during the third quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network's stock worth $110,000 after purchasing an additional 9 shares during the period. Brass Tax Wealth Management Inc. lifted its holdings in shares of Netflix by 3.2% during the third quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network's stock worth $345,000 after purchasing an additional 9 shares during the period. Pacific Sun Financial Corp lifted its holdings in shares of Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock worth $688,000 after purchasing an additional 9 shares during the period. Finally, Stewardship Advisors LLC lifted its holdings in shares of Netflix by 6.0% during the third quarter. Stewardship Advisors LLC now owns 178 shares of the Internet television network's stock worth $213,000 after purchasing an additional 10 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts remain upbeat on Netflix, with Citi and JPMorgan cited as bullish and Bank of America reportedly issuing a very optimistic forecast. One note even suggested the stock could nearly triple by the end of 2027 based on earnings momentum and analyst consensus. Netflix Price Prediction: Why a 270% Jump By The End of 2027 Is Possible
• Positive Sentiment: Commentary highlighted Netflix’s ad-supported business as a key growth driver, with the company now reaching a large audience and investors watching for higher ad prices and better monetization, especially around live sports. Netflix Has 250 Million Ad Viewers. Now It Has To Prove Their Value
• Positive Sentiment: Analysts at Citi maintained a Buy rating and pointed to growth in ad-supported business and user engagement as reasons for continued optimism about Netflix’s fundamentals. Citi Maintains Buy Rating on Netflix (NFLX) Stock
• Neutral Sentiment: Several articles framed the recent pullback as a valuation reset rather than a deterioration in the business, suggesting the stock may simply be repricing after a strong prior run. A Look At Netflix (NFLX) Valuation As Long Term Gains Contrast With Recent Share Price Weakness
• Neutral Sentiment: Netflix co-CEO Greg Peters discussed the company’s growth strategy and why it passed on the Warner Bros. Discovery deal, reinforcing that management is focused on organic expansion rather than a major acquisition. Netflix’s Greg Peters on Why It Walked Away from the Warner Bros. Discovery Deal
• Negative Sentiment: Some reports noted that Netflix’s recent weakness has been tied to concerns about guidance and the market questioning near-term fundamentals, even though several analysts argue the selloff has gone too far. NFLX Stock Collapsed. The Fundamentals Did Not

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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