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

Key Points

• Citigroup has lowered its target price for Netflix from $1,295 to $1,280, indicating a potential upside of 10.11% from the current stock price.
• Netflix's stock has received various ratings, with one analyst giving it a Strong Buy, while others maintain a mix of Buy, Hold, and Sell ratings, resulting in an average rating of "Moderate Buy."
• In the latest quarterly results, Netflix reported earnings per share of $7.19, exceeding expectations, along with a revenue of $11.08 billion, marking a 15.9% increase year-over-year.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price cut by equities research analysts at Citigroup from $1,295.00 to $1,280.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. Citigroup's price objective points to a potential upside of 10.11% from the company's current price.

NFLX has been the subject of a number of other reports. Morgan Stanley reiterated an "equal weight" rating on shares of Netflix in a research report on Monday, July 21st. Sanford C. Bernstein upped their price objective on Netflix from $1,200.00 to $1,390.00 and gave the stock an "outperform" rating in a research note on Thursday, July 17th. Robert W. Baird boosted their price target on Netflix from $1,300.00 to $1,500.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. Wall Street Zen raised shares of Netflix from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Finally, JPMorgan Chase & Co. upped their target price on shares of Netflix from $1,230.00 to $1,300.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,335.00.

Netflix Stock Performance

Shares of NFLX opened at $1,162.52 on Thursday. The business has a fifty day moving average of $1,207.90 and a 200 day moving average of $1,157.42. The firm has a market capitalization of $493.99 billion, a P/E ratio of 49.53, a PEG ratio of 1.97 and a beta of 1.59. Netflix has a one year low of $677.88 and a one year high of $1,341.15. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, topping the consensus estimate of $7.07 by $0.12. The business had revenue of $11.08 billion for the quarter, compared to analysts' expectations of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The company's revenue was up 15.9% compared to the same quarter last year. During the same quarter last year, the company posted $4.88 EPS. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. As a group, sell-side analysts anticipate that Netflix will post 24.58 EPS for the current year.

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos sold 2,026 shares of Netflix stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,160.62, for a total transaction of $2,351,416.12. Following the transaction, the chief executive officer directly owned 15,168 shares of the company's stock, valued at $17,604,284.16. This trade represents a 11.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Gregory K. Peters sold 2,026 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the completion of the sale, the chief executive officer owned 12,781 shares of the company's stock, valued at approximately $14,793,240.64. This represents a 13.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock worth $122,710,980 over the last ninety days. 1.37% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

A number of large investors have recently bought and sold shares of NFLX. Halbert Hargrove Global Advisors LLC raised its holdings in shares of Netflix by 100.0% during the first quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock worth $25,000 after acquiring an additional 13 shares during the period. Legacy Investment Solutions LLC acquired a new stake in shares of Netflix in the 2nd quarter valued at about $31,000. Stephens Consulting LLC lifted its holdings in shares of Netflix by 150.0% in the second quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock valued at $33,000 after purchasing an additional 15 shares in the last quarter. Rossby Financial LCC acquired a new position in shares of Netflix during the second quarter worth about $35,000. Finally, Flaharty Asset Management LLC bought a new position in shares of Netflix during the first quarter worth about $37,000. 80.93% of the stock is owned by institutional investors.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.

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