Citizens Jmp Initiates Coverage on Netflix (NASDAQ:NFLX)

Key Points

• Citizens Jmp has initiated coverage on Netflix with a "market perform" rating.
• Analyst consensus from MarketBeat is a Moderate Buy with an average price target of $114.55, though price targets and ratings vary (e.g., Baird cut its target to $120, TD Cowen to $112, Barclays at $115).
• Significant insider selling has occurred recently—Reed Hastings sold 426,290 shares and insiders sold about 1.52 million shares in the last 90 days—while institutional ownership stands around 80.93%.

Equities researchers at Citizens Jmp started coverage on shares of Netflix (NASDAQ:NFLX - Get Free Report) in a note issued to investors on Monday,Benzinga reports. The brokerage set a "market perform" rating on the Internet television network's stock.

A number of other analysts have also recently weighed in on the company. Robert W. Baird lowered their price objective on Netflix from $150.00 to $120.00 and set an "outperform" rating for the company in a research report on Friday, January 23rd. TD Cowen decreased their price target on Netflix from $115.00 to $112.00 and set a "buy" rating for the company in a research note on Wednesday, January 21st. Barclays started coverage on Netflix in a report on Monday, March 2nd. They issued an "equal weight" rating and a $115.00 price target for the company. Erste Group Bank upgraded Netflix from a "hold" rating to a "buy" rating in a research note on Tuesday, March 24th. Finally, Morgan Stanley set a $110.00 target price on shares of Netflix and gave the stock an "overweight" rating in a research note on Wednesday, January 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and thirteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $114.55.

Netflix Price Performance

Shares of Netflix stock opened at $93.43 on Monday. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. The company has a market cap of $394.48 billion, a P/E ratio of 36.97, a PEG ratio of 1.43 and a beta of 1.68. The firm's 50 day moving average price is $87.25 and its 200-day moving average price is $100.61. Netflix has a 52-week low of $75.01 and a 52-week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating 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 analysts' expectations of $11.97 billion. During the same quarter in the prior year, the company posted $0.43 earnings per share. Netflix's revenue for the quarter was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, sell-side analysts predict that Netflix will post 24.58 EPS for the current fiscal year.

Insider Transactions at Netflix

In related news, insider David A. Hyman sold 23,439 shares of the stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $88.11, for a total value of $2,065,210.29. Following the transaction, the insider owned 316,100 shares in the company, valued at approximately $27,851,571. This represents a 6.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Reed Hastings sold 426,290 shares of Netflix stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $91.67, for a total value of $39,078,004.30. Following the transaction, the director owned 3,940 shares of the company's stock, valued at approximately $361,179.80. This represents a 99.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 1,520,133 shares of company stock valued at $137,259,786. 1.37% of the stock is owned by company insiders.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently made changes to their positions in NFLX. First Financial Corp IN raised its position in shares of Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock worth $25,000 after acquiring an additional 243 shares during the period. DiNuzzo Private Wealth Inc. grew its position in shares of Netflix by 885.2% during the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 239 shares during the period. Turning Point Benefit Group Inc. increased its stake in shares of Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 268 shares in the last quarter. Imprint Wealth LLC acquired a new position in Netflix in the 3rd quarter worth about $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in Netflix during the fourth quarter worth approximately $26,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Company Profile

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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