Netflix, Inc. (NASDAQ:NFLX) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts remain moderately bullish: Fifty-five brokerages assign Netflix a consensus “Moderate Buy” rating, including 34 buys and four strong buys, with an average 12-month price target of about $96.65. However, several firms recently lowered their targets, and Goldman Sachs downgraded the stock to “sell.”
• Recent results were broadly solid: Netflix reported quarterly EPS of $0.80 versus the $0.79 consensus estimate, while revenue reached $12.56 billion and rose 13.4% year over year, narrowly missing expectations.
• Shares and ownership trends bear watching: Netflix opened at $81.05, below its 200-day moving average of $84.34, while insiders sold roughly $15.8 million of stock during the last quarter. Institutional investors own 80.93% of the shares, indicating substantial involvement from major funds.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the fifty-five brokerages that are currently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, sixteen have issued a hold rating, thirty-four have issued a buy rating and four have assigned a strong buy rating to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $96.6524.

A number of research analysts have weighed in on the company. Piper Sandler reiterated an "overweight" rating and set a $85.00 target price (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Bank of America dropped their price target on Netflix from $125.00 to $105.00 and set a "buy" rating on the stock in a research report on Friday, July 17th. Rothschild & Co Redburn reduced their price target on Netflix from $120.00 to $93.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. The Goldman Sachs Group downgraded Netflix from an "underweight" rating to a "sell" rating in a report on Monday, July 20th. Finally, Jefferies Financial Group lowered their price objective on Netflix from $110.00 to $90.00 and set a "buy" rating for the company in a research report on Friday, July 17th.

Netflix Trading Down 0.8%

NASDAQ:NFLX opened at $81.05 on Tuesday. The company has a 50-day moving average price of $74.81 and a 200-day moving average price of $84.34. Netflix has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock has a market cap of $337.49 billion, a price-to-earnings ratio of 25.51, a P/E/G ratio of 1.03 and a beta of 1.52.

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

Insiders Place Their Bets

In related news, CEO Gregory K. Peters sold 27,312 shares of the firm'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 transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares of the company's stock, valued at $8,893,265.74. This trade represents a 18.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction 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 transaction, the chief executive officer owned 178,954 shares of the company's stock, valued at $13,126,275.90. The trade was a 13.24% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last quarter, insiders have sold 213,595 shares of company stock valued at $15,812,072. Insiders own 1.24% of the company's stock.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently modified their holdings of NFLX. California State Teachers Retirement System lifted its stake in shares of Netflix by 7,028.2% in the second quarter. California State Teachers Retirement System now owns 458,934,710 shares of the Internet television network's stock worth $32,767,938,000 after buying an additional 452,496,424 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Netflix during the second quarter valued at approximately $24,902,221,000. State Street Corp raised its holdings in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC raised its holdings in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Finally, Capital World Investors lifted its position in Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Potentially attractive valuation: Netflix and Meta both delivered strong second-quarter 2026 revenue growth, but the market selloff has left Netflix looking like the steadier long-term compounder. The company’s recurring subscription revenue and improving profitability could support a recovery if execution remains strong. Netflix vs. Meta: The Better Media Stock May Surprise You
• Positive Sentiment: Long-term bull case: The stock’s decline of more than 30% over the past year contrasts with continued double-digit revenue growth. That disconnect has attracted renewed interest from a major billionaire investor, suggesting some investors view the weakness as a buying opportunity. The Bull Case for Netflix Stock Is Stronger Than You Think
• Positive Sentiment: Gaming and broader entertainment expansion: Netflix is increasing player engagement and using the anticipated Grand Theft Auto VI release to attract gamers. Live sports, scheduled programming and ad-supported content could expand audience reach and create additional monetization opportunities. Can Gaming Become the Next Revenue Pillar for Netflix Stock?
• Neutral Sentiment: Evidence of historical resilience: Netflix has recovered and eventually reached new highs after each of seven historical declines exceeding 40%. Shares have also rebounded materially in recent weeks, though past recoveries do not guarantee another one. Netflix Has Fallen More Than 40% 7 Times in Its History
• Neutral Sentiment: Investor caution remains: Jim Cramer described Netflix as “a buy, not a huge buy” after the sharp annual decline, reflecting confidence in the business but limited conviction that a major rebound is imminent. Jim Cramer Calls Netflix “A Buy, Not a Huge Buy”
• Negative Sentiment: New initiatives carry execution risk: Gaming remains an unquantified revenue source, while live programming, advertising and the hybrid-TV strategy require additional investment and have yet to prove they can materially accelerate earnings. Netflix Is Recasting Itself As A Hybrid TV Platform

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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