Netflix, Inc. (NASDAQ:NFLX) Stock Has Average Target Price of $89.14

Key Points

• Analyst sentiment is moderately positive: 56 analysts give Netflix a consensus “Moderate Buy” rating, with an average 12-month price target of $89.14. Ratings include 35 buys, two strong buys, 17 holds and two sells.
• Netflix shares traded at $62.15, near the reported 1-year low of $61.39 and well below the 1-year high of $115.25. Recent concerns cited include slowing engagement, competition from YouTube and pressure on the company’s content and advertising strategies.
• In its latest reported quarter, Netflix earned $0.87 per share, beating the $0.82 estimate; revenue of $12.87 billion matched expectations and rose 11.9% year over year.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the fifty-six research firms that are presently covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, seventeen have assigned a hold recommendation, thirty-five have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $89.14.

A number of research analysts recently weighed in on NFLX shares. Barclays set a $65.00 price objective on Netflix and gave the stock an "equal weight" rating in a report on Wednesday, October 21st. DZ Bank reaffirmed a "buy" rating on shares of Netflix in a research report on Monday, July 20th. Pivotal Research restated a "hold" rating and issued a $65.00 price target (down from $70.00) on shares of Netflix in a report on Wednesday, October 21st. Argus set a $95.00 price objective on Netflix and gave the company a "buy" rating in a research note on Thursday, October 22nd. Finally, TD Cowen reiterated a "buy" rating and issued a $100.00 target price on shares of Netflix in a research report on Wednesday, October 21st.

Key Headlines Impacting Netflix

These are some of the NFLX headlines that stood out recently:

• Positive Sentiment: Billionaire investor Bill Ackman reiterated his bullish view and called Netflix undervalued, offering a high-profile vote of confidence. Billionaire investor Bill Ackman on why he's staying bullish on Netflix
• Neutral Sentiment: An analyst floated a possible channel store or Fox One bundle. Bundling could help subscriber retention and reduce churn, but the idea remains speculative. Netflix May Launch Channel Store Or Bundle With Fox One: Analyst
• Negative Sentiment: Recent reports cite slowing engagement, YouTube competition, a costly content strategy, a scrapped Warner Bros. deal, and a stalled ad push. One article says the stock has fallen 53% from its June 2025 peak, reflecting damaged investor confidence. Netflix Wipes Out Five Years of Gains

Netflix Price Performance

Shares of Netflix stock traded down $0.54 on Friday, hitting $62.15. 36,558,372 shares of the company were exchanged, compared to its average volume of 46,146,632. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43. Netflix has a 1-year low of $61.39 and a 1-year high of $115.25. The company has a 50-day moving average price of $69.18 and a 200 day moving average price of $80.42. The stock has a market capitalization of $255.21 billion, a price-to-earnings ratio of 17.96, a price-to-earnings-growth ratio of 0.92 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.05. The firm had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The firm's revenue for the quarter was up 11.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.59 EPS. As a group, sell-side analysts predict that Netflix will post 3.59 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In other Netflix news, CEO Theodore Sarandos sold 27,312 shares of the firm's stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $66.20, for a total value of $1,808,054.40. Following the sale, the chief executive officer owned 178,954 shares in the company, valued at approximately $11,846,754.80. This trade represents a 13.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Peters sold 27,312 shares of the firm's stock in a transaction on Monday, November 9th. The shares were sold at an average price of $63.62, for a total value of $1,737,589.44. Following the transaction, the chief executive officer directly owned 119,412 shares in the company, valued at $7,596,991.44. This trade represents a 18.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 89,024 shares of company stock worth $5,788,733 over the last 90 days. Corporate insiders own 1.24% of the company's stock.

Institutional Trading of Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in Netflix in the 2nd quarter worth approximately $24,902,221,000. State Street Corp raised its holdings in shares of Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock worth $12,861,252,000 after acquiring an additional 8,474,820 shares in the last quarter. Bank of America Corp DE raised its holdings in shares of Netflix by 4.3% during the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock worth $5,571,201,000 after acquiring an additional 2,376,349 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Netflix during the 2nd quarter worth about $1,906,482,000. Finally, Legal & General Group Plc acquired a new stake in shares of Netflix during the 2nd quarter valued at about $1,886,526,000. 80.93% of the stock is owned by institutional investors and hedge funds.

About Netflix

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.

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.