Jefferies Financial Group Lowers Netflix (NASDAQ:NFLX) Price Target to $128.00

Key Points

• Jefferies cut its price target on Netflix to $128 from $134 but maintained a "buy" rating, implying roughly a 33% upside from the prior close.
• Q1 beat: Netflix reported $1.23 EPS and $12.25B revenue, exceeding estimates with margin expansion, but delivered cautious Q2 guidance of $0.78 EPS that weighed on the stock.
• Governance and insider moves: Co‑founder Reed Hastings will not stand for re‑election to the board and insiders sold substantial shares recently, adding transition and sentiment risk despite a consensus "Moderate Buy" rating and a $114.82 average price target.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price cut by equities research analysts at Jefferies Financial Group from $134.00 to $128.00 in a report released on Friday,MarketScreener reports. The firm presently has a "buy" rating on the Internet television network's stock. Jefferies Financial Group's target price suggests a potential upside of 33.02% from the stock's previous close.

Several other brokerages have also recently issued reports on NFLX. Citizens Jmp reaffirmed a "market perform" rating on shares of Netflix in a report on Wednesday. Oppenheimer set a $120.00 price objective on Netflix in a research report on Friday. Barclays set a $110.00 target price on Netflix in a report on Friday. Citigroup assumed coverage on Netflix in a research report on Thursday. They set a "market perform" rating on the stock. Finally, Robert W. Baird decreased their target price on Netflix from $150.00 to $120.00 and set an "outperform" rating for the company in a research report on Friday, January 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $114.82.

Netflix Stock Performance

NASDAQ NFLX opened at $96.23 on Friday. Netflix has a 12-month low of $75.01 and a 12-month high of $134.12. The company has a 50-day simple moving average of $91.90 and a two-hundred day simple moving average of $98.56. 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 firm has a market cap of $406.29 billion, a price-to-earnings ratio of 42.66, a PEG ratio of 1.58 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.47. The firm had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company's revenue was up 16.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts forecast that Netflix will post 24.58 EPS for the current year.

Insider Activity

In other news, CEO Gregory K. Peters sold 105,781 shares of the business's stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $82.94, for a total value of $8,773,476.14. Following the transaction, the chief executive officer directly owned 122,140 shares in the company, valued at $10,130,291.60. The trade was a 46.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider David A. Hyman sold 5,727 shares of the business's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the completion of the transaction, the insider directly owned 316,100 shares in the company, valued at approximately $25,623,066. This represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,487,794 shares of company stock worth $136,255,772 in the last quarter. Corporate insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Natural Investments LLC boosted its stake in Netflix by 0.5% during the third quarter. Natural Investments LLC now owns 1,668 shares of the Internet television network's stock valued at $1,999,000 after buying an additional 9 shares during the last quarter. Hengehold Capital Management LLC increased its stake in Netflix by 3.3% in the 3rd quarter. Hengehold Capital Management LLC now owns 282 shares of the Internet television network's stock worth $338,000 after acquiring an additional 9 shares during the last quarter. Financial Partners Group Inc increased its stake in Netflix by 0.9% in the 3rd quarter. Financial Partners Group Inc now owns 969 shares of the Internet television network's stock worth $1,162,000 after acquiring an additional 9 shares during the last quarter. Seascape Capital Management raised its holdings in shares of Netflix by 1.6% during the 3rd quarter. Seascape Capital Management now owns 568 shares of the Internet television network's stock worth $681,000 after acquiring an additional 9 shares in the last quarter. Finally, Crews Bank & Trust raised its holdings in shares of Netflix by 5.8% during the 3rd quarter. Crews Bank & Trust now owns 164 shares of the Internet television network's stock worth $197,000 after acquiring an additional 9 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q1 beat: Netflix reported $1.23 EPS and $12.25B revenue, both above consensus, with strong cash flow and margin expansion — evidence the core business is still generating robust profits. Earnings Transcript
• Positive Sentiment: Monetization tailwinds: Management highlighted price increases and growing ad revenues as durable profit drivers, which support longer‑term margin upside even if near‑term guidance is cautious. MarketWatch: Profit Boost
• Positive Sentiment: Some analysts see the sell‑off as a buying opportunity — firms including Needham and TD Cowen kept bullish views, calling the pullback a chance to buy exposure to ad growth and pricing leverage. Analyst Buy Views
• Neutral Sentiment: Full‑year outlook left broadly unchanged — management reiterated longer‑term targets even as it trimmed near‑term cadence, so the pullback centers on timing rather than an admission of structural decline. Yahoo: Full‑Year Outlook
• Negative Sentiment: Weaker Q2 guidance: Netflix set Q2 EPS guidance at $0.78 and revenue around $12.57B — slightly below Street revenue/margin expectations and cited lower year‑over‑year operating margin, which triggered the sell‑off. Financial Post: Guidance Miss
• Negative Sentiment: Leadership change: Co‑founder and chairman Reed Hastings will not stand for re‑election to the board in June — investors see timing as awkward coming with softer near‑term guidance, increasing governance/transition risk. Reuters: Hastings Exit
• Negative Sentiment: Analyst downgrade/target cuts add pressure: Rosenblatt trimmed its target to $95 with a Neutral rating and several firms issued cautious notes — amplifying downside in the immediate term. Benzinga: Rosenblatt Cut

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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