JPMorgan Chase & Co. Issues Pessimistic Forecast for Netflix (NASDAQ:NFLX) Stock Price

Key Points

• JPMorgan Chase & Co. has reduced its target price for Netflix from $1,300 to $1,275, maintaining a "neutral" rating, indicating a potential upside of 12.30% from the current trading price.
• Netflix's stock has recently experienced a decline, trading down 8.5% to $1,135.33, significantly underperforming with reported earnings of $5.87 per share for the last quarter, missing estimates by $1.01.
• Despite mixed analyst ratings, Netflix holds a consensus rating of "Moderate Buy" with an average target price of $1,344.34, and has seen substantial insider selling, with executives recently offloading shares worth over $122 million.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price cut by investment analysts at JPMorgan Chase & Co. from $1,300.00 to $1,275.00 in a report released on Wednesday,MarketScreener reports. The brokerage currently has a "neutral" rating on the Internet television network's stock. JPMorgan Chase & Co.'s target price indicates a potential upside of 12.30% from the stock's current price.

A number of other equities analysts also recently commented on NFLX. Weiss Ratings restated a "buy (b)" rating on shares of Netflix in a report on Wednesday, October 8th. Phillip Securities downgraded shares of Netflix from a "hold" rating to a "strong sell" rating in a research report on Monday, July 21st. Wells Fargo & Company lifted their price target on shares of Netflix from $1,500.00 to $1,560.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. Itau BBA Securities assumed coverage on shares of Netflix in a research note on Tuesday, October 7th. They set an "outperform" rating and a $1,514.00 target price for the company. Finally, Morgan Stanley set a $1,500.00 target price on Netflix in a report on Monday, October 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Netflix presently has a consensus rating of "Moderate Buy" and an average target price of $1,344.34.

Netflix Trading Down 8.5%

NFLX stock traded down $106.02 during midday trading on Wednesday, hitting $1,135.33. The company had a trading volume of 2,821,901 shares, compared to its average volume of 3,899,614. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58. Netflix has a 52 week low of $744.26 and a 52 week high of $1,341.15. The stock's 50 day moving average price is $1,214.20 and its 200 day moving average price is $1,182.49. The stock has a market cap of $482.43 billion, a price-to-earnings ratio of 48.39, a PEG ratio of 2.08 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, missing the consensus estimate of $6.88 by ($1.01). The company had revenue of $11.51 billion during the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The business's revenue for the quarter was up 17.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $5.40 EPS. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS. As a group, equities research analysts expect that Netflix will post 24.58 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Netflix news, Director Reed Hastings sold 42,176 shares of the stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $1,171.92, for a total value of $49,426,897.92. Following the transaction, the director owned 394 shares of the company's stock, valued at approximately $461,736.48. This represents a 99.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Gregory K. Peters sold 2,026 shares of the firm's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $1,157.44, for a total value of $2,344,973.44. Following the completion of the transaction, the chief executive officer directly owned 12,781 shares in the company, valued at $14,793,240.64. This trade 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 valued at $122,710,980 in the last 90 days. Insiders own 1.37% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in NFLX. Norges Bank bought a new position in shares of Netflix in the second quarter worth about $7,929,645,000. Laurel Wealth Advisors LLC raised its stake in shares of Netflix by 128,553.9% in the second quarter. Laurel Wealth Advisors LLC now owns 4,881,129 shares of the Internet television network's stock worth $6,536,466,000 after buying an additional 4,877,335 shares during the period. Nuveen LLC bought a new position in shares of Netflix in the first quarter worth about $2,385,585,000. Kingstone Capital Partners Texas LLC raised its stake in shares of Netflix by 343,058.2% in the second quarter. Kingstone Capital Partners Texas LLC now owns 2,463,876 shares of the Internet television network's stock worth $3,299,450,000 after buying an additional 2,463,158 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake in shares of Netflix by 57.3% in the first quarter. Goldman Sachs Group Inc. now owns 3,393,064 shares of the Internet television network's stock worth $3,164,134,000 after buying an additional 1,236,251 shares during the period. Institutional investors own 80.93% of the company's stock.

About Netflix

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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