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

Key Points

• Analyst consensus: Fifty analysts give Netflix an average rating of "Moderate Buy" (35 buys, 13 holds, 2 strong buys) with a mean 12‑month target price of $114.57.
• Headline catalysts are mixed: recent subscription price increases and institutional buying (and some price‑target raises) support near‑term upside, while an Italian court ordering refunds for past price‑hike clauses and large insider sales (≈1.54M shares, ~$141M last quarter) pose legal and sentiment risks.
• Recent results show modest outperformance—Q4 EPS $0.56 vs $0.55 expected and revenue $12.05B (up 17.6% y/y)—with Q1 guidance at $0.76; the stock trades at a market cap of ~$416.6B and a trailing P/E of ~39.04.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) have been given an average rating of "Moderate Buy" by the fifty analysts that are covering the firm, Marketbeat.com reports. Thirteen research analysts have rated the stock with a hold recommendation, thirty-five have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $114.57.

NFLX has been the subject of a number of research analyst reports. Morgan Stanley set a $110.00 price target on Netflix and gave the stock an "overweight" rating in a research note on Wednesday, January 21st. Freedom Capital upgraded shares of Netflix from a "hold" rating to a "strong-buy" rating in a report on Tuesday, January 27th. UBS Group set a $104.00 target price on shares of Netflix in a research report on Tuesday, January 27th. Oppenheimer lifted their target price on shares of Netflix from $125.00 to $135.00 and gave the company an "outperform" rating in a research note on Friday, March 27th. Finally, Sanford C. Bernstein reiterated a "buy" rating on shares of Netflix in a research report on Wednesday, February 18th.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Recent subscription price increases are expected to lift ARPU and near‑term revenue, and most analysts/media expect limited churn — this supports earnings upside. Netflix Is Raising Prices Again: What It Means for Investors
• Positive Sentiment: Large institutional buying and some price‑target lifts (one firm raised NFLX to $134) provide demand/support beneath the share price, signaling confidence from major investors and some analysts. Netflix NASDAQ: NFLX Price Target Raised to $134.00
• Neutral Sentiment: Options and near‑term earnings positioning: traders are pricing a meaningful move into Q1 results (options strategies like iron condors are being discussed) — raises short‑term volatility but not directional conviction for the stock itself. Trade Netflix Stock with This Iron Condor Strategy to See a 23% Return in Just 3 Weeks
• Neutral Sentiment: New commercial distribution deals (e.g., EverPass for a major boxing event) slightly expand non‑subscription revenue channels but are modest relative to core business. EverPass Media Expands Relationship with Netflix
• Negative Sentiment: Italian court ruled Netflix’s 2017–2024 price‑hike clauses void and ordered refunds to subscribers — this creates potential one‑time liability, reputational risk in Europe and could spur similar claims elsewhere. Netflix will appeal. Italian court rules Netflix price‑hike clauses are void, orders refunds
• Negative Sentiment: Board chair Reed Hastings sold ~420,550 shares under a pre‑arranged 10b5‑1 plan (≈$40M) — large insider sales can spook some investors even if pre‑planned, since they reduce insider exposure. Reed Hastings Sells 420,550 Shares of Netflix NASDAQ: NFLX Stock
• Negative Sentiment: Deal speculation (a reported US$42.2B Warner‑style acquisition) and commentary about derating/ acquisition concerns pressure views on capital discipline and potential leverage — raises risk premium if pursued. Netflix’s US$42.2b Warner Bros. Deal Tests Growth And Discipline

Insider Buying and Selling

In related news, insider David A. Hyman sold 23,439 shares of the business's stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $88.11, for a total transaction of $2,065,210.29. Following the sale, the insider owned 316,100 shares of the company's stock, valued at $27,851,571. The trade was a 6.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Gregory K. Peters sold 105,781 shares of the company's stock in a transaction dated Thursday, January 29th. The stock was sold at an average price of $82.94, for a total transaction of $8,773,476.14. Following the completion of the sale, the chief executive officer owned 122,140 shares in the company, valued at approximately $10,130,291.60. This trade represents a 46.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,543,023 shares of company stock worth $141,145,842 over the last quarter. Company insiders own 1.37% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Financial Corp IN increased its stake in Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its holdings in Netflix by 885.2% in the fourth 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. lifted 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 worth $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC bought a new position in Netflix in the third quarter worth approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in Netflix during the fourth quarter valued at $26,000. Institutional investors own 80.93% of the company's stock.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $98.66 on Friday. The stock's 50-day moving average is $88.28 and its 200 day moving average is $99.86. The company has a market cap of $416.56 billion, a PE ratio of 39.04, a P/E/G ratio of 1.50 and a beta of 1.67. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19. Netflix has a 1 year low of $75.01 and a 1 year high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. The business had revenue of $12.05 billion during the quarter, compared to analysts' expectations of $11.97 billion. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The business's revenue was up 17.6% on a year-over-year basis. During the same quarter last year, the business posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Sell-side analysts anticipate that Netflix will post 24.58 EPS for the current year.

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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