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

Key Points

• Netflix has a consensus analyst rating of “Moderate Buy” from 52 brokerages, with 34 buy ratings and an average 1-year price target of about $114.26.
• Recent analyst actions have been mixed but generally constructive, including upgrades from Goldman Sachs and Huber Research, while Erste Group downgraded the stock and Seaport lifted its price target to $119.
• Insider activity has been heavy on the selling side: Director Reed Hastings and CFO Spencer Adam Neumann both sold shares, and insiders have sold 1.31 million shares over the past 90 days.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) has earned an average recommendation of "Moderate Buy" from the fifty-two brokerages that are presently covering the company, Marketbeat reports. Sixteen research analysts have rated the stock with a hold recommendation, thirty-four have given a buy recommendation and two have given a strong buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $114.2634.

Several analysts have recently issued reports on the company. Erste Group Bank cut Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Seaport Research Partners increased their price objective on Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a research note on Friday, April 17th. The Goldman Sachs Group upgraded Netflix from a "neutral" rating to a "buy" rating in a research note on Monday, April 13th. Huber Research upgraded Netflix from a "strong sell" rating to a "strong-buy" rating in a research note on Friday, February 27th. Finally, Barclays set a $110.00 price objective on Netflix and gave the company an "equal weight" rating in a research note on Friday, April 17th.

Insiders Place Their Bets

In other Netflix news, Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director directly owned 3,940 shares in the company, valued at $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the firm's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 1,313,029 shares of company stock valued at $120,315,776. 1.24% of the stock is owned by company insiders.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Militia Capital Management LLC acquired a new stake in Netflix in the first quarter valued at $590,000. FAS Wealth Partners Inc. raised its stake in Netflix by 2.7% in the first quarter. FAS Wealth Partners Inc. now owns 12,140 shares of the Internet television network's stock valued at $1,167,000 after buying an additional 320 shares in the last quarter. Rathbones Group PLC raised its stake in Netflix by 53.7% in the first quarter. Rathbones Group PLC now owns 1,266,693 shares of the Internet television network's stock valued at $121,793,000 after buying an additional 442,520 shares in the last quarter. Robinswood Financial LLC acquired a new stake in Netflix in the first quarter valued at $62,000. Finally, Pine Valley Investments Ltd Liability Co raised its stake in Netflix by 35.3% in the first quarter. Pine Valley Investments Ltd Liability Co now owns 68,837 shares of the Internet television network's stock valued at $6,619,000 after buying an additional 17,964 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some market watchers say Netflix’s sharp selloff may be nearing a bottom, with technical commentary suggesting the stock could be stabilizing after a steep two-month decline.
• Neutral Sentiment: MoffettNathanson cut its price target on Netflix from $120 to $115 but kept a buy rating, signaling continued long-term confidence despite near-term pressure.
• Negative Sentiment: Netflix’s refusal to pursue Lionsgate, combined with the Fox-Roku deal, has fueled concerns that it is losing ground in the sector’s consolidation race and may face more competition around distribution and ad-supported growth.
• Negative Sentiment: Netflix also canceled The Boroughs after one season, a reminder that some content investments are still being pruned as the company remains selective on spending.

Netflix Trading Down 2.2%

NFLX opened at $76.96 on Thursday. Netflix has a 52 week low of $75.01 and a 52 week high of $134.12. The business has a fifty day simple moving average of $89.75 and a 200-day simple moving average of $90.44. The firm has a market cap of $324.06 billion, a P/E ratio of 24.86, a P/E/G ratio of 1.00 and a beta of 1.50. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company's quarterly revenue was up 16.2% on a year-over-year basis. During the same period last year, the business posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts expect that Netflix will post 3.6 earnings per share 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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