Netflix (NASDAQ:NFLX) Downgraded by Zacks Research to Hold

Key Points

• Netflix has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, indicating a change in analyst sentiment regarding the company's stock.
• Barclays has set a target price of $1,100.00 for Netflix shares, while other firms have provided varying ratings and target prices, resulting in a consensus rating of "Moderate Buy."
• Netflix's latest quarterly earnings report showed $7.19 earnings per share, exceeding analysts' expectations and reflecting a 15.9% revenue growth year-over-year.

Netflix (NASDAQ:NFLX - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

A number of other brokerages also recently weighed in on NFLX. Bank of America boosted their price target on Netflix from $1,175.00 to $1,490.00 and gave the stock a "buy" rating in a research report on Friday, May 30th. The Goldman Sachs Group upped their target price on Netflix from $1,000.00 to $1,140.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. Oppenheimer upped their target price on Netflix from $1,200.00 to $1,425.00 and gave the company an "outperform" rating in a research report on Thursday, June 12th. Loop Capital reaffirmed a "hold" rating on shares of Netflix in a research report on Tuesday, July 15th. Finally, Barclays reaffirmed a "sell" rating and issued a $1,100.00 target price (up previously from $1,000.00) on shares of Netflix in a research report on Wednesday, July 9th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,317.58.

Netflix Stock Down 1.1%

Shares of NASDAQ:NFLX traded down $13.66 during midday trading on Monday, reaching $1,243.82. The company had a trading volume of 2,378,410 shares, compared to its average volume of 2,541,951. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.58. The business's 50 day moving average price is $1,225.36 and its 200 day moving average price is $1,123.79. The stock has a market cap of $528.53 billion, a PE ratio of 53.00, a P/E/G ratio of 2.12 and a beta of 1.60. Netflix has a 1-year low of $660.80 and a 1-year high of $1,341.15.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $7.07 by $0.12. The business had revenue of $11.08 billion for the quarter, compared to the consensus estimate of $11.04 billion. Netflix had a return on equity of 42.50% and a net margin of 24.58%.Netflix's quarterly revenue was up 15.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. Research analysts forecast that Netflix will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other Netflix news, Director Reed Hastings sold 25,959 shares of the company's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $1,207.71, for a total transaction of $31,350,943.89. Following the completion of the sale, the director directly owned 394 shares in the company, valued at $475,837.74. This represents a 98.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Gregory K. Peters sold 2,026 shares of the company's stock in a transaction on 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 sale, the chief executive officer owned 12,781 shares of the company's stock, valued at $14,793,240.64. The trade was a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 89,348 shares of company stock valued at $109,498,489 in the last quarter. Company insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in NFLX. Halbert Hargrove Global Advisors LLC increased its holdings in shares of Netflix by 100.0% during the first quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock worth $25,000 after buying an additional 13 shares in the last quarter. Brown Shipley& Co Ltd acquired a new position in shares of Netflix during the fourth quarter worth $27,000. Legacy Investment Solutions LLC acquired a new position in shares of Netflix during the second quarter worth $31,000. Stephens Consulting LLC increased its holdings in shares of Netflix by 150.0% during the second quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock worth $33,000 after buying an additional 15 shares in the last quarter. Finally, Rossby Financial LCC acquired a new position in shares of Netflix during the second quarter worth $35,000. 80.93% of the stock is currently owned by institutional investors.

Netflix Company Profile

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.