Netflix (NASDAQ:NFLX) Earns "Buy" Rating from DZ Bank

Key Points

• Q1 beat: Netflix reported $1.23 EPS and $12.25B revenue, topping estimates, but issued cautious Q2 guidance (EPS $0.78) and disclosed Reed Hastings won't stand for re‑election, contributing to roughly a 10.7% stock drop.
• Analyst outlook: DZ Bank reissued a Buy rating and MarketBeat shows an overall average rating of “Moderate Buy” with an average price target of $114.82.
• Insider activity: Executives have been selling shares recently, including CFO Spencer Neumann's 57,260‑share sale, with insiders offloading about 1.49 million shares (~$136.3M) over the past 90 days.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at DZ Bank in a note issued to investors on Friday,MarketScreener reports.

Several other research analysts have also commented on the company. TD Cowen lowered their price target on Netflix from $115.00 to $112.00 and set a "buy" rating for the company in a research report on Wednesday, January 21st. Argus lowered their target price on Netflix from $141.00 to $110.00 and set a "buy" rating for the company in a report on Thursday, January 22nd. Phillip Securities upgraded shares of Netflix from a "sell" rating to a "moderate buy" rating and boosted their price target for the stock from $95.00 to $100.00 in a research note on Monday, January 26th. Erste Group Bank raised shares of Netflix from a "hold" rating to a "buy" rating in a research report on Tuesday, March 24th. Finally, Oppenheimer set a $120.00 price objective on shares of Netflix in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat, Netflix has an average rating of "Moderate Buy" and an average price target of $114.82.

Netflix Trading Down 10.7%

Shares of NFLX opened at $96.23 on Friday. Netflix has a 52-week low of $75.01 and a 52-week high of $134.12. The stock has a market cap of $406.29 billion, a PE ratio of 42.66, a price-to-earnings-growth ratio of 1.58 and a beta of 1.67. The firm's fifty day moving average is $91.90 and its two-hundred day moving average is $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.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The business 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 business's revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the firm earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Research analysts forecast that Netflix will post 24.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Netflix news, CFO Spencer Adam Neumann sold 57,260 shares of the stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $95.50, for a total value of $5,468,330.00. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $7,046,658.50. This represents a 43.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider David A. Hyman sold 5,727 shares of the firm'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 transaction of $464,230.62. Following the sale, the insider directly owned 316,100 shares in the company, valued at approximately $25,623,066. The trade was a 1.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,487,794 shares of company stock worth $136,255,772. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. First Financial Corp IN boosted its stake in Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its holdings in shares of Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. boosted its position 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 valued at $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC purchased a new position in Netflix during the 3rd quarter worth approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in Netflix during the 4th quarter worth approximately $26,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

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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