Netflix (NASDAQ:NFLX) Earns "Buy" Rating from Guggenheim

Key Points

• Guggenheim reaffirmed a Buy rating on Netflix with a $120 price target, implying about 38% upside from the current share price at the time of the report.
• Overall Wall Street sentiment remains constructive: Netflix has two Strong Buy ratings, 34 Buy ratings, and 16 Hold ratings, with a consensus Moderate Buy and an average target price of $114.82.
• Netflix’s latest quarter topped expectations, with EPS of $1.23 versus $0.76 expected and revenue up 16.2% year over year, even as insiders including the CFO and CEO sold shares in May.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reaffirmed by stock analysts at Guggenheim in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $120.00 target price on the Internet television network's stock. Guggenheim's price objective would suggest a potential upside of 38.03% from the stock's current price.

Several other equities analysts also recently issued reports on the company. Rothschild & Co Redburn set a $120.00 target price on Netflix in a research report on Wednesday, January 21st. Susquehanna upgraded Netflix to a "positive" rating and set a $112.00 price target on the stock in a research note on Wednesday, January 21st. Bank of America cut their price objective on Netflix from $149.00 to $125.00 and set a "buy" rating on the stock in a report on Friday, March 6th. Loop Capital set a $104.00 price objective on Netflix in a research note on Tuesday, January 27th. Finally, BMO Capital Markets dropped their target price on Netflix from $143.00 to $135.00 and set an "outperform" rating on the stock in a research report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $114.82.

Netflix Stock Down 0.7%

NFLX stock opened at $86.94 on Friday. The firm has a 50 day moving average of $94.98 and a 200 day moving average of $94.94. The stock has a market capitalization of $366.09 billion, a PE ratio of 28.08, a price-to-earnings-growth ratio of 1.11 and a beta of 1.55. 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 has a 52 week low of $75.01 and a 52 week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last issued 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 analyst estimates of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. Netflix's revenue for the quarter was up 16.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Sell-side analysts forecast that Netflix will post 3.6 earnings per share for the current year.

Insider Transactions at Netflix

In related news, CFO Spencer Adam Neumann sold 9,253 shares of the firm's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total transaction of $823,054.35. Following the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.69, for a total value of $2,422,301.28. Following the transaction, the chief executive officer owned 120,931 shares of the company's stock, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,422,769 shares of company stock valued at $135,144,073. 1.37% of the stock is owned by insiders.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. First Financial Corp IN raised its holdings in Netflix by 900.0% in the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock worth $25,000 after purchasing an additional 243 shares during the period. DiNuzzo Private Wealth Inc. increased its position in shares of 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 buying an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. raised its stake in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock worth $25,000 after buying an additional 268 shares during the period. Imprint Wealth LLC acquired a new position in shares of Netflix during the 3rd quarter worth approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in shares of Netflix during the 4th quarter valued at approximately $26,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Sanford C. Bernstein reaffirmed a Buy rating on Netflix, adding to a string of constructive analyst calls that also highlighted the company’s expanding ad tier, strong engagement, and improving monetization prospects. Netflix NASDAQ: NFLX Receives "Buy" Rating from Sanford C. Bernstein
• Positive Sentiment: Netflix and the NFL extended their partnership through the 2029-30 season, with Netflix adding more games to its live-sports lineup. That supports the bull case that NFLX can keep growing viewership, ad inventory, and subscription value through premium live events. Netflix, NFL extend current deal through 2029-30 season - NBC Sports
• Positive Sentiment: JPMorgan and other firms reiterated positive views after Netflix’s upfront presentation, citing its reach, content strategy, and ad-tech progress. Several pieces also pointed to Netflix’s move toward becoming “Global TV,” which could support longer-term revenue growth. Netflix Gains Speed in Race for Global TV Dominance; NFLX Stock Drops
• Positive Sentiment: Netflix announced more fan-driven entertainment tie-ins, including a global concert tour for KPop Demon Hunters and other live-event expansions. These moves reinforce the company’s ability to turn hit content into additional monetization opportunities. Netflix Announces ‘KPop Demon Hunters' Is Going On Tour

About Netflix

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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