Netflix (NASDAQ:NFLX) Given New $85.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. cut its Netflix price target from $118 to $85, while keeping an overweight rating. The new target still implies about 22.5% upside from the prior close.
• Netflix’s latest quarter showed mixed results: EPS slightly beat estimates at $0.80, but revenue came in just below expectations at $12.56 billion. Revenue still rose 13.4% year over year.
• Sentiment on the stock remains cautious, with several analysts lowering targets after earnings and management signaling slower growth and less transparency by reducing viewing-hours reporting. Insiders have also sold shares recently, adding to investor concerns.

Netflix (NASDAQ:NFLX - Get Free Report) had its target price lowered by investment analysts at JPMorgan Chase & Co. from $118.00 to $85.00 in a report issued on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the Internet television network's stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 22.50% from the company's previous close.

Other analysts have also recently issued research reports about the stock. TD Cowen cut their target price on shares of Netflix from $112.00 to $100.00 and set a "buy" rating for the company in a research note on Friday. KGI Securities lowered shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price target on the stock. in a research note on Friday. Citizens Jmp reiterated a "market perform" rating on shares of Netflix in a report on Wednesday, April 15th. Needham & Company LLC reiterated a "buy" rating on shares of Netflix in a research note on Friday, April 17th. Finally, UBS Group reduced their target price on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $103.97.

Netflix Price Performance

Shares of NASDAQ:NFLX traded down $4.96 during midday trading on Friday, reaching $69.39. 98,428,541 shares of the company's stock traded hands, compared to its average volume of 45,549,328. Netflix has a 1 year low of $65.08 and a 1 year high of $126.71. The company has a market cap of $292.19 billion, a P/E ratio of 22.37, a PEG ratio of 0.94 and a beta of 1.52. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The company has a fifty day simple moving average of $80.52 and a two-hundred day simple moving average of $87.03.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The firm's revenue was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.72 EPS. Equities analysts predict that Netflix will post 3.6 EPS for the current fiscal year.

Insider Activity

In related news, Director Reed Hastings sold 407,550 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the completion of the sale, the director owned 3,940 shares of the company's stock, valued at approximately $366,932.20. This represents a 99.04% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the sale, the chief financial officer owned 73,787 shares of the company's stock, valued at approximately $6,563,353.65. The trade was a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 899,839 shares of company stock valued at $80,141,661 in the last ninety days. 1.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. First Financial Corp IN grew its holdings in shares of 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 purchasing an additional 243 shares during the period. DiNuzzo Private Wealth Inc. boosted its holdings in 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 holdings in 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 last quarter. Imprint Wealth LLC purchased a new stake in shares of Netflix in the 3rd quarter valued at approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Netflix in the 4th quarter valued at approximately $26,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix beat EPS but missed revenue expectations and issued Q3 guidance below Wall Street forecasts, disappointing investors looking for stronger near-term growth.
• Negative Sentiment: Management signaled slowing revenue growth and a modest full-year outlook, reinforcing worries that the company’s growth story is cooling.
• Negative Sentiment: Netflix said it will reduce how often it reports viewing-hours data, which investors interpreted as less transparency around subscriber engagement trends.
• Neutral Sentiment: Several analysts cut price targets after the report, but many still maintained buy or hold ratings, suggesting the long-term thesis is intact for some on Wall Street.
• Positive Sentiment: The company continued to post solid profitability, with EPS ahead of estimates and revenue still growing double digits year over year.
• Positive Sentiment: Netflix highlighted longer-term growth initiatives including ads, AI-driven efficiencies, live programming, creator content, and potential new formats to expand monetization.

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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