Netflix (NASDAQ:NFLX) Shares Up 1.4% - Time to Buy?

Key Points

• Shares rose 1.4% to $109.13 on Monday with volume about 24.05M (down ~40% vs. average); the stock trades below its 50‑day ($114.48) and 200‑day ($119.53) moving averages and shows a market cap of $462.4B with a reported P/E of 4.56.
• Netflix reported quarterly EPS of $5.87, beating estimates by $5.18, while revenue of $11.32B slightly missed expectations ($11.52B); revenue was up 17.2% year‑over‑year and net margin stood at 24.05%.
• Analysts have a consensus rating of Moderate Buy with an average price target of $133.90, but there has been significant insider selling recently—about 1.53M shares (~$175.4M) sold last quarter, including transactions by the CEO and Reed Hastings.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) was up 1.4% during trading on Monday . The company traded as high as $109.34 and last traded at $109.13. Approximately 24,050,553 shares traded hands during trading, a decline of 40% from the average daily volume of 39,841,969 shares. The stock had previously closed at $107.58.

Analyst Ratings Changes

A number of equities analysts recently weighed in on NFLX shares. KGI Securities raised shares of Netflix from a "neutral" rating to an "outperform" rating and set a $135.00 price target on the stock in a report on Monday, November 3rd. Needham & Company LLC reiterated a "buy" rating and issued a $150.00 target price on shares of Netflix in a research note on Wednesday, October 22nd. Arete raised their price target on shares of Netflix from $83.30 to $108.40 and gave the stock a "neutral" rating in a research note on Tuesday, October 28th. Weiss Ratings reiterated a "buy (b)" rating on shares of Netflix in a research note on Wednesday, October 8th. Finally, Erste Group Bank lowered Netflix from a "buy" rating to a "hold" rating in a report on Friday, October 31st. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Netflix has a consensus rating of "Moderate Buy" and an average price target of $133.90.

Netflix Trading Up 1.4%

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The firm has a market cap of $462.42 billion, a P/E ratio of 4.56, a P/E/G ratio of 1.91 and a beta of 1.58. The firm has a 50 day simple moving average of $114.48 and a 200 day simple moving average of $119.53.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, beating the consensus estimate of $0.69 by $5.18. The firm had revenue of $11.32 billion for the quarter, compared to analysts' expectations of $11.52 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The company's revenue was up 17.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.54 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS. On average, equities research analysts predict that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Transactions at Netflix

In related news, CEO Theodore A. Sarandos sold 20,270 shares of Netflix stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $109.21, for a total transaction of $2,213,646.16. Following the completion of the sale, the chief executive officer owned 151,680 shares of the company's stock, valued at approximately $16,564,669.44. This trade represents a 11.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Reed Hastings sold 421,760 shares of the company's stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $117.19, for a total value of $49,426,897.92. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at $461,736.48. This represents a 99.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,529,960 shares of company stock valued at $175,427,521. Corporate insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently bought and sold shares of the stock. Imprint Wealth LLC purchased a new position in Netflix in the third quarter worth about $25,000. Retirement Wealth Solutions LLC purchased a new position in Netflix in the 3rd quarter worth approximately $28,000. Steph & Co. raised its holdings in Netflix by 188.9% in the 3rd quarter. Steph & Co. now owns 26 shares of the Internet television network's stock worth $31,000 after acquiring an additional 17 shares during the last quarter. Legacy Investment Solutions LLC bought a new position in Netflix in the 2nd quarter valued at approximately $31,000. Finally, Stephens Consulting LLC boosted its stake in Netflix by 150.0% during the 2nd quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock valued at $33,000 after purchasing an additional 15 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors.

About Netflix

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.

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