Netflix (NASDAQ:NFLX) Stock Rating Lowered by Erste Group Bank

Key Points

• Erste Group Bank downgraded Netflix from a "buy" to a "hold," though other firms (Goldman Sachs, KeyCorp, Seaport, President Capital) have recent buy/upgraded views and the consensus remains a Moderate Buy with a $114.82 target.
• Netflix reported Q1 EPS of $1.23 (vs. $0.76 est.) and revenue of $12.25 billion (vs. $12.17B est.), with a 28.5% net margin and Q2 2026 guidance of $0.78 EPS; analysts expect about $3.53 EPS for the fiscal year.
• Shares traded at $92.04 (down 0.4%) as insiders sold roughly 1.49 million shares (~$136M) in the past 90 days, even as major institutions massively increased positions and institutional owners now hold about 80.9% of the stock.

Netflix (NASDAQ:NFLX - Get Free Report) was downgraded by analysts at Erste Group Bank from a "buy" rating to a "hold" rating in a note issued to investors on Monday,Finviz reports.

NFLX has been the subject of several other research reports. The Goldman Sachs Group upgraded Netflix from a "neutral" rating to a "buy" rating in a report on Monday, April 13th. Wells Fargo & Company began coverage on Netflix in a report on Monday, March 9th. They set an "equal weight" rating and a $105.00 price objective for the company. KeyCorp restated an "overweight" rating and set a $115.00 price objective (up from $108.00) on shares of Netflix in a report on Tuesday, April 14th. Seaport Research Partners boosted their price objective on Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a report on Friday, April 17th. Finally, President Capital boosted their price objective on Netflix from $133.00 to $134.00 and gave the company a "buy" rating in a report on Tuesday, March 31st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and fifteen have issued a Hold rating to the stock. According to MarketBeat, Netflix presently has a consensus rating of "Moderate Buy" and a consensus target price of $114.82.

Netflix Stock Down 0.4%

Shares of Netflix stock traded down $0.40 during trading on Monday, reaching $92.04. 3,132,824 shares of the company traded hands, compared to its average volume of 47,870,352. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. Netflix has a 1-year low of $75.01 and a 1-year high of $134.12. The company has a 50 day moving average price of $93.60 and a 200-day moving average price of $97.57. The firm has a market capitalization of $387.57 billion, a PE ratio of 29.72, a P/E/G ratio of 1.20 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last released its 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 company had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. Netflix's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities research analysts expect that Netflix will post 3.53 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider David A. Hyman sold 5,727 shares of Netflix 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 transaction, the insider owned 316,100 shares of the company's stock, valued at $25,623,066. The trade was a 1.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Gregory K. Peters sold 105,781 shares of Netflix stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $82.94, for a total value of $8,773,476.14. Following the transaction, the chief executive officer directly owned 122,140 shares in the company, valued at approximately $10,130,291.60. The trade was a 46.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 1,487,794 shares of company stock worth $136,255,772 in the last ninety days. Corporate insiders own 1.37% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp boosted its position in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC boosted its position in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors boosted its position in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its position in Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

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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