Netflix (NASDAQ:NFLX) Trading 2.7% Higher on Analyst Upgrade

Key Points

• Morgan Stanley raised its price target on Netflix to $115 (keeps an overweight rating), and the stock climbed about 2.7% intraday to roughly $102.05 with volume ~28% below average.
• Analysts have a consensus of Moderate Buy on NFLX with an average price target of $115.22 (2 Strong Buy, 36 Buy, 12 Hold), reflecting broadly bullish sentiment and recent price‑target lifts from multiple firms.
• Large institutional buying surged in Q4—Vanguard, State Street, Geode, Capital World and Morgan Stanley all massively increased positions (900%+ changes reported), leaving institutions owning about 80.93% of the stock.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) was up 2.7% during trading on Thursday after Morgan Stanley raised their price target on the stock from $110.00 to $115.00. Morgan Stanley currently has an overweight rating on the stock. Netflix traded as high as $102.34 and last traded at $102.05. Approximately 34,711,720 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 48,222,934 shares. The stock had previously closed at $99.39.

NFLX has been the topic of a number of other research reports. Benchmark reissued a "hold" rating on shares of Netflix in a report on Tuesday, January 13th. Barclays initiated coverage on Netflix in a report on Monday, March 2nd. They set an "equal weight" rating and a $115.00 target price for the company. BMO Capital Markets cut their price target on Netflix from $143.00 to $135.00 and set an "outperform" rating on the stock in a report on Wednesday, January 21st. Robert W. Baird reduced their price objective on Netflix from $150.00 to $120.00 and set an "outperform" rating for the company in a research report on Friday, January 23rd. Finally, Canaccord Genuity Group set a $125.00 price objective on Netflix and gave the stock a "buy" rating in a research note on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $115.22.

Insider Buying and Selling

In related news, insider David A. Hyman sold 5,727 shares of the stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the completion of the transaction, the insider directly owned 316,100 shares of the company's stock, valued at $25,623,066. This represents a 1.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Cletus R. Willems sold 3,136 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $82.67, for a total value of $259,253.12. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,543,023 shares of company stock valued at $141,145,842 in the last ninety days. Insiders own 1.37% of the company's stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Deal risk removed — commentary and analyst notes argue Netflix’s decision to drop the Warner Bros. Discovery pursuit clears a big overhang, improving growth/earnings visibility and leaving upside vs. consensus price targets. Netflix (NFLX) Could Have 15% Upside Now That WBD Deal Is Off the Table
• Positive Sentiment: Analyst upgrades and price-target lifts are boosting sentiment (e.g., Morgan Stanley raised its target to $115 and Goldman Sachs published a $120 target/upgrade), giving buyers confidence in upside. Morgan Stanley Lifts Price Target on Netflix to $115 Stream if You Want to Go Faster: Netflix's New $120 Target
• Positive Sentiment: Monetization and product expansion — Netflix’s ad and pricing strategies plus new offerings (e.g., the ad‑free kids’ app and sports/dining partnerships) are cited as drivers for revenue/margin improvement. These operational moves support the bullish analyst views. What Netflix (NFLX)'s Sports, Dining and Kids Gaming Push Means For Shareholders
• Positive Sentiment: Improved earnings quality context — analysts note stronger earnings momentum heading into Q1 with fewer strategic uncertainties, which supports short‑term upside into earnings. Netflix (NFLX) Heads Into Q1 With Stronger Earnings Quality
• Neutral Sentiment: Small analyst estimate tweaks — Erste Group trimmed FY2026/FY2027 EPS forecasts marginally but kept a buy stance; these are minor adjustments versus the bigger bullish catalyst set. Netflix analyst note summary (Erste Group)
• Neutral Sentiment: Near-term macro/calendar events — scheduled economic releases and Netflix’s upcoming earnings (mid‑April) create typical headline risk; investors should watch the April earnings date and guidance cadence. The Week Ahead: Netflix, Bank Earnings On Deck
• Negative Sentiment: Balance-sheet caution — analysis flags roughly $7.4B of unvested/issued stock options that could act like hidden leverage if exercised or accounted for differently, a potential concern for some value‑oriented investors. Netflix: The $7.4 Billion You Won't Find In Its Debt Line
• Negative Sentiment: Legal/refund risk in Europe — an Italian court ruling could require refunds to subscribers over past price hikes (appeal likely); this is a localized but reputational/legal headwind to monitor. Netflix told by court to refund customers over repeated price hikes

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Vanguard Group Inc. raised its position in shares of Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after buying an additional 351,493,659 shares in the last quarter. State Street Corp boosted its holdings in shares of Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the period. Capital World Investors increased its stake in shares of Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Finally, Morgan Stanley raised its holdings in Netflix by 903.0% during the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock worth $8,002,414,000 after purchasing an additional 76,840,318 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Stock Performance

The stock has a market cap of $430.87 billion, a P/E ratio of 40.38, a PEG ratio of 1.50 and a beta of 1.67. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19. The company has a fifty day moving average of $89.11 and a 200 day moving average of $99.25.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.01. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The firm had revenue of $12.05 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same period last year, the company posted $0.43 EPS. The firm's quarterly revenue was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, equities analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

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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