Netflix (NASDAQ:NFLX) Trading Up 1.4% - Here's Why

Key Points

• Netflix shares rose 1.4% on Thursday, trading as high as $90.37 after closing at $88.09 the previous day, even though volume came in below average.
• Recent news highlights Netflix’s push into live and ad-supported content, including a daily live stream of The Breakfast Club and reports that its ad tier has surpassed 250 million monthly viewers globally.
• Analysts remain broadly constructive, with multiple upgrades and a consensus rating of Moderate Buy; meanwhile, Netflix also posted strong quarterly results, beating EPS and revenue estimates and growing revenue 16.2% year over year.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price was up 1.4% during trading on Thursday . The company traded as high as $90.37 and last traded at $89.30. Approximately 28,437,982 shares changed hands during trading, a decline of 38% from the average daily volume of 45,640,484 shares. The stock had previously closed at $88.09.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix and iHeartMedia announced that The Breakfast Club will stream live daily on Netflix, marking the platform’s first daily live program and highlighting its move deeper into live content. Article Title
• Positive Sentiment: Bank of America-backed reports say Netflix’s ad-supported tier surpassed 250 million monthly viewers globally, a sign that the ad business is scaling quickly and could become a bigger profit driver. Article Title
• Positive Sentiment: Analysts and media coverage continue to point to Netflix’s sports strategy, including NFL games and MMA-related viewership gains, as another way to attract subscribers and advertisers. Article Title
• Neutral Sentiment: Co-founder Reed Hastings said entertainment may be the least affected by AI because audiences still prefer human conflict and storytelling, which is supportive of the long-term thesis but not an immediate earnings catalyst. Article Title
• Neutral Sentiment: Recent pieces comparing Netflix’s revenue trends with Disney’s mostly reinforce that Netflix has delivered more consistent growth, but they do not add new company-specific news. Article Title
• Negative Sentiment: Some commentary questions whether Netflix’s valuation may already be pricing in too much future growth after the recent share price pullback, which could limit upside if execution slows. Article Title

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on NFLX shares. The Goldman Sachs Group upgraded shares of Netflix from a "neutral" rating to a "buy" rating in a report on Monday, April 13th. Piper Sandler reissued an "overweight" rating and issued a $115.00 price objective (up from $103.00) on shares of Netflix in a research report on Friday, April 17th. William Blair reissued an "outperform" rating on shares of Netflix in a research report on Wednesday, January 21st. Susquehanna raised shares of Netflix to a "positive" rating and set a $112.00 target price for the company in a report on Wednesday, January 21st. Finally, New Street Research lifted their target price on shares of Netflix from $96.00 to $102.00 in a report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $114.82.

Netflix Stock Up 1.4%

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 stock has a market cap of $376.02 billion, a P/E ratio of 28.84, a P/E/G ratio of 1.14 and a beta of 1.55. The stock's fifty day simple moving average is $94.16 and its 200-day simple moving average is $94.34.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $12.25 billion during 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%. The business's revenue for the quarter was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, research analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the business's stock in a transaction dated 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 completion of the sale, the chief executive officer owned 120,931 shares of the company's stock, valued at $10,725,370.39. The trade was a 18.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Reed Hastings sold 407,550 shares of the business's stock in a transaction that occurred on 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 transaction, the director owned 3,940 shares of the company's stock, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,422,769 shares of company stock worth $135,144,073. Company insiders own 1.24% of the company's stock.

Institutional Trading of Netflix

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Apriem Advisors lifted its holdings in shares of Netflix by 0.6% during the 3rd quarter. Apriem Advisors now owns 1,567 shares of the Internet television network's stock worth $1,879,000 after acquiring an additional 9 shares during the period. Tortoise Investment Management LLC increased its position in Netflix by 10.8% during the 3rd quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network's stock worth $110,000 after purchasing an additional 9 shares in the last quarter. Brass Tax Wealth Management Inc. increased its position in Netflix by 3.2% during the 3rd quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network's stock worth $345,000 after purchasing an additional 9 shares in the last quarter. Pacific Sun Financial Corp increased its position in Netflix by 1.6% during the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock worth $688,000 after purchasing an additional 9 shares in the last quarter. Finally, CVA Family Office LLC increased its position in Netflix by 1.0% during the 3rd quarter. CVA Family Office LLC now owns 1,043 shares of the Internet television network's stock worth $1,250,000 after purchasing an additional 10 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.