Netflix (NASDAQ:NFLX) Upgraded by Seaport Res Ptn to Strong-Buy Rating

Key Points

• Netflix has been upgraded from a "hold" rating to a "strong-buy" rating by Seaport Res Ptn, indicating increased analyst confidence.
• KeyCorp raised its price target for Netflix shares from $1,070 to $1,390, while BMO Capital Markets increased theirs to $1,425.
• Netflix reported earnings of $7.19 per share, surpassing analysts' expectations, and experienced a 15.9% revenue increase compared to the same quarter last year.

Netflix (NASDAQ:NFLX - Get Free Report) was upgraded by analysts at Seaport Res Ptn from a "hold" rating to a "strong-buy" rating in a report issued on Monday,Zacks.com reports. Seaport Res Ptn also issued estimates for Netflix's Q4 2025 earnings at $5.48 EPS, FY2025 earnings at $26.26 EPS, Q3 2026 earnings at $8.34 EPS, Q4 2026 earnings at $6.76 EPS and FY2026 earnings at $31.27 EPS.

Other analysts have also issued research reports about the stock. KeyCorp increased their price target on shares of Netflix from $1,070.00 to $1,390.00 and gave the stock an "overweight" rating in a research report on Thursday, July 10th. Needham & Company LLC reissued a "buy" rating and set a $1,500.00 target price on shares of Netflix in a research note on Wednesday, September 10th. BMO Capital Markets reaffirmed an "outperform" rating and issued a $1,425.00 price target (up from $1,200.00) on shares of Netflix in a research note on Tuesday, July 15th. The Goldman Sachs Group decreased their target price on shares of Netflix from $1,310.00 to $1,300.00 and set a "neutral" rating for the company in a research report on Tuesday, September 30th. Finally, JPMorgan Chase & Co. boosted their target price on shares of Netflix from $1,230.00 to $1,300.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. Two research analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $1,337.63.

Netflix Stock Performance

NFLX stock opened at $1,191.06 on Monday. The company has a 50 day moving average price of $1,207.58 and a 200 day moving average price of $1,163.42. The stock has a market capitalization of $506.12 billion, a PE ratio of 50.75, a price-to-earnings-growth ratio of 1.96 and a beta of 1.59. Netflix has a fifty-two week low of $677.88 and a fifty-two week high of $1,341.15. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The firm had revenue of $11.08 billion during the quarter, compared to analyst estimates of $11.04 billion. During the same period in the prior year, the business earned $4.88 EPS. The company's revenue for the quarter was up 15.9% compared to the same quarter last year. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. Analysts forecast that Netflix will post 24.58 EPS for the current year.

Insider Transactions at Netflix

In related news, insider Cletus R. Willems sold 238 shares of the business's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $1,153.52, for a total transaction of $274,537.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Reed Hastings sold 42,176 shares of the business's stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $1,171.92, for a total transaction of $49,426,897.92. Following the sale, the director owned 394 shares of the company's stock, valued at $461,736.48. This trade represents a 99.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 104,100 shares of company stock valued at $122,710,980. Company insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Netflix

Hedge funds have recently added to or reduced their stakes in the stock. Optima Capital LLC raised its stake in Netflix by 3.5% in the second quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock worth $320,000 after buying an additional 8 shares in the last quarter. Unified Investment Management raised its stake in Netflix by 1.7% in the second quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock worth $635,000 after buying an additional 8 shares in the last quarter. Plancorp LLC raised its stake in Netflix by 0.6% in the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock worth $1,711,000 after buying an additional 8 shares in the last quarter. Five Oceans Advisors raised its stake in Netflix by 1.1% in the second quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock worth $1,006,000 after buying an additional 8 shares in the last quarter. Finally, Old Port Advisors raised its stake in Netflix by 1.3% in the second quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock worth $836,000 after buying an additional 8 shares in 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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