Netflix (NASDAQ:NFLX) Stock Price Up 2.4% - Still a Buy?

Key Points

• Netflix shares rose 2.4% to $82.73 in midday trading, although volume was about half the average. The stock remains below its 200-day moving average and 52-week high.
• Potential growth catalysts include the expanding advertising business, share repurchases, brand partnerships and a multi-year deal to distribute Netflix’s 2026 NFL games to commercial venues.
• Analysts maintain a consensus “Moderate Buy” rating with a $96.65 price target, but lowered targets, insider selling and continued underperformance versus the S&P 500 highlight ongoing valuation and downside risks.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shot up 2.4% on Wednesday . The company traded as high as $83.12 and last traded at $82.73. Approximately 21,791,050 shares were traded during mid-day trading, a decline of 50% from the average session volume of 43,554,281 shares. The stock had previously closed at $80.81.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s advertising business and large share-repurchase program are cited as potential catalysts for a long-term recovery. One analysis argues that the stock’s decline from its high may offer an attractive entry point if ad revenue continues to grow and buybacks support per-share earnings. Netflix Is Down 46% From Its High
• Positive Sentiment: A multi-year agreement with EverPass Media will distribute Netflix’s five 2026 NFL games—including a Thanksgiving Eve game and NFL Honors—to commercial venues nationwide. The deal broadens the reach and monetization potential of Netflix’s live sports programming. EverPass Media Expands NFL Offering Through Multi-Year Agreement with Netflix
• Positive Sentiment: Netflix’s partnership with Stella Artois, tied to the second season of The Gentlemen, demonstrates continued development of brand integrations and advertising opportunities beyond traditional subscription revenue. Netflix Unveils New Partnership
• Positive Sentiment: Exclusive Grand Theft Auto VI preview footage reportedly generated 31.1 million views and topped Netflix’s worldwide viewing charts. While the footage benefits Take-Two Interactive more directly, the result highlights Netflix’s ability to attract substantial audiences with gaming-related promotional content. GTA VI Gameplay Peek Tops Netflix’s Viewership Charts
• Neutral Sentiment: Analyst coverage remains constructive, with Netflix receiving an average “Moderate Buy” rating. Other commentary views the stock as appealing over a three-year horizon, but these are forward-looking opinions rather than new operating results. Netflix Receives Average Rating of Moderate Buy
• Negative Sentiment: Netflix has underperformed the S&P 500 this year and remains well below its 52-week high, keeping valuation and investor-confidence concerns in focus despite the recent rebound. Netflix, MercadoLibre, and Tesla Are All Underperforming the S&P 500
• Negative Sentiment: Options commentary suggests some traders see opportunities to short Netflix puts for elevated one-month yields, signaling that downside-risk concerns and volatility remain material. Netflix Puts Worth Shorting Here for High One-Month Yields

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Citigroup restated a "market perform" rating on shares of Netflix in a research note on Monday, August 17th. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Netflix in a research report on Thursday, August 20th. Pivotal Research dropped their price objective on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a report on Friday, July 17th. President Capital decreased their target price on shares of Netflix from $134.00 to $83.00 and set a "buy" rating on the stock in a research report on Monday, July 20th. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $85.00 price target (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and a consensus price target of $96.65.

Netflix Stock Up 2.4%

The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $344.48 billion, a price-to-earnings ratio of 26.04, a P/E/G ratio of 1.02 and a beta of 1.53. The stock has a 50 day moving average of $74.97 and a 200 day moving average of $84.35.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix's quarterly revenue was up 13.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.72 earnings per share. As a group, analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the sale, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. The trade was a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David A. Hyman sold 5,723 shares of Netflix stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 213,595 shares of company stock valued at $15,812,072 in the last quarter. Corporate insiders own 1.24% of the company's stock.

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently bought and sold shares of the stock. Imprint Wealth LLC acquired a new stake in Netflix during the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Netflix during the 4th quarter valued at $26,000. Clal Insurance Enterprises Holdings Ltd acquired a new position in Netflix in the second quarter valued at about $26,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Netflix in the 4th quarter valued at approximately $26,000. Finally, Jessup Wealth Management Inc acquired a new stake in Netflix in the fourth quarter worth $27,000. 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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source