The Goldman Sachs Group Upgrades Netflix (NASDAQ:NFLX) to Buy

Key Points

• Goldman Sachs upgraded Netflix from "neutral" to "buy" and raised its price target to $120 (from $100), implying roughly a 21.6% upside, a move that pushed the stock up about 3% on the news.
• Broad analyst sentiment is still positive — MarketBeat shows a consensus of "Moderate Buy" with 36 Buys, 12 Holds and a consensus price target around $115.07.
• Significant insider selling is a potential warning: director Reed Hastings sold 420,550 shares (~$40.16M) and insiders disposed of about 1.54M shares (~$141.15M) over the past 90 days, leaving insiders with just 1.37% ownership.

Netflix (NASDAQ:NFLX - Get Free Report) was upgraded by research analysts at The Goldman Sachs Group from a "neutral" rating to a "buy" rating in a note issued to investors on Monday,Benzinga reports. The brokerage currently has a $120.00 price objective on the Internet television network's stock, up from their previous price objective of $100.00. The Goldman Sachs Group's price target suggests a potential upside of 21.63% from the company's current price.

A number of other equities analysts have also commented on NFLX. Evercore initiated coverage on Netflix in a research note on Friday, February 27th. They issued an "outperform" rating and a $115.00 price objective on the stock. Moffett Nathanson lowered their price target on shares of Netflix from $140.00 to $115.00 and set a "buy" rating for the company in a report on Wednesday, January 21st. UBS Group set a $104.00 price target on shares of Netflix in a research report on Tuesday, January 27th. Wells Fargo & Company assumed coverage on shares of Netflix in a research note on Monday, March 9th. They issued an "equal weight" rating and a $105.00 price objective on the stock. Finally, Benchmark reissued a "hold" rating on shares of Netflix in a research note on Tuesday, January 13th. Two research analysts have rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $115.07.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $98.66 on Monday. The firm has a market cap of $416.56 billion, a P/E ratio of 39.04, a P/E/G ratio of 1.50 and a beta of 1.67. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. Netflix has a 12-month low of $75.01 and a 12-month high of $134.12. The business has a fifty day simple moving average of $88.28 and a 200 day simple moving average of $99.72.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. The firm had revenue of $12.05 billion for the quarter, compared to the consensus estimate of $11.97 billion. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The business's quarterly revenue was up 17.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Analysts predict that Netflix will post 24.58 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Cletus R. Willems sold 3,136 shares of the business's stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $82.67, for a total transaction of $259,253.12. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Reed Hastings sold 420,550 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the transaction, the director directly owned 3,940 shares in the company, valued at approximately $376,230.60. This represents a 99.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,543,023 shares of company stock worth $141,145,842 over the last ninety days. 1.37% of the stock is owned by company insiders.

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in Netflix by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network's stock valued at $46,183,983,000 after acquiring an additional 142,238 shares during the period. Contravisory Investment Management Inc. lifted its holdings in Netflix by 837.2% during the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network's stock valued at $10,443,000 after purchasing an additional 99,496 shares during the last quarter. Crew Capital Management Ltd boosted its position in Netflix by 1,021.9% during the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network's stock worth $847,000 after purchasing an additional 8,226 shares during the period. Grove Bank & Trust increased its stake in shares of Netflix by 1,379.8% in the fourth quarter. Grove Bank & Trust now owns 25,512 shares of the Internet television network's stock worth $2,392,000 after purchasing an additional 23,788 shares in the last quarter. Finally, CIBC Capital Markets Europe S.A. raised its position in shares of Netflix by 171.4% in the third quarter. CIBC Capital Markets Europe S.A. now owns 66,503 shares of the Internet television network's stock valued at $79,732,000 after purchasing an additional 42,000 shares during the period. Institutional investors own 80.93% of the company's stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Goldman Sachs upgraded NFLX to a Buy with a $120 price target, citing improving ad-revenue growth, better operating leverage and shareholder-return potential — a catalyst investors pushed the stock higher on. Netflix Stock (NFLX) Just Got a Rating and Price Target Boost from Goldman Sachs. Here’s Why
• Positive Sentiment: Market reaction noted: news outlets report NFLX jumped ~3% immediately after Goldman’s upgrade — showing the upgrade is the main near-term driver of today’s price strength. Netflix (NFLX) Stock Jumps 3% Following Goldman Sachs Buy Rating
• Positive Sentiment: Analysts and bullish pieces argue Netflix could beat Q1 thanks to price hikes, accelerating ad revenue (some forecasts see ad rev doubling to ~$3B in 2026), better margins from ad tech, and a potential breakup fee related to the failed Warner Bros deal — all supportive of upside. Netflix: Three Reasons To Expect An Earnings Beat
• Neutral Sentiment: Coverage highlights Netflix’s increasing focus on live sports rights and strategic event bids — this supports long-term subscriber and pricing power but requires capital and carries execution risk; it’s being cited as a reason Netflix can justify recent price increases. Netflix May Have Good Reason To Raise Prices: Streamer Eyes More NFL Games
• Neutral Sentiment: Investor commentary asks whether the recent price hike leaves upside limited near term — useful context for investors deciding whether to buy before April 16 earnings. Is Netflix a Buy After Its Most Recent Price Hike?
• Negative Sentiment: Insider risk: Netflix CFO reportedly sold about $2.8M of stock — an item investors sometimes view as a mild negative signal, especially ahead of earnings. Insider Selling: Netflix NASDAQ: NFLX CFO Sells $2,805,740.00 in Stock
• Negative Sentiment: Regulatory/legal headwind: A Rome court ruled some historical subscription price increases in Italy unlawful, ordering rollbacks and refunds — a reminder of regulatory risks for Netflix’s pricing strategy in Europe. Rome Court Ruling Tests Netflix Pricing Power And Investor Expectations

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.

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