Netflix (NASDAQ:NFLX) Price Target Cut to $90.00 by Analysts at Wedbush

Netflix (NASDAQ:NFLX) had its price objective dropped by stock analysts at Wedbush from $105.00 to $90.00 in a report released on Friday, Benzinga reports. The brokerage presently has an “outperform” rating on the Internet television network’s stock. Wedbush’s price objective suggests a potential upside of 23.95% from the company’s previous close.

A number of other research analysts also recently commented on the stock. DZ Bank reissued a “buy” rating on shares of Netflix in a research report on Monday, July 20th. CICC Research dropped their target price on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating on the stock in a report on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft raised shares of Netflix from a “hold” rating to a “buy” rating and dropped their target price for the company from $100.00 to $95.00 in a report on Tuesday, September 29th. Loop Capital cut their target price on shares of Netflix from $115.00 to $95.00 and set a “buy” rating for the company in a research note on Friday, July 24th. Finally, Rosenblatt Securities reiterated a “neutral” rating and set a $75.00 price target on shares of Netflix in a report on Friday. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Netflix has an average rating of “Moderate Buy” and a consensus price target of $93.82.

Netflix Price Performance

NASDAQ:NFLX opened at $72.61 on Friday. Netflix has a 1-year low of $65.08 and a 1-year high of $124.86. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a fifty day simple moving average of $75.25 and a 200 day simple moving average of $80.73. The stock has a market capitalization of $302.34 billion, a PE ratio of 22.85, a P/E/G ratio of 1.00 and a beta of 1.62.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.72 earnings per share. On average, research analysts expect that Netflix will post 3.59 EPS for the current fiscal year.

Insider Activity

In other Netflix news, CEO Gregory Peters sold 27,312 shares of Netflix stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider David Hyman sold 5,723 shares of the company’s stock in a transaction 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 transaction, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is owned by company insiders.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently modified their holdings of NFLX. Annex Advisory Services LLC grew its holdings in Netflix by 7.7% in the 3rd quarter. Annex Advisory Services LLC now owns 9,576 shares of the Internet television network’s stock valued at $666,000 after buying an additional 688 shares in the last quarter. Granite Islands Private Wealth LLC lifted its holdings in shares of Netflix by 1.4% during the third quarter. Granite Islands Private Wealth LLC now owns 40,930 shares of the Internet television network’s stock worth $2,841,000 after buying an additional 570 shares in the last quarter. Michael J. Porro & Co. Financial Advisors Inc. lifted its holdings in shares of Netflix by 3.7% during the third quarter. Michael J. Porro & Co. Financial Advisors Inc. now owns 12,736 shares of the Internet television network’s stock worth $886,000 after buying an additional 460 shares in the last quarter. Paragon Capital Management Inc. lifted its holdings in shares of Netflix by 5.9% during the third quarter. Paragon Capital Management Inc. now owns 14,016 shares of the Internet television network’s stock worth $975,000 after buying an additional 786 shares in the last quarter. Finally, Daytona Street Capital LLC boosted its position in shares of Netflix by 41.7% in the third quarter. Daytona Street Capital LLC now owns 72,179 shares of the Internet television network’s stock valued at $4,868,000 after acquiring an additional 21,234 shares during the period. Institutional investors own 80.93% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies upgraded Netflix to “Strong Buy.” The firm cited revenue-growth opportunities from pricing increases and advertising, and previously assigned an $85 price target. Zacks analyst coverage
• Positive Sentiment: Netflix hired former Disney and Fox executive Peter Rice as chief content officer. Rice will replace Bela Bajaria and is expected to help develop new hit programming as Netflix seeks to strengthen viewer engagement. The market’s initial reaction was favorable, although the transition also introduces execution risk. Reuters article
• Neutral Sentiment: Netflix is scheduled to report third-quarter results on October 20. Investors will focus on revenue, profitability, advertising, engagement and evidence that management’s full-year outlook remains achievable. Wall Street expects the report to clarify whether recent weakness is temporary or reflects a broader slowdown. Zacks earnings preview
• Negative Sentiment: Netflix is cutting roughly 1,000 employees, or 6% of its workforce. The cuts are intended to improve efficiency and redirect resources toward content and other growth initiatives, but their timing—amid slowing growth and before earnings—signals pressure on the business. CNBC layoffs article
• Negative Sentiment: Analysts and market researchers are flagging weaker engagement and rising churn. Reports indicate increased U.S. app churn and declining viewing activity, raising concerns that competition from YouTube and other streaming platforms could make subscriber retention and growth more expensive. TipRanks churn analysis

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.