Netflix (NASDAQ:NFLX) Stock Rating Reaffirmed as “Buy” by TD Cowen

Netflix (NASDAQ:NFLX)‘s stock had its “buy” rating restated by stock analysts at TD Cowen in a research report issued on Wednesday, Benzinga reports. They presently have a $100.00 price target on the Internet television network’s stock. TD Cowen‘s target price indicates a potential upside of 52.60% from the stock’s current price.

Several other analysts also recently issued reports on NFLX. Itau BBA Securities lowered their price objective on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating for the company in a research report on Wednesday, August 5th. KGI Securities downgraded shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target on the stock. in a research note on Friday, July 17th. Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price objective for the company in a research report on Sunday, July 19th. Sanford C. Bernstein restated an “outperform” rating and set a $80.00 target price (down from $95.00) on shares of Netflix in a research note on Wednesday. Finally, Guggenheim dropped their target price on Netflix from $80.00 to $78.00 and set a “buy” rating on the stock in a research report on Wednesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Netflix currently has an average rating of “Moderate Buy” and an average price target of $90.06.

Netflix Price Performance

Netflix stock traded down $3.16 during mid-day trading on Wednesday, hitting $65.53. 57,838,930 shares of the company were exchanged, compared to its average volume of 42,414,637. The company has a market capitalization of $272.87 billion, a P/E ratio of 20.62, a PEG ratio of 0.99 and a beta of 1.62. Netflix has a 12-month low of $64.10 and a 12-month high of $116.73. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The business’s 50 day simple moving average is $74.92 and its two-hundred day simple moving average is $80.20.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. The company had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.59 EPS. Analysts forecast that Netflix will post 3.59 earnings per share for the current fiscal year.

Insider Activity at Netflix

In related news, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the sale, the chief executive officer directly owned 206,266 shares of the company’s stock, valued at $15,063,605.98. This represents a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David A. Hyman sold 5,723 shares of Netflix stock in a transaction that occurred on Tuesday, August 4th. The stock was 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 trade represents a 1.78% decrease in their position. 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. Insiders sold 179,045 shares of company stock worth $13,132,194 in the last quarter. Company insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

A number of hedge funds have recently modified their holdings of NFLX. Nykredit A S acquired a new stake in shares of Netflix during the second quarter worth about $105,697,000. Rockland Trust Co. raised its position in Netflix by 27.5% during the 3rd quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network’s stock worth $15,253,000 after buying an additional 47,339 shares during the last quarter. Ritholtz Wealth Management lifted its stake in Netflix by 25.0% during the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock valued at $10,235,000 after acquiring an additional 21,260 shares during the period. Welch & Forbes LLC raised its holdings in shares of Netflix by 3,464.5% during the first quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network’s stock worth $11,389,000 after purchasing an additional 115,125 shares during the last quarter. Finally, USS Investment Management Ltd boosted its holdings in Netflix by 31.8% in the first quarter. USS Investment Management Ltd now owns 886,527 shares of the Internet television network’s stock valued at $85,244,000 after purchasing an additional 213,972 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix exceeded third-quarter earnings expectations, reporting diluted EPS of $0.87 versus approximately $0.82 expected. Revenue rose 12% year over year to $12.87 billion, operating margin expanded to 34.6%, and net income increased about 44% to $3.66 billion. Netflix Q3 results
• Positive Sentiment: Management maintained its 2026 profitability target and said it still expects double-digit revenue growth into 2027, supported by pricing, content and advertising. Netflix also expects advertising revenue to grow more than 80% in 2026, despite execution delays. Netflix earnings call highlights
• Neutral Sentiment: Netflix is restructuring its content organization, including recent layoffs and executive departures, while planning new programming and live events intended to improve viewing hours and U.S. execution. Management acknowledged that content quality and engagement need to improve.
• Negative Sentiment: Fourth-quarter revenue guidance of roughly $13.4 billion fell short of analyst expectations and implies another slowdown in sales growth. The forecast also includes a lower 26% operating margin, partly because of restructuring costs. Netflix fourth-quarter forecast
• Negative Sentiment: Netflix reduced its 2026 advertising-revenue forecast to approximately $2.7 billion from $3 billion and lowered its free-cash-flow outlook to about $12 billion. The weaker ad outlook undermines a key part of the company’s growth strategy. Netflix advertising forecast
• Negative Sentiment: Analysts responded with downgrades and price-target reductions, including Needham’s move from “buy” to “hold.” Investors also remain concerned about stagnant viewership, competition from YouTube and TikTok, and the lack of a recent breakout global hit.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.