Netflix (NASDAQ:NFLX) Trading 1.6% Higher – Still a Buy?

Netflix, Inc. (NASDAQ:NFLX)’s share price was up 1.6% on Tuesday . The company traded as high as $68.75 and last traded at $68.67. 55,147,622 shares were traded during mid-day trading, an increase of 20% from the average session volume of 46,007,984 shares. The stock had previously closed at $67.60.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain constructive on Netflix, with upgrades and price-target optimism suggesting meaningful upside from current levels if engagement and monetization trends hold up. Article: Netflix, Inc. (NFLX) is Attracting Investor Attention: Here is What You Should Know
• Positive Sentiment: Phillip Securities upgraded Netflix to strong-buy, arguing that engagement remains resilient and the recent selloff may have created a more attractive entry point. Article: Netflix was upgraded by Phillip Securities from “moderate buy” to “strong-buy”
• Positive Sentiment: Several bulls say the post-earnings drop has compressed Netflix’s valuation and could make the stock appealing for long-term investors, especially with advertising and live-event growth opportunities. Article: Netflix’s Crash Created A Rare Opportunity
• Neutral Sentiment: Coverage is split, with some analysts arguing Netflix is entering a more mature phase and should be valued on slower, steadier growth rather than the faster multiple expansion it enjoyed before. Article: Netflix Enters Adulthood, And The Multiple Should Too
• Neutral Sentiment: Netflix’s management also signaled a high bar for acquisitions, which suggests the company is unlikely to pursue a transformative deal soon; this is more of a strategic update than a near-term catalyst. Article: 5 Words From Netflix’s Co-CEO Ted Sarandos That Suggest an Acquisition May Not Necessarily Be on the Horizon for the Streaming Giant
• Negative Sentiment: Bearish commentary is dominating the tape, with multiple articles highlighting slowing growth, weaker guidance, and concerns that pricing tailwinds are fading. Article: Our Bearishness On Netflix Hasn’t Ended
• Negative Sentiment: Investors remain focused on the earnings disappointment and slowing revenue outlook, which have pushed the stock toward multiyear lows and kept sentiment weak. Article: Netflix just made its slowdown harder to measure

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on NFLX shares. Daiwa Securities Group increased their price target on Netflix from $97.00 to $102.00 and gave the company an “outperform” rating in a research note on Thursday, April 23rd. Jefferies Financial Group lowered their target price on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a report on Wednesday, June 10th. Oppenheimer set a $85.00 target price on Netflix and gave the company an “outperform” rating in a research report on Friday. Piper Sandler reissued an “overweight” rating and set a $85.00 price target (down from $115.00) on shares of Netflix in a research note on Friday. Finally, Pivotal Research reduced their price target on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $104.21.

Netflix Trading Up 1.6%

The firm has a market cap of $289.16 billion, a price-to-earnings ratio of 21.61, a price-to-earnings-growth ratio of 0.88 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.41. The firm’s fifty day moving average is $79.80 and its 200-day moving average is $86.67.

Netflix (NASDAQ:NFLX) last issued its quarterly 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. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter in the prior year, the firm posted $0.72 earnings per share. The business’s quarterly revenue was up 13.4% compared to the same quarter last year. Equities analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insider Activity at Netflix

In other news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at $6,177,568.80. This represents a 31.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 407,550 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at approximately $366,932.20. The trade was a 99.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 899,839 shares of company stock worth $80,141,661 over the last ninety days. 1.24% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Institutional investors and hedge funds have recently modified their holdings of the stock. Pacific Sun Financial Corp lifted its stake in Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock valued at $688,000 after purchasing an additional 9 shares during the last quarter. Beaird Harris Wealth Management LLC lifted its stake in shares of Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after buying an additional 10 shares during the period. Monograph Wealth Advisors LLC grew its holdings in shares of Netflix by 1.8% during the 2nd quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock worth $913,000 after purchasing an additional 12 shares in the last quarter. Resources Management Corp CT ADV increased its holdings in Netflix by 2.0% in the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock valued at $1,110,000 after buying an additional 16 shares during the period. Finally, Sompo Asset Management Co. Ltd. boosted its position in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock valued at $2,009,000 after acquiring an additional 20 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

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.