Netflix (NASDAQ:NFLX) Trading 3% Higher – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX) traded up 3% on Monday . The company traded as high as $89.82 and last traded at $89.65. 34,270,953 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 46,159,480 shares. The stock had previously closed at $87.02.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bank of America says Netflix’s ad-supported tier has surpassed 250 million monthly viewers globally, up sharply from a year ago, and that the company’s expanding live sports strategy should further strengthen its advertising business. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Analysts are becoming more constructive after Netflix’s advertiser presentation, suggesting the company’s upfront event improved sentiment around its ad business and monetization potential. Netflix Sentiment Improves After Video Streamer’s Upfront Presentation
• Positive Sentiment: Omdia projects the connected TV ad market will nearly double by 2030, with Netflix expected to capture a large share alongside Amazon and Google, supporting the long-term value of its ad platform. Omdia: Amazon, Netflix and Google to Capture Half of $81 Billion CTV Advertising Market by 2030
• Positive Sentiment: Coverage around Netflix’s NFL game slate highlights another potential growth driver, as the company uses live sports to attract new viewers and advertisers. Why Netflix and the NFL Could Be a Perfect Match
• Neutral Sentiment: Several articles frame Netflix as a possible long-term winner or even a future trillion-dollar company, but these are mostly opinion pieces and do not add near-term fundamentals. Is Netflix the Next Trillion-Dollar Company?
• Neutral Sentiment: Netflix-related entertainment coverage and celebrity/news stories are likely not material to the stock’s trading today. Mackenzie Shirilla’s Dad Says Netflix’s ‘The Crash’ Twisted His Words About Marijuana

Wall Street Analysts Forecast Growth

Several equities analysts have commented on NFLX shares. Erste Group Bank downgraded shares of Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Arete Research raised shares of Netflix from a “neutral” rating to a “buy” rating in a research report on Friday, February 27th. Sanford C. Bernstein reissued a “buy” rating on shares of Netflix in a research report on Thursday, May 14th. Morgan Stanley reissued an “overweight” rating on shares of Netflix in a research report on Friday, April 17th. Finally, Freedom Capital raised shares of Netflix from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $114.82.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The stock’s fifty day simple moving average is $94.36 and its 200-day simple moving average is $94.50. The company has a market capitalization of $370.93 billion, a P/E ratio of 28.45, a PEG ratio of 1.14 and a beta of 1.55.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company had revenue of $12.25 billion during the quarter, compared to analysts’ expectations of $12.17 billion. During the same period in the prior year, the company earned $6.61 earnings per share. The business’s quarterly revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Activity at Netflix

In related news, Director Reed Hastings sold 407,550 shares of the stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director owned 3,940 shares in the company, valued at approximately $366,932.20. This trade represents a 99.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the completion of the sale, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 1,422,769 shares of company stock valued at $135,144,073. 1.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently made changes to their positions in the stock. First Financial Corp IN lifted its stake in Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 243 shares during the period. DiNuzzo Private Wealth Inc. lifted its stake in Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 239 shares during the period. Turning Point Benefit Group Inc. lifted its stake in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC bought a new position in Netflix during the third quarter worth about $25,000. Finally, Cornerstone Financial Management LLC bought a new position in Netflix during the fourth quarter worth about $26,000. Institutional investors own 80.93% of the company’s stock.

About Netflix

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.