Netflix’s (NFLX) “Buy” Rating Reaffirmed at TD Cowen

Netflix (NASDAQ:NFLX)‘s stock had its “buy” rating restated by stock analysts at TD Cowen in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $100.00 price target on the Internet television network’s stock. TD Cowen‘s price target indicates a potential upside of 53.96% from the stock’s previous close.

Several other research analysts have also recently weighed in on NFLX. Pivotal Research reiterated a “hold” rating and set a $65.00 price objective on shares of Netflix in a research report on Wednesday. BMO Capital Markets reiterated an “outperform” rating and set a $125.00 price objective (down from $135.00) on shares of Netflix in a research report on Friday. The Goldman Sachs Group set a $84.00 price objective on Netflix in a research report on Wednesday. Rosenblatt Securities set a $71.00 price objective on Netflix and gave the stock a “neutral” rating in a research report on Wednesday. Finally, Stephens assumed coverage on Netflix in a report on Friday, July 17th. They set an “overweight” rating on the stock. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and a consensus target price of $90.06.

Netflix Stock Performance

NFLX stock traded down $3.74 during trading hours on Wednesday, hitting $64.95. 54,337,514 shares of the stock were exchanged, compared to its average volume of 42,382,930. 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 market capitalization of $270.46 billion, a P/E ratio of 20.46, a P/E/G ratio of 0.99 and a beta of 1.62. The company has a 50-day simple moving average of $74.92 and a two-hundred day simple moving average of $80.20. Netflix has a 12 month low of $64.10 and a 12 month high of $116.73.

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

Insider Activity at Netflix

In other news, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the sale, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at approximately $13,126,275.90. This represents a 13.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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, Director Richard N. Barton sold 720 shares of Netflix stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares in the company, valued at approximately $185,164.20. This represents a 22.64% decrease in their position. 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 sold a total of 179,045 shares of company stock worth $13,132,194 in the last quarter. 1.24% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Nykredit A S purchased a new position in shares of Netflix during the 2nd quarter worth about $105,697,000. Rockland Trust Co. raised its position in Netflix by 27.5% in the 3rd quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network’s stock worth $15,253,000 after purchasing an additional 47,339 shares during the period. Ritholtz Wealth Management lifted its stake in Netflix by 25.0% in the first quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock worth $10,235,000 after purchasing an additional 21,260 shares during the last quarter. Welch & Forbes LLC lifted its stake in Netflix by 3,464.5% in 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 position in shares of Netflix by 31.8% during 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 buying an additional 213,972 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: 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.

About Netflix

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.