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

Netflix (NASDAQ:NFLX)‘s stock had its “buy” rating restated by TD Cowen in a report issued on Wednesday, Benzinga reports. They currently have a $100.00 target price on the Internet television network’s stock. TD Cowen’s price objective suggests a potential upside of 52.79% from the stock’s current price.

NFLX has been the topic of several other research reports. Rothschild & Co Redburn dropped their target price on shares of Netflix from $120.00 to $93.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. New Street Research upped their price target on shares of Netflix from $96.00 to $102.00 and gave the company a “neutral” rating in a report on Friday, July 17th. CLSA started coverage on Netflix in a research report on Monday, July 20th. They issued an “outperform” rating on the stock. Weiss Ratings raised Netflix from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Finally, Robert W. Baird set a $90.00 target price on shares of Netflix and gave the stock an “outperform” rating in a research report on Wednesday, July 22nd. 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 assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $90.20.

Netflix Stock Down 4.7%

Shares of NASDAQ NFLX traded down $3.24 during mid-day trading on Wednesday, reaching $65.45. 42,521,243 shares of the company traded hands, compared to its average volume of 42,338,512. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a market cap of $272.53 billion, a PE ratio of 20.61, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62. The company’s fifty day moving average is $74.92 and its two-hundred day moving average is $80.20. Netflix has a fifty-two week low of $64.10 and a fifty-two week high of $116.73.

Netflix (NASDAQ:NFLX) last posted its earnings results 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. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The firm had revenue of $12.87 billion during the quarter, compared to analyst estimates of $12.87 billion. During the same period in the previous year, the company earned $0.59 EPS. The company’s revenue for the quarter was up 11.9% on a year-over-year basis. On average, analysts expect that Netflix will post 3.59 earnings per share for the current year.

Insider Activity

In other Netflix news, CFO Spencer Neumann sold 9,248 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. The trade was a 33.91% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 over the last ninety days. Corporate insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NFLX. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix during the 2nd quarter worth approximately $26,000. Compound Global Advisors LLC bought a new position in shares of Netflix in the second quarter valued at approximately $29,000. Burnham & Co LLC bought a new position in shares of Netflix in the second quarter valued at approximately $29,000. Merkkuri Wealth Advisors LLC purchased a new stake in shares of Netflix during the first quarter valued at approximately $31,000. Finally, Bayban increased its position in shares of Netflix by 400.0% during the first quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after acquiring an additional 280 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

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.