Netflix (NASDAQ:NFLX) Shares Down 1.1% Following Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) dropped 1.1% during trading on Wednesday after HSBC downgraded the stock from a buy rating to a hold rating. HSBC now has a $76.00 price target on the stock, down from their previous price target of $96.00. Netflix traded as low as $71.07 and last traded at $71.36. 32,477,200 shares changed hands during trading, a decline of 24% from the average daily volume of 42,918,629 shares. The stock had previously closed at $72.16.

A number of other equities research analysts have also recently issued reports on the company. DZ Bank reiterated a “buy” rating on shares of Netflix in a research note on Monday, July 20th. Moffett Nathanson decreased their target price on shares of Netflix from $115.00 to $100.00 and set a “buy” rating for the company in a research note on Friday, July 17th. Phillip Securities upgraded shares of Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 target price on the stock in a report on Sunday, July 19th. Wells Fargo & Company lowered shares of Netflix from a “neutral” rating to an “underweight” rating and dropped their price target for the stock from $80.00 to $57.00 in a research report on Friday, September 18th. Finally, CICC Research cut their price target on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating for the company in a research note on Tuesday, July 21st. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $95.51.

Insiders Place Their Bets

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard N. Barton sold 720 shares of the company’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction 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 ownership of the stock. 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 179,045 shares of company stock worth $13,132,194 in the last quarter. Company insiders own 1.24% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts argue that Netflix’s sharp pullback has already priced in substantial bad news, potentially creating an attractive entry point for long-term investors. Other bullish commentary highlights the company’s potential for meaningful earnings growth through 2030. The Case for Buying Netflix Stock
• Positive Sentiment: Disney’s higher Disney+ and Hulu prices could make Netflix’s premium plans appear more competitively positioned, although the broader streaming market remains highly competitive. Disney Raises Disney+ and Hulu Streaming Prices
• Neutral Sentiment: Wall Street’s outlook is divided, with significant differences among analysts’ price targets. Some see valuation support after the selloff, while others expect additional downside. Netflix’s decision not to pursue Warner Bros. Discovery also avoided potentially expensive acquisition spending, but leaves rivals to expand their content scale. Netflix Stock Has a Strange Stock Price Target Problem
• Negative Sentiment: HSBC downgraded Netflix from Buy to Hold and reduced its price target from $96 to $76, citing a widening viewing-hour gap between Netflix and YouTube. The concern is that YouTube is capturing more consumer time, weakening Netflix’s engagement and making its recovery harder. This Analyst Just Downgraded Netflix Stock, And YouTube May Be to Blame
• Negative Sentiment: Wells Fargo separately cut Netflix to Underweight and lowered its target to $57, pointing to weaker personal and broader viewer engagement and rising competition from YouTube and other formats. The downgrade has intensified concerns about whether live sports, video podcasts and short-form content can restore viewing momentum. Netflix Is Down After Wells Fargo Flags Engagement Risks
• Negative Sentiment: Zacks currently rates NFLX a #4 (Sell), suggesting limited confidence in near-term performance. Bearish trading commentary, including a proposed bear put spread, reflects expectations that competitive and engagement pressures may continue weighing on the shares. Are Netflix Shares Still Worth Watching?

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cornerstone Financial Management LLC purchased a new stake in shares of Netflix during the 4th quarter worth approximately $26,000. Core Wealth Advisors LLC bought a new stake in Netflix in the fourth quarter worth $28,000. Evolution Wealth Management Inc. raised its stake in Netflix by 2,284.6% during the fourth quarter. Evolution Wealth Management Inc. now owns 310 shares of the Internet television network’s stock valued at $29,000 after purchasing an additional 297 shares in the last quarter. Merkkuri Wealth Advisors LLC purchased a new position in shares of Netflix in the 1st quarter worth $31,000. Finally, Cedar Mountain Advisors LLC grew its stake in shares of Netflix by 712.5% in the 4th quarter. Cedar Mountain Advisors LLC now owns 325 shares of the Internet television network’s stock worth $30,000 after buying an additional 285 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Stock Performance

The business’s fifty day moving average price is $75.78 and its two-hundred day moving average price is $83.68. 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 capitalization of $297.14 billion, a P/E ratio of 22.46, a P/E/G ratio of 1.03 and a beta of 1.53.

Netflix (NASDAQ:NFLX) last announced 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. The firm had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.72 EPS. As a group, sell-side analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.