Netflix (NASDAQ:NFLX) Stock Rating Reaffirmed as “Buy” by TD Cowen

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

NFLX has been the topic of several other reports. Guggenheim dropped their price objective on shares of Netflix from $80.00 to $78.00 and set a “buy” rating on the stock in a report on Wednesday. Wedbush reduced their target price on shares of Netflix from $105.00 to $90.00 and set an “outperform” rating for the company in a research note on Friday, October 16th. Bank of America reduced their target price on shares of Netflix from $105.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday. Rothschild & Co Redburn lowered their price target on shares of Netflix from $120.00 to $93.00 and set a “buy” rating on the stock in a research report on Tuesday, July 21st. Finally, Piper Sandler reissued an “overweight” rating and issued a $78.00 price target (down from $85.00) on shares of Netflix in a research report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $90.20.

Netflix Stock Performance

Shares of NASDAQ NFLX traded down $3.24 during mid-day trading on Wednesday, reaching $65.45. 42,521,243 shares of the company’s stock were exchanged, compared to its average volume of 42,338,512. The firm has a 50-day moving average price of $74.92 and a two-hundred day moving average price of $80.20. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a market capitalization of $272.53 billion, a price-to-earnings ratio of 20.61, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62. Netflix has a 52 week low of $64.10 and a 52 week high of $116.73.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, beating the consensus estimate of $0.82 by $0.05. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.87 billion during the quarter, compared to analyst estimates of $12.87 billion. During the same quarter in the prior year, the business earned $0.59 earnings per share. The firm’s revenue for the quarter was up 11.9% on a year-over-year basis. Analysts predict that Netflix will post 3.59 EPS for the current year.

Insider Transactions at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. This trade represents a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Clal Insurance Enterprises Holdings Ltd purchased a new position in Netflix in the 2nd quarter worth approximately $26,000. Compound Global Advisors LLC purchased a new stake in shares of Netflix during the 2nd quarter valued at $29,000. Burnham & Co LLC purchased a new stake in shares of Netflix during the 2nd quarter valued at $29,000. Merkkuri Wealth Advisors LLC bought a new stake in shares of Netflix during the 1st quarter worth $31,000. Finally, Bayban lifted its holdings in shares of Netflix by 400.0% during the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock worth $34,000 after acquiring an additional 280 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories 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.

Netflix Company Profile

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.