Netflix (NASDAQ:NFLX) Trading Up 1.4% – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX) shares traded up 1.4% on Thursday . The stock traded as high as $90.37 and last traded at $89.30. 28,437,982 shares were traded during mid-day trading, a decline of 38% from the average session volume of 45,640,484 shares. The stock had previously closed at $88.09.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s ad-supported tier has surpassed 250 million monthly viewers, reinforcing the company’s advertising growth story and supporting the bull case for future revenue expansion. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Netflix is deepening its partnership with iHeartMedia by streaming “The Breakfast Club” live daily, a sign it is pushing further into live and podcast-style programming that could broaden engagement and ad inventory. iHeartMedia and Netflix Deepen Partnership with Daily Live Video Stream of The Breakfast Club
• Positive Sentiment: CNBC highlighted Netflix as a “final trade,” suggesting some short-term trading interest from market watchers. IBM, ServiceNow, Netflix And A Basic Materials Stock: CNBC’s ‘Final Trades’
• Neutral Sentiment: BetterInvesting questioned whether Netflix is fairly valued after its recent report, which keeps the stock in “show-me” territory even after strong earnings and revenue growth. BetterInvesting™ Magazine Update on Netflix (NASDAQ: NFLX) and ExlService Holdings Inc. (NASDAQ: EXLS)
• Neutral Sentiment: Analyst commentary noted Netflix as a possible suitor if IMAX is sold, but this is speculative and not a confirmed deal driver. IMAX Potential Suitors Include Netflix, Apple, Wedbush Says
• Negative Sentiment: Canada’s new streaming rules would require Netflix to contribute a larger share of domestic revenue to Canadian content, raising compliance costs for the business. Canada Raises Streaming Content Requirement to 15% for Netflix, Disney, Amazon
• Negative Sentiment: Separate reporting also flagged higher costs from the same Canadian policy change, adding a modest regulatory headwind for Netflix and other streamers. Netflix, Spotify to face higher costs as CRTC changes rules

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Jefferies Financial Group dropped their price objective on shares of Netflix from $134.00 to $128.00 and set a “buy” rating on the stock in a report on Friday, April 17th. HSBC lifted their target price on shares of Netflix from $106.00 to $114.00 and gave the stock a “buy” rating in a research note on Friday, April 10th. Wedbush restated an “outperform” rating and set a $118.00 price target on shares of Netflix in a research note on Thursday, April 16th. TD Cowen reaffirmed a “buy” rating on shares of Netflix in a report on Thursday, May 14th. Finally, Moffett Nathanson boosted their target price on shares of Netflix from $115.00 to $120.00 and gave the company a “buy” rating in a report on Tuesday, April 14th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $114.82.

Netflix Trading Down 0.8%

The firm’s 50 day moving average is $93.88 and its 200 day moving average is $94.06. 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 company has a market cap of $373.08 billion, a PE ratio of 28.62, a PEG ratio of 1.13 and a beta of 1.55.

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

Insider Activity at Netflix

In other Netflix news, Director Reed Hastings sold 420,550 shares of the business’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total value of $40,158,319.50. Following the completion of the transaction, the director owned 3,940 shares of the company’s stock, valued at $376,230.60. The trade was a 99.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,722 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $27,842,088. This represents a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,422,769 shares of company stock valued at $135,144,073 in the last ninety days. Insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

A number of hedge funds have recently made changes to their positions in NFLX. Summitry LLC lifted its stake in Netflix by 79.6% during the first quarter. Summitry LLC now owns 587,347 shares of the Internet television network’s stock worth $56,473,000 after purchasing an additional 260,248 shares during the last quarter. Groupama Asset Managment increased its position in shares of Netflix by 422.7% during the 1st quarter. Groupama Asset Managment now owns 313,533 shares of the Internet television network’s stock valued at $30,146,000 after purchasing an additional 253,553 shares during the last quarter. WNY Asset Management LLC purchased a new position in shares of Netflix during the 1st quarter valued at about $238,000. Coastline Complete Wealth LLC purchased a new position in shares of Netflix during the 1st quarter valued at about $224,000. Finally, Verus Capital Partners LLC lifted its position in Netflix by 1.5% in the 1st quarter. Verus Capital Partners LLC now owns 22,222 shares of the Internet television network’s stock worth $2,137,000 after buying an additional 325 shares during the last quarter. 80.93% of the stock is owned by institutional investors.

Netflix Company Profile

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.