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

Netflix (NASDAQ:NFLX)‘s stock had its “buy” rating reissued by stock analysts at TD Cowen in a research report issued on Wednesday, Benzinga reports. They currently have a $100.00 price target on the Internet television network’s stock. TD Cowen‘s price target points to a potential upside of 53.36% from the company’s current price.

Other research analysts have also recently issued research reports about the company. CICC Research reduced their price objective on Netflix from $110.00 to $90.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 21st. Oppenheimer reiterated an “outperform” rating and set a $80.00 target price (down from $85.00) on shares of Netflix in a report on Wednesday. Wells Fargo & Company lowered shares of Netflix from a “neutral” rating to an “underweight” rating and dropped their price objective for the company from $80.00 to $57.00 in a research note on Friday, September 18th. Jefferies Financial Group set a $85.00 target price on shares of Netflix and gave the stock a “buy” rating in a research report on Thursday, October 15th. Finally, KeyCorp dropped their price target on shares of Netflix from $92.00 to $85.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 13th. Three equities 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. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $89.71.

Netflix Trading Down 5.1%

NFLX traded down $3.48 during trading on Wednesday, hitting $65.21. 77,701,285 shares of the company’s stock were exchanged, compared to its average volume of 42,510,371. Netflix has a 1 year low of $64.10 and a 1 year high of $116.73. The stock has a 50 day moving average price of $74.92 and a 200 day moving average price of $80.20. The firm has a market cap of $271.52 billion, a P/E ratio of 20.52, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last issued its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. During the same quarter last year, the firm posted $0.59 EPS. The business’s revenue for the quarter was up 11.9% compared to the same quarter last year. As a group, analysts expect that Netflix will post 3.59 EPS for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, CFO Spencer Neumann sold 9,248 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard N. Barton sold 720 shares of the 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 transaction, the director owned 2,460 shares in the company, valued at $185,164.20. This trade 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. In the last three months, insiders have sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. bought a new position in shares of Netflix in the second quarter worth approximately $24,902,221,000. State Street Corp lifted its position in Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock valued at $12,861,252,000 after purchasing an additional 8,474,820 shares during the last quarter. Bank of America Corp DE lifted its position in Netflix by 4.3% during the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock valued at $5,571,201,000 after purchasing an additional 2,376,349 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in Netflix in the 2nd quarter worth approximately $1,906,482,000. Finally, Legal & General Group Plc purchased a new position in Netflix in the 2nd quarter worth approximately $1,886,526,000. Institutional investors own 80.93% of the company’s stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix reported third-quarter adjusted EPS of $0.87, above the $0.82 analyst consensus, while revenue of $12.87 billion was broadly in line with expectations. Net income rose about 44% year over year to $3.66 billion, and operating margin expanded to 34.6%. Netflix slides as weak profit, ad outlook intensify investor anxiety
• Positive Sentiment: Management continues to target double-digit revenue growth and expects advertising revenue to grow more than 80% in 2026. Netflix also pointed to pricing, its content pipeline and live events—including NFL programming—as potential drivers of future engagement and membership. NFLX Q3 Earnings Call Highlights Advertising Growth and Content Strategy
• Neutral Sentiment: Some analysts view the decline as a valuation opportunity. BMO cited substantial upside, while TD Cowen maintained a Buy rating with a $100 target; however, JPMorgan, Guggenheim and Bank of America reduced their targets, reflecting greater uncertainty around execution and growth.
• Negative Sentiment: Netflix lowered its 2026 advertising-revenue forecast to approximately $2.7 billion from $3 billion because ad-product rollouts are taking longer than expected. The shortfall undermines a key part of the company’s growth strategy. Netflix Cut Its Ad Revenue Forecast by $300 Million
• Negative Sentiment: Fourth-quarter revenue guidance of roughly $13.4 billion fell short of Wall Street expectations, implying another slowdown in sales growth. The company also reduced its 2026 free-cash-flow outlook to about $12 billion, while restructuring costs are expected to pressure fourth-quarter margins.
• Negative Sentiment: Management acknowledged investor concern about stagnant viewing-hour growth, particularly in the U.S. and Canada, and said content execution needs to improve. Analysts are questioning whether Netflix’s large content budget still provides a durable advantage against YouTube, TikTok and increasingly competitive streaming services. Is Netflix losing one of its longest-standing edge?

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.