Netflix (NASDAQ:NFLX) Trading Up 1.3% – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX)’s stock price shot up 1.3% during mid-day trading on Wednesday . The stock traded as high as $78.32 and last traded at $77.99. 29,558,522 shares were traded during trading, a decline of 41% from the average session volume of 49,909,063 shares. The stock had previously closed at $77.00.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts and institutional buyers show conviction — Sanford C. Bernstein reaffirmed a “buy” rating and activists/hedge funds (eg. Coatue) have recently increased Netflix positions, signaling professional investor confidence that could support the share price. MarketScreener: Bernstein Buy Rating Seeking Alpha: Coatue Adds to NFLX
• Positive Sentiment: Bullish analyst narratives: some strategists (e.g., Gary Black) argue deal uncertainty is temporary and see meaningful upside (price-target commentary as high as ~$100), which can encourage buyers on the pullback. Benzinga: Gary Black Bullish on NFLX
• Positive Sentiment: Value/buy-the-dip commentary: mainstream outlets argue NFLX is attractive after a large pullback from all‑time highs, which can draw longer-term buyers. Fool: Why NFLX Is Worth Buying on This Pullback
• Neutral Sentiment: Netflix granted WBD a seven‑day waiver to let Paramount Skydance submit a “best and final” bid — this forces a quick resolution (Paramount has until Feb. 23) while preserving Netflix’s right to match; outcome could raise the ultimate price WBD commands and affect Netflix’s capital deployment. CNBC: Netflix Grants Waiver
• Neutral Sentiment: Warner Bros. Discovery is soliciting Paramount’s best offer while still recommending Netflix’s deal; a higher competing bid could force Netflix to raise its price or walk away — either scenario changes the company’s strategic and financial outlook. MarketBeat: WBD Seeks PSKY Best and Final Offer
• Negative Sentiment: IP and AI litigation risk — Netflix has warned ByteDance over AI-generated Squid Game videos and threatened litigation; legal fights over AI content could raise costs, create reputational headlines, and complicate international relationships. Benzinga: Netflix vs ByteDance AI/IP Warning
• Negative Sentiment: Deal overhang and recent share weakness: commentators note a multi‑month slide (large % off highs) and investor impatience over deal execution/financing risk — this increases volatility and downside risk if the WBD path becomes more uncertain. TipRanks: Deal Risk Overblown / Investor Patience
• Negative Sentiment: Theatrical/industry pushback: cinema exhibitors (e.g., Cinemark CEO) want clearer commitments from Netflix on theatrical windows — a contentious theatrical strategy could complicate the WBD deal rationale and future studio economics. Deadline: Cinemark on Netflix Theatrical Commitments

Analyst Ratings Changes

A number of research firms recently commented on NFLX. Guggenheim lowered their price target on Netflix from $145.00 to $130.00 and set a “buy” rating for the company in a research report on Wednesday, January 21st. Arete Research upped their target price on shares of Netflix from $83.30 to $108.40 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. Weiss Ratings downgraded shares of Netflix from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, January 22nd. Freedom Capital raised shares of Netflix from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, January 27th. Finally, DZ Bank restated a “buy” rating on shares of Netflix in a report on Wednesday, December 17th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and sixteen have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $116.08.

Netflix Trading Up 1.3%

The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. The firm has a market cap of $329.29 billion, a P/E ratio of 30.86, a price-to-earnings-growth ratio of 1.37 and a beta of 1.71. The firm’s 50-day simple moving average is $87.87 and its 200 day simple moving average is $106.42.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion during the quarter, compared to analyst estimates of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. Netflix’s quarterly revenue was up 17.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current year.

Insider Transactions at Netflix

In other news, insider David A. Hyman sold 5,727 shares of the stock in a transaction on Monday, February 9th. The stock was sold at an average price of $81.06, for a total transaction of $464,230.62. Following the completion of the transaction, the insider owned 316,100 shares in the company, valued at approximately $25,623,066. This represents a 1.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Reed Hastings sold 390,970 shares of Netflix stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $83.63, for a total value of $32,696,821.10. Following the completion of the sale, the director directly owned 3,940 shares of the company’s stock, valued at approximately $329,502.20. This trade represents a 99.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,399,163 shares of company stock valued at $129,899,103. 1.37% of the stock is currently owned by insiders.

Institutional Trading of Netflix

Hedge funds and other institutional investors have recently modified their holdings of the business. One Day In July LLC lifted its holdings in Netflix by 3.3% during the 2nd quarter. One Day In July LLC now owns 278 shares of the Internet television network’s stock worth $372,000 after purchasing an additional 9 shares in the last quarter. Able Wealth Management LLC grew its holdings in Netflix by 1.2% during the 2nd quarter. Able Wealth Management LLC now owns 763 shares of the Internet television network’s stock valued at $1,022,000 after buying an additional 9 shares in the last quarter. One Wealth Capital Management LLC increased its position in shares of Netflix by 0.5% during the second quarter. One Wealth Capital Management LLC now owns 1,767 shares of the Internet television network’s stock valued at $2,366,000 after buying an additional 9 shares during the period. Bell Investment Advisors Inc increased its position in shares of Netflix by 3.1% during the second quarter. Bell Investment Advisors Inc now owns 298 shares of the Internet television network’s stock valued at $399,000 after buying an additional 9 shares during the period. Finally, Weaver Consulting Group lifted its holdings in shares of Netflix by 4.1% in the second quarter. Weaver Consulting Group now owns 231 shares of the Internet television network’s stock worth $309,000 after buying an additional 9 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.

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.