Netflix (NASDAQ:NFLX) Rating Increased to Buy at Arete Research

Netflix (NASDAQ:NFLX) was upgraded by research analysts at Arete Research from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Friday.

A number of other equities research analysts also recently issued reports on the company. President Capital upgraded Netflix from a “neutral” rating to a “buy” rating and set a $130.00 price objective on the stock in a research report on Monday, November 3rd. Piper Sandler reissued a “positive” rating and set a $103.00 target price (down from $140.00) on shares of Netflix in a research report on Wednesday, January 21st. Jefferies Financial Group restated a “buy” rating on shares of Netflix in a research report on Wednesday, January 21st. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $100.00 price objective (down from $112.00) on shares of Netflix in a research note on Wednesday, January 21st. Finally, Phillip Securities upgraded shares of Netflix from a “sell” rating to a “moderate buy” rating and boosted their price objective for the company from $95.00 to $100.00 in a research report on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $115.52.

Netflix Trading Up 2.3%

Shares of NFLX opened at $84.58 on Friday. The stock has a market capitalization of $357.11 billion, a PE ratio of 33.47, a P/E/G ratio of 1.47 and a beta of 1.71. The company’s fifty day moving average is $85.79 and its 200 day moving average is $104.58. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19. Netflix has a fifty-two week low of $75.01 and a fifty-two week high of $134.12.

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

Insider Transactions at Netflix

In related news, Director Bradford L. Smith sold 31,790 shares of the business’s stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the completion of the transaction, the director owned 79,690 shares in the company, valued at $7,081,253.40. The trade was a 28.52% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Gregory K. Peters sold 105,781 shares of Netflix stock in a transaction that occurred on Thursday, January 29th. The stock was sold at an average price of $82.94, for a total transaction of $8,773,476.14. Following the completion of the sale, the chief executive officer owned 122,140 shares of the company’s stock, valued at $10,130,291.60. This trade represents a 46.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 1,399,163 shares of company stock worth $129,899,103. 1.37% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp raised its holdings in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC raised its holdings in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after buying an additional 89,558,684 shares during the period. Capital World Investors lifted its position in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley boosted its stake in Netflix by 903.0% during the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after buying an additional 76,840,318 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix formally declined to match Paramount Skydance’s higher offer for Warner Bros. Discovery, saying the price required made the deal “no longer financially attractive.” Exiting the bidding reduces the risk of a massive, debt‑heavy acquisition and preserves cash for content investment; Netflix will also receive a reported $2.8 billion breakup fee. Netflix Drops Warner Bros Bid — Yahoo
• Positive Sentiment: Market reaction and derivatives flow show investor approval: shares rallied after the withdrawal and there was heavy call‑option volume, indicating traders are positioning for further upside. Reuters: Netflix, Paramount shares jump Traders Purchase High Volume of Netflix Call Options
• Neutral Sentiment: Warner Bros. Discovery’s board determined Paramount’s $31/share offer may be a “Company Superior Proposal,” which triggered Netflix’s option to match within a four‑business‑day window; the board’s decision largely determined the outcome of the bidding contest. NYTimes: Warner Bros Deems Paramount Bid Superior
• Neutral Sentiment: Regulatory and political scrutiny remains a wildcard (DOJ interest and state AG letters were reported earlier), which could have complicated any large combination; walking away reduces that near‑term regulatory risk for Netflix. Reuters: 11 US states urge DOJ probe
• Negative Sentiment: Political backlash and allegations of favoritism around the bidding process (senior lawmakers publicly weighed in) could keep media‑M&A under a microscope and raise policy risk for large deals in the sector. Benzinga: Elizabeth Warren Questions Trump’s Role
• Negative Sentiment: Although the exit is welcomed by many investors, the situation highlights ongoing strategic risks: prior deal uncertainty pressured the stock and raised questions about how management balances M&A ambition with continued heavy content spending. Business Insider: Why Netflix Walked

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.