Netflix (NASDAQ:NFLX) Trading Up 3.9% – Should You Buy?

Shares of Netflix, Inc. (NASDAQ:NFLX) traded up 3.9% on Wednesday . The stock traded as high as $74.36 and last traded at $74.19. 43,399,493 shares traded hands during trading, a decline of 4% from the average session volume of 45,353,273 shares. The stock had previously closed at $71.40.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Multiple articles argue Netflix looks attractive near current levels because the stock has fallen sharply, pushing the valuation to one of its cheapest points in years while revenue and margins continue to improve. Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care
• Positive Sentiment: Investors are also focused on Netflix’s advertising tier, which is scaling quickly and could generate about $3 billion in 2026 revenue, adding another growth engine beyond subscriptions. Netflix Nearing 52-Week Low: Should You Buy?
• Positive Sentiment: Analysts remain broadly constructive, with some buy ratings still in place and consensus targets implying significant upside from recent trading levels. Should You Buy Netflix Stock Right Now?
• Neutral Sentiment: Netflix’s Spectrum App Store deal with Charter expands distribution and may make subscriptions easier to buy and manage, but the immediate stock impact appears modest. Netflix (NFLX) Lands Spectrum App Store Deal To Widen Streaming Access
• Neutral Sentiment: News that a director was sentenced for defrauding Netflix out of $11 million is negative in tone, but it is an isolated legal cleanup item rather than a core operating issue for the company. Director Who Defrauded Netflix Gets 30-Month Prison Term
• Negative Sentiment: The main near-term pressure on NFLX remains the sharp share-price decline itself, with recent market commentary noting the stock has been falling even as the broader market has rallied, reflecting investor caution ahead of upcoming earnings. Netflix (NFLX) Stock Slides as Market Rises: Facts to Know Before You Trade

Analyst Upgrades and Downgrades

Several research firms recently issued reports on NFLX. Sanford C. Bernstein reiterated an “outperform” rating on shares of Netflix in a report on Thursday, June 4th. Needham & Company LLC reiterated a “buy” rating on shares of Netflix in a research note on Friday, April 17th. New Street Research lifted their price objective on shares of Netflix from $96.00 to $102.00 in a report on Friday, April 17th. KeyCorp reiterated an “overweight” rating and set a $115.00 target price (up from $108.00) on shares of Netflix in a report on Tuesday, April 14th. Finally, Barclays set a $110.00 price target on shares of Netflix and gave the stock an “equal weight” rating in a research note on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and an average target price of $114.26.

Netflix Stock Up 3.9%

The firm’s fifty day simple moving average is $84.49 and its 200 day simple moving average is $88.63. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The company has a market cap of $312.40 billion, a price-to-earnings ratio of 23.96, a PEG ratio of 0.94 and a beta of 1.50.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data 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 during 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 company’s revenue for the quarter was up 16.2% on a year-over-year basis. During the same period in the previous year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Sell-side analysts predict that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Reed Hastings sold 407,550 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director directly owned 3,940 shares of the company’s stock, valued at approximately $366,932.20. The trade was a 99.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total value of $2,422,301.28. Following the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $10,725,370.39. This trade represents a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 928,469 shares of company stock valued at $82,947,401 over the last three months. 1.24% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Netflix

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in shares of Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp boosted 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 purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC boosted 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 purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors increased its position in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Finally, Morgan Stanley raised its stake in shares of Netflix by 903.0% during the 4th 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 in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

About Netflix

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.