Netflix (NASDAQ:NFLX) Shares Climb 2.9% – Still a Buy?

Netflix, Inc. (NASDAQ:NFLX) shares rose 2.9% during trading on Thursday. The stock traded as high as $73.07 and last traded at $72.61. 40,035,997 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 42,258,301 shares. The stock had previously closed at $70.57.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and an $85 price target, suggesting the recent selloff has created upside potential if Netflix can stabilize growth and engagement. Netflix stock gets bullish analyst call ahead of next week’s earnings
• Positive Sentiment: Netflix secured rights to broadcast select 2030 FIFA World Cup matches in Spain and Andorra, potentially strengthening its content offering and helping attract or retain viewers. Netflix lands 2030 World Cup rights
• Neutral Sentiment: Investors are positioning for Netflix’s October 20 earnings report. Wall Street estimates for revenue, earnings and engagement metrics may determine whether management can support its full-year outlook and address slowing growth. Netflix Q3 earnings estimates
• Negative Sentiment: Netflix plans to eliminate roughly 1,000 jobs, or 6% of its workforce, its largest reduction since 2022. Management described the move as resource discipline and preparation for future investment, but the timing signals pressure from slower growth and intensifying competition. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Third-party data indicate U.S. app churn increased 16.6% while viewing engagement weakened. Analysts and investors fear subscribers are canceling more frequently as competition for attention increases, creating a key risk to Netflix’s growth and upcoming results. Netflix U.S. app churn warning

Analysts Set New Price Targets

Several brokerages have recently issued reports on NFLX. DZ Bank reissued a “buy” rating on shares of Netflix in a research report on Monday, July 20th. Wells Fargo & Company cut Netflix from a “neutral” rating to an “underweight” rating and reduced their price target for the stock from $80.00 to $57.00 in a research note on Friday, September 18th. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price objective for the company in a report on Sunday, July 19th. Weiss Ratings upgraded Netflix from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Finally, Wolfe Research reissued an “outperform” rating and set a $95.00 price objective (up from $84.00) on shares of Netflix in a research report on Tuesday, August 25th. Three research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and an average target price of $94.41.

Netflix Price Performance

The firm has a fifty day moving average price of $75.27 and a two-hundred day moving average price of $80.87. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $302.34 billion, a P/E ratio of 22.85, a P/E/G ratio of 0.99 and a beta of 1.62.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. Netflix’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same period in the prior year, the firm posted $0.72 EPS. On average, analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Insiders Place Their Bets

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 in the last three months. Corporate insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Merkkuri Wealth Advisors LLC purchased a new stake in Netflix in the first quarter worth about $31,000. Bayban lifted its position in shares of Netflix by 400.0% during the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after buying an additional 280 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd purchased a new position in shares of Netflix during the 2nd quarter valued at about $26,000. Bank of New Hampshire lifted its position in shares of Netflix by 900.0% during the 4th quarter. Bank of New Hampshire now owns 380 shares of the Internet television network’s stock valued at $36,000 after buying an additional 342 shares in the last quarter. Finally, Compound Global Advisors LLC bought a new position in shares of Netflix during the 2nd quarter valued at approximately $29,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.