Netflix (NASDAQ:NFLX) Stock Gets Price Target Trim from Bank of America

Netflix (NASDAQ:NFLX) had its target price trimmed by Bank of America from $105.00 to $90.00 in a research note issued to investors on Wednesday morning, Marketbeat reports. The brokerage currently has a buy rating on the Internet television network’s stock.

Several other research analysts also recently commented on the stock. Seaport Research Partners reiterated a “buy” rating and issued a $90.00 target price on shares of Netflix in a report on Monday. Needham & Company LLC cut shares of Netflix from a “buy” rating to a “hold” rating in a report on Wednesday. Pivotal Research lowered their price target on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Robert W. Baird set a $90.00 price objective on Netflix and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. Finally, Wells Fargo & Company cut Netflix from a “neutral” rating to an “underweight” rating and cut their price objective for the stock from $80.00 to $57.00 in a research report on Friday, September 18th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $89.59.

Netflix Trading Down 1.8%

NASDAQ:NFLX opened at $65.85 on Wednesday. Netflix has a 12 month low of $64.10 and a 12 month high of $116.73. The firm has a market cap of $270.40 billion, a price-to-earnings ratio of 22.88, a P/E/G ratio of 0.98 and a beta of 1.62. The company has a quick ratio of 1.14, a current ratio of 1.07 and a debt-to-equity ratio of 0.43. The company’s 50 day moving average is $74.27 and its 200-day moving average is $79.64.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, topping analysts’ consensus estimates of $0.82 by $0.05. The business had revenue of $12.87 billion during the quarter, compared to analysts’ expectations of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. Netflix’s revenue for the quarter was up 11.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.59 earnings per share. Equities analysts anticipate that Netflix will post 3.59 EPS for the current year.

Insider Buying and Selling at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This trade represents a 1.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of Netflix stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total value of $54,194.40. Following the sale, the director directly owned 2,460 shares in the company, valued at $185,164.20. The trade was a 22.64% decrease in their position. 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. Insiders sold 179,045 shares of company stock valued at $13,132,194 over the last quarter. Company insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Nykredit A S acquired a new position in Netflix in the second quarter worth about $105,697,000. Rockland Trust Co. boosted its holdings in Netflix by 27.5% during the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network’s stock valued at $15,253,000 after purchasing an additional 47,339 shares in the last quarter. Ritholtz Wealth Management boosted its holdings in Netflix by 25.0% during the first quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock valued at $10,235,000 after purchasing an additional 21,260 shares in the last quarter. Welch & Forbes LLC grew its stake in shares of Netflix by 3,464.5% in the 1st quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network’s stock valued at $11,389,000 after purchasing an additional 115,125 shares during the period. Finally, USS Investment Management Ltd grew its stake in shares of Netflix by 31.8% in the 1st quarter. USS Investment Management Ltd now owns 886,527 shares of the Internet television network’s stock valued at $85,244,000 after purchasing an additional 213,972 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix reported third-quarter EPS of $0.87, ahead of the $0.82 consensus estimate, while revenue reached $12.87 billion. Operating margin rose to 34.6%, supporting the argument that the core streaming business remains highly profitable. Can Netflix Stock Hold Margin Gains as Content Spending Keeps Growing?
• Positive Sentiment: Longer-term bulls argue that Netflix’s profitability, systematic share repurchases, local-language content, and continued subscriber retention could create meaningful upside after the sell-off. Bill Ackman has also returned to the stock and expects annualized returns above 20%. Bill Ackman Lost $400 Million on Netflix
• Positive Sentiment: Ark Invest’s Cathie Wood bought 18,000 Netflix shares, signaling that some growth-oriented investors view the two-year-low valuation as an opportunity. Cathie Wood Just Bought Netflix Stock
• Neutral Sentiment: Netflix is reportedly planning layoffs at its Bay Area headquarters. The cuts could reduce costs, but they also raise questions about operating priorities and employee productivity. Netflix Stock Slips as Layoffs Hit Bay Area Headquarters
• Neutral Sentiment: Paramount Skydance’s completed merger highlights intensifying competition for scale and content across the entertainment industry, potentially increasing pressure on Netflix to sustain its content advantage. Could Skydance Be Bigger Than Disney?
• Negative Sentiment: Management reduced its 2026 advertising-revenue outlook to approximately $2.7 billion from about $3 billion. Softer ad growth undermines a major part of Netflix’s expansion thesis and overshadowed the earnings beat. Netflix Cut Its 2026 Ad Forecast by $300 Million
• Negative Sentiment: Disappointing fourth-quarter revenue guidance and decelerating growth have led investors to discount the strong quarterly results. Netflix’s reduced 2026 free-cash-flow outlook is another concern as content spending continues to rise. Netflix Has Lower FCF Guidance
• Negative Sentiment: Several analysts lowered their price targets or ratings after the report. One fair-value estimate fell from $92.62 to $86.24, while UBS, Guggenheim, and Needham adopted more cautious views. Netflix Stock Fair Value Falls After Cautious Q3 Analyst Revisions
• Negative Sentiment: Reports indicate viewing time is declining even though subscribers are staying, suggesting weaker engagement. YouTube and lower-cost streaming alternatives may also be contributing to slower revenue growth. Netflix Is Losing Viewers

About Netflix

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.