Netflix (NASDAQ:NFLX) Raised to “Buy” at Arete Research

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

Several other analysts have also weighed in on NFLX. Cfra lowered shares of Netflix from a “strong-buy” rating to a “hold” rating and set a $100.00 price objective for the company. in a report on Monday, January 5th. KGI Securities upgraded Netflix from a “neutral” rating to an “outperform” rating and set a $135.00 price target on the stock in a research report on Monday, November 3rd. New Street Research cut their price objective on Netflix from $100.00 to $96.00 and set a “neutral” rating for the company in a research report on Thursday, January 22nd. Moffett Nathanson reduced their price objective on Netflix from $140.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, January 21st. Finally, TD Cowen lowered their target price on Netflix from $115.00 to $112.00 and set a “buy” rating for the company in a research note on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and fifteen have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $115.52.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $84.58 on Friday. The company has a market cap of $357.11 billion, a price-to-earnings ratio of 33.47, a PEG ratio of 1.47 and a beta of 1.71. The business has a 50 day moving average price of $85.79 and a 200 day moving average price of $104.58. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. Netflix has a twelve month low of $75.01 and a twelve month high of $134.12.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results 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. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The company had revenue of $12.05 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the company earned $0.43 earnings per share. The company’s quarterly revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Research analysts predict that Netflix will post 24.58 earnings per share for the current year.

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $81.27, for a total transaction of $751,584.96. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,996,669.49. This trade represents a 11.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gregory K. Peters sold 105,781 shares of Netflix stock in a transaction that occurred on Thursday, January 29th. The shares were 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 in the company, valued at $10,130,291.60. This trade represents a 46.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,399,163 shares of company stock valued at $129,899,103 over the last ninety days. Company insiders own 1.37% of the company’s stock.

Institutional Investors Weigh In On Netflix

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in Netflix by 0.4% during the third quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock valued at $46,183,983,000 after acquiring an additional 142,238 shares in the last quarter. CIBC Capital Markets Europe S.A. lifted its stake in Netflix by 171.4% in the 3rd quarter. CIBC Capital Markets Europe S.A. now owns 66,503 shares of the Internet television network’s stock worth $79,732,000 after purchasing an additional 42,000 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. grew its position in shares of Netflix by 6.6% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 302,182 shares of the Internet television network’s stock valued at $362,292,000 after purchasing an additional 18,837 shares in the last quarter. NEOS Investment Management LLC increased its holdings in shares of Netflix by 64.6% in the third quarter. NEOS Investment Management LLC now owns 177,297 shares of the Internet television network’s stock worth $212,565,000 after purchasing an additional 69,570 shares during the last quarter. Finally, Bornite Capital Management LP bought a new stake in shares of Netflix in the third quarter worth about $29,973,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Netflix

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.