Netflix’s (NFLX) “Neutral” Rating Reaffirmed at Rosenblatt Securities

Netflix (NASDAQ:NFLX)‘s stock had its “neutral” rating reiterated by equities researchers at Rosenblatt Securities in a research report issued to clients and investors on Friday, Benzinga reports. They presently have a $75.00 target price on the Internet television network’s stock. Rosenblatt Securities’ price target indicates a potential upside of 6.64% from the stock’s current price.

A number of other equities research analysts have also issued reports on the company. KGI Securities lowered Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target for the company. in a research report on Friday, July 17th. Seaport Research Partners lowered Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Daiwa Securities Group dropped their price target on Netflix from $102.00 to $76.00 and set an “outperform” rating for the company in a research report on Wednesday, July 22nd. Piper Sandler restated an “overweight” rating and issued a $85.00 price target (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Finally, TD Cowen restated a “buy” rating and issued a $100.00 price target on shares of Netflix in a research report on Monday, October 5th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and a consensus price target of $93.82.

Netflix Price Performance

Shares of Netflix stock traded down $2.28 during mid-day trading on Friday, reaching $70.33. 23,944,791 shares of the stock traded hands, compared to its average volume of 42,163,766. The business has a 50-day moving average of $75.25 and a 200 day moving average of $80.73. Netflix has a fifty-two week low of $65.08 and a fifty-two week high of $124.86. The stock has a market capitalization of $292.85 billion, a PE ratio of 22.11, a PEG ratio of 1.00 and a beta of 1.62. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The business had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter in the prior year, the firm earned $0.72 earnings per share. The business’s revenue was up 13.4% compared to the same quarter last year. On average, analysts predict that Netflix will post 3.59 EPS for the current year.

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at $15,063,605.98. This trade represents a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 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. Also, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction 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 transaction, the insider owned 316,100 shares of the company’s stock, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of NFLX. BlackRock Inc. acquired a new stake in shares of Netflix in the second quarter valued at $24,902,221,000. Invesco Ltd. raised its stake in shares of Netflix by 835.9% in the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock valued at $4,075,062,000 after acquiring an additional 38,818,947 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Netflix in the second quarter valued at $1,906,482,000. Legal & General Group Plc acquired a new stake in Netflix in the second quarter valued at $1,886,526,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Netflix in the second quarter valued at $1,481,303,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Former Disney and Fox executive Peter Rice will become Netflix’s chief content officer on October 26, replacing Bela Bajaria. Rice’s experience across scripted and unscripted programming, live sports, prestige television and theatrical distribution could help Netflix improve its content pipeline and viewer engagement. Netflix appoints Peter Rice as chief content officer
• Positive Sentiment: Jefferies upgraded NFLX to “strong buy” and cited pricing power and advertising growth as potential revenue supports. Wedbush maintained an “outperform” rating, while its revised $90 price target still implies substantial upside from current levels.
• Positive Sentiment: Options positioning ahead of the October 20 earnings release is bullish and suggests traders expect a significant post-earnings move. Analysts also point to expanding margins, higher advertising commitments and recent pricing gains as favorable factors. Options traders expect a large move in Netflix stock
• Neutral Sentiment: Netflix is scheduled to report third-quarter results after the market closes on October 20. Investors will focus on revenue growth, engagement, churn, advertising progress and management guidance. Current expectations suggest the quarter could deliver the company’s slowest revenue growth since mid-2023.
• Negative Sentiment: Netflix is cutting approximately 1,000 jobs, or 6% of its workforce, across product, technology, legal and human-resources functions. Management described the move as a resource-allocation and efficiency effort, but the scale and timing of the reductions signal that growth and viewing trends are under pressure. Netflix to lay off roughly 1,000 employees
• Negative Sentiment: Bajaria’s departure after nearly a decade, immediately following the layoffs, is being interpreted as a broader content strategy reset. Investors remain concerned about declining viewer engagement, rising churn, intensifying competition from other streamers and creator platforms, and the need for another breakout hit.
• Negative Sentiment: Analyst opinion remains divided: Rosenblatt reaffirmed a “neutral” rating with a $75 target, while other commentary warns that Netflix’s premium valuation is difficult to justify if subscriber growth and viewing time continue to slow.

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.