Netflix (NASDAQ:NFLX) Trading 3.9% Higher – What’s Next?

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

More Netflix News

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

Wall Street Analyst Weigh In

Several brokerages have issued reports on NFLX. 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. Sanford C. Bernstein reiterated an “outperform” rating on shares of Netflix in a research note on Thursday, June 4th. Wells Fargo & Company initiated coverage on shares of Netflix in a research note on Monday, March 9th. They issued an “equal weight” rating and a $105.00 price objective for the company. HSBC upped their target price on Netflix from $106.00 to $114.00 and gave the stock a “buy” rating in a report on Friday, April 10th. Finally, Weiss Ratings downgraded Netflix from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $114.26.

Netflix Stock Up 3.9%

The stock has a market capitalization of $312.40 billion, a PE ratio of 23.96, a price-to-earnings-growth ratio of 0.94 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The business’s fifty day moving average price is $84.49 and its two-hundred day moving average price is $88.63.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. The firm had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company’s revenue was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities research analysts forecast that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Buying and Selling at Netflix

In other Netflix news, insider David A. Hyman sold 5,722 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at $27,842,088. This represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Adam Neumann sold 9,253 shares of the firm’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 928,469 shares of company stock valued at $82,947,401. Corporate insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in shares of Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the period. State Street Corp increased its stake in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC raised its position in Netflix by 892.0% in the fourth 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 during the period. Capital World Investors grew its holdings in shares of 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, Price T Rowe Associates Inc. MD grew its holdings in shares of Netflix by 685.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

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.