Netflix (NASDAQ:NFLX) Trading 4.7% Higher – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX) shares shot up 4.7% on Thursday . The stock traded as high as $78.44 and last traded at $77.65. Approximately 54,443,650 shares changed hands during mid-day trading, an increase of 20% from the average session volume of 45,424,070 shares. The stock had previously closed at $74.19.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix rallied after reports clarified that a large-scale NBCUniversal acquisition was not an imminent goal, easing takeover-related anxiety and helping investors focus back on fundamentals. Why Netflix (NFLX) Stock Is Up Today
• Positive Sentiment: Analyst commentary and investor coverage highlighted Netflix’s ad growth, pricing power, and improving free cash flow outlook as key drivers that could support the stock into earnings. Netflix Gears Up to Report Q2 Earnings: Buy, Sell or Hold the Stock?
• Positive Sentiment: Netflix’s recent AI advertising partnership with Omnicom Media Group boosted sentiment by reinforcing the company’s monetization strategy for its ad-supported tier. Netflix (NFLX) Is Up 9.5% After AI Ad Tie-Up With Omnicom Media Group – Has The Bull Case Changed?
• Neutral Sentiment: Several articles framed Netflix as a potential value or turnaround idea after a sharp six-month decline, but these were mostly opinion pieces rather than new company-specific catalysts. Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care
• Neutral Sentiment: Coverage from Jim Cramer and other commentators argued the market may be too pessimistic about Netflix’s growth, but this did not reflect a new operating update. Jim Cramer Believes the Market Is Wrong About Netflix
• Negative Sentiment: A TipRanks AI Analyst downgrade and reduced price target added caution, citing growing near-term risks for Netflix (NFLX). AI Analyst Downgrades Netflix Stock, Cuts Price Target as Near-Term Risks Grow
• Negative Sentiment: Broader commentary still notes Netflix’s stock has lagged the market over the past six months, with softer quarterly results contributing to investor disappointment. Netflix (NFLX): 3 Reasons We Love This Stock

Wall Street Analyst Weigh In

NFLX has been the subject of a number of research reports. HSBC boosted their price target on Netflix from $106.00 to $114.00 and gave the company a “buy” rating in a research report on Friday, April 10th. Guggenheim reaffirmed a “buy” rating and issued a $120.00 price objective on shares of Netflix in a research note on Friday, May 15th. Weiss Ratings lowered Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, June 26th. China Renaissance boosted their target price on Netflix from $90.00 to $100.00 and gave the stock a “hold” rating in a report on Friday, April 17th. Finally, Daiwa Securities Group increased their target price on shares of Netflix from $97.00 to $102.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Netflix presently has an average rating of “Moderate Buy” and a consensus target price of $114.26.

Netflix Price Performance

The firm has a 50-day moving average of $83.46 and a 200 day moving average of $88.29. The stock has a market capitalization of $326.97 billion, a price-to-earnings ratio of 25.08, a price-to-earnings-growth ratio of 0.99 and a beta of 1.52. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX) last posted 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 business had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period 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, sell-side analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Spencer Adam Neumann sold 9,253 shares of Netflix 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 sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $6,563,353.65. The trade was a 11.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 899,839 shares of company stock worth $80,141,661 over the last quarter. Company insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. First Financial Corp IN grew its position in shares of Netflix by 900.0% in the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its stake in Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. lifted its stake in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new position in Netflix in the third quarter worth $25,000. Finally, Cornerstone Financial Management LLC acquired a new position in Netflix in the fourth quarter worth $26,000. Institutional investors own 80.93% of the company’s stock.

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.