Netflix (NASDAQ:NFLX) Rating Increased to Buy at Arete Research

Arete Research upgraded shares of Netflix (NASDAQ:NFLX) from a neutral rating to a buy rating in a research note issued to investors on Friday morning, MarketBeat Ratings reports.

NFLX has been the subject of several other research reports. The Goldman Sachs Group reissued a “neutral” rating and set a $100.00 price objective (down from $112.00) on shares of Netflix in a research note on Wednesday, January 21st. Weiss Ratings cut shares of Netflix from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, January 22nd. Morgan Stanley set a $110.00 price objective on Netflix and gave the stock an “overweight” rating in a report on Wednesday, January 21st. Rothschild & Co Redburn set a $120.00 target price on shares of Netflix in a research note on Wednesday, January 21st. Finally, HSBC dropped their target price on shares of Netflix from $107.00 to $106.00 and set a “buy” rating for the company in a report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and fifteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $115.91.

Netflix Stock Performance

Shares of NFLX stock traded up $11.65 during trading on Friday, reaching $96.24. 200,367,047 shares of the company’s stock traded hands, compared to its average volume of 44,207,788. The firm’s 50-day moving average is $85.83 and its 200 day moving average is $104.52. The company has a market capitalization of $406.34 billion, a P/E ratio of 38.08, a PEG ratio of 1.50 and a beta of 1.71. Netflix has a 1 year low of $75.01 and a 1 year high of $134.12. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.51.

Netflix (NASDAQ:NFLX) last issued its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01. The business had revenue of $12.05 billion for the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business’s revenue for the quarter was up 17.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Equities research analysts expect that Netflix will post 24.58 EPS for the current year.

Insider Buying and Selling at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $83.24, for a total value of $2,273,450.88. Following the sale, the chief executive officer directly owned 122,140 shares of the company’s stock, valued at $10,166,933.60. This represents a 18.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider David A. Hyman sold 5,727 shares of the stock in a transaction on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at approximately $25,623,066. This trade represents a 1.78% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,399,163 shares of company stock worth $129,899,103. Insiders own 1.37% of the company’s stock.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently modified their holdings of NFLX. First Financial Corp IN increased its stake in shares of Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. grew its stake in shares of Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock worth $25,000 after buying an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. increased its position in Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after buying an additional 268 shares in the last quarter. Imprint Wealth LLC bought a new stake in Netflix in the third quarter worth $25,000. Finally, Cornerstone Financial Management LLC bought a new stake in Netflix in the fourth quarter worth $26,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

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., ending the bidding war and securing a large breakup / termination payment that preserves cash and avoids taking on a complex, debt‑heavy asset. Netflix Receives Termination Fee After WBD Deal Collapse
• Positive Sentiment: Investors cheered the exit as it reduces near‑term strategic risk and potential integration headaches; commentators and analysts framed the decision as disciplined capital allocation, which helped lift shares. Netflix, Paramount shares jump as months-long fight for Warner ends
• Positive Sentiment: Regulatory and political risk eased — a planned Senate antitrust hearing tied to the deal was canceled after Netflix withdrew, removing a headline risk that would have attracted more scrutiny. After Netflix Drops Warner Bros. Bid, GOP Senator Cancels Planned Antitrust Hearing
• Positive Sentiment: Analysts and brokers responded with upgrades and higher price targets (Wolfe, Arete, Evercore coverage appears), supporting the rally and signaling refreshed bullish conviction. Wolfe Research adjusts price target on Netflix to $110 from $95; maintains outperform
• Positive Sentiment: Operational news also helped sentiment: Netflix expanded live sports/content reach by partnering with Apple to co‑broadcast the Canadian F1 Grand Prix, reinforcing content momentum outside M&A headlines. Apple and Netflix team up to air Formula 1 Canadian Grand Prix
• Neutral Sentiment: Market structure changed: Paramount Skydance looks set to win the Warner Bros. deal, which removes one strategic path for Netflix but also eliminates a costly contest; outcome may affect industry dynamics long‑term rather than Netflix’s near‑term earnings. Project Warrior: How Paramount beat Netflix in $110bn battle for Warner
• Negative Sentiment: Some opinion pieces warn of political/antitrust fallout and reputational/strategic implications from the episode (claims the fight became politicized and that Netflix’s positioning could invite scrutiny). These narratives could re‑emerge if Netflix pursues other large deals. Opinion | Why Netflix Lost Warner to Paramount

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.