Netflix (NASDAQ:NFLX) Trading Up 1.4% – Here’s Why

Shares of Netflix, Inc. (NASDAQ:NFLX) shot up 1.4% during mid-day trading on Thursday . The company traded as high as $90.37 and last traded at $89.30. 28,437,982 shares traded hands during trading, a decline of 38% from the average session volume of 45,640,484 shares. The stock had previously closed at $88.09.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix and iHeartMedia announced that The Breakfast Club will stream live daily on Netflix, marking the platform’s first daily live program and highlighting its move deeper into live content. Article Title
• Positive Sentiment: Bank of America-backed reports say Netflix’s ad-supported tier surpassed 250 million monthly viewers globally, a sign that the ad business is scaling quickly and could become a bigger profit driver. Article Title
• Positive Sentiment: Analysts and media coverage continue to point to Netflix’s sports strategy, including NFL games and MMA-related viewership gains, as another way to attract subscribers and advertisers. Article Title
• Neutral Sentiment: Co-founder Reed Hastings said entertainment may be the least affected by AI because audiences still prefer human conflict and storytelling, which is supportive of the long-term thesis but not an immediate earnings catalyst. Article Title
• Neutral Sentiment: Recent pieces comparing Netflix’s revenue trends with Disney’s mostly reinforce that Netflix has delivered more consistent growth, but they do not add new company-specific news. Article Title
• Negative Sentiment: Some commentary questions whether Netflix’s valuation may already be pricing in too much future growth after the recent share price pullback, which could limit upside if execution slows. Article Title

Analysts Set New Price Targets

A number of research firms recently issued reports on NFLX. Citizens Jmp reiterated a “market perform” rating on shares of Netflix in a research report on Wednesday, April 15th. Piper Sandler reiterated an “overweight” rating and set a $115.00 price objective (up from $103.00) on shares of Netflix in a research report on Friday, April 17th. Wolfe Research reiterated an “outperform” rating and set a $107.00 price objective on shares of Netflix in a research report on Friday, April 17th. Wells Fargo & Company started coverage on shares of Netflix in a research report on Monday, March 9th. They issued an “equal weight” rating and a $105.00 price target for the company. Finally, Deutsche Bank Aktiengesellschaft upped their price target on shares of Netflix from $98.00 to $100.00 and gave the company a “hold” rating in a research report on Tuesday, April 14th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $114.82.

Netflix Stock Performance

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 company’s 50-day moving average price is $94.16 and its two-hundred day moving average price is $94.34. The company has a market capitalization of $376.02 billion, a price-to-earnings ratio of 28.84, a PEG ratio of 1.14 and a beta of 1.55.

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

Insider Buying and Selling at Netflix

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the transaction, the chief executive officer directly owned 284,804 shares of the company’s stock, valued at $25,054,207.88. This represents a 8.75% 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 the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Reed Hastings sold 420,550 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the transaction, the director directly owned 3,940 shares in the company, valued at approximately $376,230.60. This represents a 99.07% 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 1,422,769 shares of company stock valued at $135,144,073 over the last 90 days. Insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of NFLX. First Financial Corp IN boosted its stake in Netflix by 900.0% during the fourth 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 shares of Netflix by 885.2% in the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after buying an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. lifted its stake in shares of Netflix by 13,400.0% in the fourth 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 position in shares of Netflix in the third quarter valued at $25,000. Finally, Cornerstone Financial Management LLC bought a new position in shares of Netflix in the fourth quarter valued at $26,000. 80.93% of the stock is owned by institutional investors.

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.