Netflix (NASDAQ:NFLX) Stock Gets Price Target Cut from Morgan Stanley

Netflix (NASDAQ:NFLX) had its price target decreased by Morgan Stanley from $83.00 to $80.00 in a research report released on Thursday, MarketBeat Ratings reports. Morgan Stanley currently has an overweight rating on the Internet television network’s stock.

Other equities analysts have also issued research reports about the company. Sanford C. Bernstein initiated coverage on Netflix in a research note on Monday, September 28th. They issued a “buy” rating on the stock. China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. Daiwa Securities Group decreased their target price on shares of Netflix from $102.00 to $76.00 and set an “outperform” rating for the company in a research report on Wednesday, July 22nd. Citigroup reiterated a “market perform” rating on shares of Netflix in a report on Monday, August 17th. Finally, Wedbush dropped their target price on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $94.70.

Netflix Price Performance

Shares of NFLX stock opened at $70.30 on Thursday. Netflix has a twelve month low of $65.08 and a twelve month high of $124.86. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock has a fifty day simple moving average of $75.46 and a two-hundred day simple moving average of $81.42. The stock has a market capitalization of $292.72 billion, a price-to-earnings ratio of 22.13, a P/E/G ratio of 0.99 and a beta of 1.62.

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

Insider Buying and Selling

In other Netflix news, CEO Theodore Sarandos sold 105,850 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the completion of the transaction, the chief executive officer owned 206,266 shares in the company, valued at approximately $15,063,605.98. This represents a 33.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 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, CEO Gregory Peters sold 27,312 shares of the firm’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer owned 120,931 shares in the company, valued at $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 179,045 shares of company stock valued at $13,132,194 in the last ninety days. Company insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently added to or reduced their stakes in the stock. Cornerstone Financial Management LLC acquired a new position in shares of Netflix during the 4th quarter worth about $26,000. Merkkuri Wealth Advisors LLC purchased a new stake in Netflix during the 1st quarter worth approximately $31,000. South Plains Financial Inc. purchased a new stake in Netflix during the 4th quarter worth approximately $33,000. Bayban raised its holdings in shares of Netflix by 400.0% during the first quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after acquiring an additional 280 shares during the last quarter. Finally, Clal Insurance Enterprises Holdings Ltd acquired a new position in shares of Netflix during the second quarter valued at approximately $26,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Morgan Stanley maintained an “overweight” rating while trimming its price target from $83 to $80, implying meaningful upside from recent trading levels. The lower target reflects caution, but the continued bullish rating provides some support for the investment case. Morgan Stanley Netflix price target report
• Positive Sentiment: Netflix is reportedly paying $200 million for U.S. rights to the 2027 Women’s World Cup. The event could provide valuable live-programming exposure and attract new viewers, although the rights fee adds to near-term content spending. Netflix 2027 Women’s World Cup rights report
• Neutral Sentiment: Netflix’s upcoming scripted series about the FTX collapse, “The Altruists,” is scheduled for November 19. The program could generate attention and engagement, but criticism from figures connected to the crypto industry creates some reputational risk. Netflix FTX series criticism report
• Negative Sentiment: Multiple reports say Netflix plans to eliminate about 5% of its workforce—potentially roughly 800 jobs—with an announcement possibly coming next week. While the cuts could reduce operating expenses and improve margins, investors may interpret them as evidence that management is responding to weaker engagement, intensifying competition from YouTube and pressure on growth. Netflix has not confirmed the plans. Los Angeles Times Netflix layoffs report
• Negative Sentiment: A reported $2.8 billion termination fee boosted Netflix’s cash balance, but it is a one-time payment rather than recurring streaming cash flow. Investors are being cautioned not to treat the windfall as evidence of stronger underlying earnings or content-financing capacity. Netflix termination fee and cash flow report

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.