Wall Street Zen Downgrades Netflix (NASDAQ:NFLX) to Hold

Netflix (NASDAQ:NFLX) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

A number of other research firms have also recently weighed in on NFLX. The Goldman Sachs Group decreased their price objective on Netflix from $1,310.00 to $1,300.00 and set a “neutral” rating for the company in a research report on Tuesday, September 30th. Barclays restated a “sell” rating and set a $1,100.00 price target (up previously from $1,000.00) on shares of Netflix in a research note on Wednesday, July 9th. Pivotal Research reiterated a “buy” rating on shares of Netflix in a research report on Thursday, July 10th. Citigroup reissued a “neutral” rating and issued a $1,295.00 price objective (up from $1,280.00) on shares of Netflix in a research note on Friday. Finally, Needham & Company LLC restated a “buy” rating and issued a $1,500.00 target price on shares of Netflix in a research note on Wednesday, September 10th. One analyst has rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating, nine have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Netflix presently has an average rating of “Moderate Buy” and an average price target of $1,335.00.

Netflix Trading Down 0.8%

Shares of Netflix stock opened at $1,153.32 on Friday. The company has a fifty day simple moving average of $1,207.36 and a 200-day simple moving average of $1,161.81. Netflix has a 12-month low of $677.88 and a 12-month high of $1,341.15. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58. The stock has a market cap of $490.08 billion, a price-to-earnings ratio of 49.14, a PEG ratio of 1.94 and a beta of 1.59.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, beating analysts’ consensus estimates of $7.07 by $0.12. Netflix had a return on equity of 42.50% and a net margin of 24.58%.The company had revenue of $11.08 billion during the quarter, compared to analysts’ expectations of $11.04 billion. During the same quarter in the previous year, the business earned $4.88 earnings per share. The firm’s revenue for the quarter was up 15.9% on a year-over-year basis. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. On average, equities analysts forecast that Netflix will post 24.58 EPS for the current fiscal year.

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 2,601 shares of the business’s stock in a transaction on Friday, August 1st. The stock was sold at an average price of $1,162.40, for a total value of $3,023,402.40. Following the completion of the transaction, the chief financial officer directly owned 3,691 shares of the company’s stock, valued at $4,290,418.40. The trade was a 41.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Theodore A. Sarandos sold 2,026 shares of the stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,160.62, for a total value of $2,351,416.12. Following the sale, the chief executive officer directly owned 15,168 shares in the company, valued at approximately $17,604,284.16. The trade was a 11.78% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 104,100 shares of company stock valued at $122,710,980 in the last ninety days. 1.37% of the stock is owned by insiders.

Institutional Trading of Netflix

A number of hedge funds have recently bought and sold shares of NFLX. Halbert Hargrove Global Advisors LLC grew its position in shares of Netflix by 100.0% in the first quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 13 shares during the period. Legacy Investment Solutions LLC purchased a new position in Netflix during the second quarter worth about $31,000. Stephens Consulting LLC boosted its stake in Netflix by 150.0% in the 2nd quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network’s stock worth $33,000 after buying an additional 15 shares during the last quarter. Rossby Financial LCC purchased a new stake in Netflix in the 2nd quarter valued at about $35,000. Finally, Flaharty Asset Management LLC acquired a new position in shares of Netflix during the 1st quarter valued at about $37,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.