Netflix (NASDAQ:NFLX) Stock Price Up 2% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s stock price shot up 2% during mid-day trading on Wednesday. The stock traded as high as $64.56 and last traded at $64.54. 28,700,415 shares changed hands during trading, a decline of 33% from the average daily volume of 42,663,793 shares. The stock had previously closed at $63.26.

Latest Netflix News

These are some of the NFLX news items that stood out recently:

• Neutral Sentiment: Netflix expects about $12 billion in free cash flow for 2026 and spent more than $10.7 billion on share repurchases through September. The figures highlight substantial cash generation, though the article questions whether buybacks leave room for a dividend. Article: Will Netflix Ever Pay a Dividend?
• Negative Sentiment: Coverage cites slowing growth and signs viewers are watching less, raising concerns about Netflix’s outlook. Management has made content-leadership changes, but investors may wait for evidence those moves improve engagement and growth. Article: Why Netflix Stock Plunged 11% in October
• Negative Sentiment: Co-CEO Gregory Peters sold 27,312 shares for about $1.74 million, reducing his direct holdings by 18.61%. Insider sales can weigh on sentiment, although the filing alone does not establish the reason for the sale. Article: Netflix CEO Gregory Peters Sells 27,312 Shares

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Oppenheimer reissued an “outperform” rating and set a $80.00 price objective (down from $85.00) on shares of Netflix in a report on Wednesday, October 21st. Canaccord Genuity Group set a $110.00 target price on Netflix in a report on Wednesday, October 21st. Robert W. Baird set a $90.00 target price on Netflix and gave the company an “outperform” rating in a research report on Wednesday, July 22nd. Argus set a $95.00 price target on Netflix and gave the company a “buy” rating in a research note on Thursday, October 22nd. Finally, Barclays set a $65.00 price target on Netflix and gave the stock an “equal weight” rating in a report on Wednesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $89.14.

Netflix Price Performance

The business has a 50-day simple moving average of $70.32 and a 200 day simple moving average of $80.76. The stock has a market cap of $265.02 billion, a P/E ratio of 18.65, a price-to-earnings-growth ratio of 0.94 and a beta of 1.62. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.82 by $0.05. The company had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The firm’s revenue was up 11.9% compared to the same quarter last year. During the same period last year, the company earned $0.59 earnings per share. On average, analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $66.20, for a total value of $1,808,054.40. Following the sale, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at approximately $11,846,754.80. This represents a 13.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David A. Hyman sold 5,727 shares of the company’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $64.55, for a total transaction of $369,677.85. Following the completion of the sale, the insider directly owned 166,100 shares in the company, valued at approximately $10,721,755. This represents a 3.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 89,024 shares of company stock worth $5,788,733. Company insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

A number of institutional investors have recently bought and sold shares of NFLX. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix in the 2nd quarter worth about $26,000. Pathway Financial Advisers LLC bought a new stake in shares of Netflix during the 3rd quarter valued at about $26,000. Sawyer & Company Inc bought a new stake in shares of Netflix during the 3rd quarter valued at about $27,000. Compound Global Advisors LLC bought a new stake in shares of Netflix during the 2nd quarter valued at about $29,000. Finally, Burnham & Co LLC acquired a new stake in Netflix during the second quarter worth approximately $29,000. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.