Netflix (NASDAQ:NFLX) Hits New 12-Month Low on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s share price reached a new 52-week low during trading on Friday after KGI Securities downgraded the stock from an outperform rating to a neutral rating. The stock traded as low as $65.65 and last traded at $65.89, with a volume of 5877751 shares. The stock had previously closed at $74.35.

NFLX has been the topic of a number of other reports. New Street Research lifted their price target on Netflix from $96.00 to $102.00 in a report on Friday, April 17th. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. Rosenblatt Securities reiterated a “neutral” rating and set a $95.00 target price on shares of Netflix in a research note on Tuesday. Citigroup reissued a “buy” rating and issued a $100.00 price target (down from $115.00) on shares of Netflix in a report on Thursday, July 9th. Finally, TD Cowen reduced their price target on shares of Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $108.56.

Insiders Place Their Bets

In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the transaction, the director owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,722 shares of Netflix stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at $27,842,088. The trade was a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 899,839 shares of company stock worth $80,141,661 in the last ninety days. 1.24% of the stock is owned by corporate insiders.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: UBS Group kept a Buy rating on Netflix despite cutting its price target to $115 from $130, implying meaningful upside from current levels.
• Positive Sentiment: Wedbush maintained an Outperform rating, though it lowered its target to $105 from $118, signaling continued confidence in Netflix’s long-term earnings power.
• Positive Sentiment: TD Cowen, Needham, Citi, and Canaccord all reiterated bullish ratings, citing margin expansion, ad growth, AI-driven efficiency, and Netflix’s structural growth story.
• Neutral Sentiment: Netflix posted EPS of $0.80, slightly ahead of estimates, but revenue of $12.56 billion came in just below expectations, making the quarter mixed rather than outright weak.
• Neutral Sentiment: Management highlighted future growth areas such as advertising, live events, creator content, podcasts, and vertical video, which could help offset slowing viewing growth over time.
• Negative Sentiment: Multiple reports say investors are worried Netflix may be entering a period of slower growth, with second-quarter results and guidance failing to restore confidence in the stock’s premium valuation. Reuters article
• Negative Sentiment: Barclays, Pivotal Research, and Erste Group all cut expectations or estimates, reflecting a more cautious stance after the earnings report and adding to near-term pressure on NFLX. Benzinga article

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of NFLX. First Financial Corp IN increased its position in shares of Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. raised its holdings in Netflix by 885.2% during the 4th 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 during the last quarter. Turning Point Benefit Group Inc. boosted its holdings in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC bought a new stake in shares of Netflix in the 3rd quarter worth approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in Netflix during the 4th quarter valued at $26,000. 80.93% of the stock is owned by institutional investors.

Netflix Stock Down 10.6%

The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $279.73 billion, a PE ratio of 21.36, a price-to-earnings-growth ratio of 0.94 and a beta of 1.52. The company’s fifty day simple moving average is $80.52 and its 200 day simple moving average is $87.03.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company’s quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the firm posted $0.72 earnings per share. Analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

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.