Netflix (NASDAQ:NFLX) Trading Up 1.7% – Should You Buy?

Shares of Netflix, Inc. (NASDAQ:NFLX) shot up 1.7% during trading on Wednesday . The company traded as high as $73.74 and last traded at $73.63. 43,249,703 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 45,946,273 shares. The stock had previously closed at $72.39.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix secured a multiyear international licensing agreement with AMC Global Media for The Walking Dead universe, including the original series and six spinoffs. The franchise will expand Netflix’s content offering in markets such as the U.K., Italy, Australia and New Zealand beginning in 2027, although reports put the deal’s value at approximately $500 million. Flipkart ties up with Netflix to offer loyalty members mobile streaming plan
• Positive Sentiment: Netflix partnered with Walmart-owned Flipkart to provide qualifying loyalty-program members with a monthly mobile Netflix subscription. The arrangement could encourage repeat purchases and support subscriber acquisition in India, though the direct financial impact is likely modest initially. Netflix secures The Walking Dead Universe streaming rights outside the US
• Neutral Sentiment: Anne Sweeney resigned from Netflix’s board. The company said the departure was not related to any disagreement, reducing the likelihood that investors view it as an immediate governance concern. Anne Sweeney resigns from Netflix board
• Negative Sentiment: The main pressure remains Netflix’s second-quarter revenue miss: revenue was $12.56 billion versus expectations of $12.58 billion, even though EPS of $0.80 narrowly exceeded estimates. The shortfall has fueled concerns that the company’s rapid growth is moderating and contributed to the stock’s decline toward a 52-week low. Netflix slides to 52-week low following Q2 earnings
• Negative Sentiment: Erste Group Bank reduced its FY2027 EPS estimate, adding to the market’s concerns about future earnings growth and valuation.
• Negative Sentiment: A producer is suing Netflix for $105 million over an allegedly lost copy of an unreleased Nicolas Cage film. The claim creates legal and reputational risk, although its ultimate financial impact remains uncertain. Producer sues Netflix over lost unreleased Nicolas Cage movie

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Barclays decreased their price target on shares of Netflix from $85.00 to $80.00 and set an “equal weight” rating for the company in a research report on Friday, July 17th. Rosenblatt Securities set a $75.00 price objective on Netflix and gave the company a “neutral” rating in a research report on Friday, July 17th. TD Cowen reduced their price objective on Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Jefferies Financial Group decreased their target price on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research report on Wednesday, June 10th. Finally, The Goldman Sachs Group lowered Netflix from an “underweight” rating to a “sell” rating in a research note on Monday, July 20th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $103.48.

Netflix Trading Down 1.3%

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 business’s 50-day simple moving average is $77.00 and its two-hundred day simple moving average is $85.50. The company has a market capitalization of $300.69 billion, a PE ratio of 22.73, a PEG ratio of 0.92 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share 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 company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period last year, the firm earned $0.72 earnings per share. The company’s revenue was up 13.4% on a year-over-year basis. On average, analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity

In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares of the company’s stock, valued at $6,177,568.80. This represents a 31.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.69, for a total value of $2,422,301.28. Following the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. This trade represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 492,289 shares of company stock worth $42,186,530 over the last quarter. Corporate insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in NFLX. DiNuzzo Private Wealth Inc. raised its stake in shares of Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. grew its stake in 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 worth $25,000 after purchasing an additional 268 shares in the last quarter. Imprint Wealth LLC bought a new stake in Netflix in the third quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new stake in Netflix in the fourth quarter valued at about $26,000. Finally, Atlas Capital Advisors Inc. acquired a new stake in Netflix during the fourth quarter valued at approximately $26,000. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

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.