Netflix (NASDAQ:NFLX) Stock Price Down 2% on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares dropped 2% on Wednesday after TD Cowen lowered their price target on the stock from $142.00 to $115.00. TD Cowen currently has a buy rating on the stock. Netflix traded as low as $87.95 and last traded at $88.55. Approximately 49,439,303 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 41,906,180 shares. The stock had previously closed at $90.32.

NFLX has been the subject of a number of other research reports. Citic Securities lowered their price target on shares of Netflix from $128.00 to $125.00 and set a “hold” rating for the company in a report on Wednesday, October 29th. Benchmark reiterated a “hold” rating on shares of Netflix in a report on Tuesday. Pivotal Research downgraded Netflix from a “buy” rating to a “hold” rating and cut their target price for the company from $160.00 to $105.00 in a research report on Monday, December 8th. Wolfe Research lowered their price target on Netflix from $139.00 to $121.00 and set an “outperform” rating for the company in a research report on Monday, December 15th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Netflix from $127.50 to $124.00 and set a “neutral” rating on the stock in a research report on Tuesday, November 18th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $128.59.

Insider Buying and Selling

In other Netflix news, insider David A. Hyman sold 314,620 shares of the company’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total value of $34,603,166.08. Following the transaction, the insider directly owned 316,100 shares in the company, valued at $34,765,942.40. This represents a 49.88% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Cletus R. Willems sold 2,380 shares of Netflix stock in a transaction that occurred on Thursday, November 6th. The shares were sold at an average price of $110.03, for a total transaction of $261,878.54. The disclosure for this sale is available in the SEC filing. Insiders sold 1,598,370 shares of company stock worth $168,251,193 over the last 90 days. Corporate insiders own 1.37% of the company’s stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Ad-tier momentum: Netflix’s ad-supported tier and ad revenues are showing acceleration (record ad quarter, plans to double ad revenue in 2025), supporting secular growth beyond subscriptions. Netflix Ad-Tier Growth Accelerates
• Positive Sentiment: Analyst backing: Some firms (e.g., BMO reiterated Buy; HSBC initiated coverage with a Strong-Buy) are highlighting fundamentals and ad-driven upside, giving holders a bullish counterweight to M&A worries. Buy Rating Reaffirmed on Netflix
• Positive Sentiment: Strategic upside if deal closes: Moving to an all-cash bid could increase the probability Netflix wins Warner Bros., which investors view as transformative long-term — removing stock-swap risk for WBD shareholders. Netflix’s Bid to Acquire Warner Bros. Discovery Just Got a Boost
• Neutral Sentiment: Earnings focus: Q4 results and guidance remain primary near-term catalysts; previews show expectations for solid top-line/ad momentum but the WBD bid is distracting attention from operating fundamentals. Netflix Q4 2025 Earnings Preview
• Neutral Sentiment: Volatility trades: Increased option activity and ideas like calendar spreads reflect elevated short-term volatility; some traders are using options to play or hedge the earnings/M&A news. Netflix Calendar Spread: A Smart Play on Volatility
• Negative Sentiment: Financial drag risk: Analysts warn an all-cash takeover would materially draw on cash and likely depress FY2026 EPS, raising concern about leverage and near-term profitability. All-Cash Deal Will Be a Drag on FY2026 EPS
• Negative Sentiment: Legal & political overhang: Paramount’s litigation and rising political and regulatory scrutiny (public pushback) increase the risk of delays, additional costs or a blocked transaction. Paramount Sues Warner Bros. Over Netflix Deal
• Negative Sentiment: Market reaction & volatility: Shares have shown sharp swings since the takeover news — intraday dips on all-cash rumors and higher-than-normal volume reflect investor uncertainty and short-term selling. NFLX Stock Dips Amid All-Cash Bid Rumors

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in shares of Netflix by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock valued at $46,183,983,000 after buying an additional 142,238 shares during the last quarter. State Street Corp grew its holdings in Netflix by 2.1% during the second quarter. State Street Corp now owns 17,444,013 shares of the Internet television network’s stock worth $23,359,801,000 after acquiring an additional 360,604 shares during the period. Geode Capital Management LLC raised its position in Netflix by 2.4% during the second quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network’s stock valued at $13,234,278,000 after acquiring an additional 229,182 shares in the last quarter. Nordea Investment Management AB lifted its holdings in Netflix by 886.6% in the fourth quarter. Nordea Investment Management AB now owns 9,667,997 shares of the Internet television network’s stock valued at $902,798,000 after acquiring an additional 8,688,113 shares during the period. Finally, Assenagon Asset Management S.A. boosted its position in Netflix by 983.1% in the 4th quarter. Assenagon Asset Management S.A. now owns 6,234,314 shares of the Internet television network’s stock worth $584,529,000 after purchasing an additional 5,658,740 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Stock Down 2.0%

The firm has a market cap of $375.21 billion, a price-to-earnings ratio of 36.99 and a beta of 1.71. The business’s 50 day moving average price is $99.84 and its 200 day moving average price is $113.42. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33.

Netflix (NASDAQ:NFLX) last posted its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.96 by ($1.09). The firm had revenue of $11.51 billion during the quarter, compared to analyst estimates of $11.51 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. The business’s revenue for the quarter was up 17.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $5.40 earnings per share. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. On average, equities analysts forecast that Netflix, Inc. will post 24.58 EPS for the current 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.