Netflix’s (NFLX) Outperform Rating Reaffirmed at Wedbush

Wedbush reaffirmed their outperform rating on shares of Netflix (NASDAQ:NFLX) in a report released on Wednesday morning,Benzinga reports. They currently have a $115.00 target price on the Internet television network’s stock.

Several other equities research analysts also recently weighed in on the company. KeyCorp set a $110.00 price target on Netflix and gave the stock an “overweight” rating in a report on Friday, January 16th. TD Cowen reaffirmed a “buy” rating on shares of Netflix in a research report on Tuesday, January 13th. DZ Bank reiterated a “buy” rating on shares of Netflix in a research note on Wednesday, December 17th. William Blair restated an “outperform” rating on shares of Netflix in a research note on Wednesday. Finally, Evercore ISI reaffirmed an “outperform” rating and issued a $138.00 price target on shares of Netflix in a report on Friday, December 5th. One research analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $120.72.

Netflix Price Performance

NASDAQ NFLX opened at $85.36 on Wednesday. The firm’s fifty day simple moving average is $97.34 and its two-hundred day simple moving average is $111.91. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. Netflix has a 12-month low of $81.93 and a 12-month high of $134.12. The firm has a market capitalization of $361.70 billion, a P/E ratio of 33.78 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01. Netflix had a return on equity of 43.96% and a net margin of 24.30%.The firm had revenue of $12.05 billion during the quarter, compared to analyst estimates of $11.97 billion. During the same quarter in the prior year, the business posted $0.43 EPS. The business’s revenue for the quarter was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Analysts forecast that Netflix will post 24.58 EPS for the current fiscal year.

Insider Activity at Netflix

In other Netflix news, Director Reed Hastings sold 426,290 shares of Netflix stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $91.67, for a total transaction of $39,078,004.30. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at approximately $361,179.80. This trade represents a 99.08% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Bradford L. Smith sold 31,790 shares of the business’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $88.86, for a total value of $2,824,859.40. Following the completion of the transaction, the director directly owned 79,690 shares of the company’s stock, valued at approximately $7,081,253.40. This trade represents a 28.52% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,653,599 shares of company stock worth $173,141,263 in the last three months. Company insiders own 1.37% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently bought and sold shares of the stock. Nordea Investment Management AB boosted its holdings in Netflix by 886.6% during the fourth quarter. Nordea Investment Management AB now owns 9,667,997 shares of the Internet television network’s stock worth $902,798,000 after buying an additional 8,688,113 shares in the last quarter. Norges Bank purchased a new position in Netflix in the second quarter valued at $7,929,645,000. Assenagon Asset Management S.A. raised its position in shares of Netflix by 983.1% in the fourth quarter. Assenagon Asset Management S.A. now owns 6,234,314 shares of the Internet television network’s stock worth $584,529,000 after acquiring an additional 5,658,740 shares during the period. Laurel Wealth Advisors LLC boosted its stake in shares of Netflix by 128,553.9% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 4,881,129 shares of the Internet television network’s stock worth $6,536,466,000 after acquiring an additional 4,877,335 shares in the last quarter. Finally, Aberdeen Group plc boosted its stake in shares of Netflix by 878.7% during the 4th quarter. Aberdeen Group plc now owns 3,243,837 shares of the Internet television network’s stock worth $304,142,000 after acquiring an additional 2,912,392 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 results beat consensus on EPS and showed healthy revenue and subscriber gains (Netflix passed ~325M paid members), supporting the underlying streaming business. Reuters: Netflix beats revenue estimates
• Positive Sentiment: Advertising revenue is accelerating (management cited ~$1.5B in ad revenue for 2025), giving Netflix a clear monetization lever beyond subscriptions. Deadline: Ad revenue update
• Positive Sentiment: Heavy option activity has drawn attention — some coverage frames the volume as bullish interest (increased calls alongside puts can signal trader conviction and potential upside positioning). MSN: Options activity
• Neutral Sentiment: Netflix amended its Warner Bros. Discovery (WBD) bid to an all‑cash structure — this reduces stock-contingency risk and could speed approval, but concentrates the cash burden on Netflix. Regulators will scrutinize the bids. CNBC: All-cash WBD bid
• Neutral Sentiment: EU antitrust authorities plan to review rival bids for Warner Bros at the same time, creating an unusual regulatory timeline that could affect deal timing and uncertainty. Reuters: EU review
• Negative Sentiment: Conservative near‑term guidance (Q1 EPS guided below some Street expectations) disappointed investors and was the immediate catalyst for the sell‑off despite the quarterly beat. ProactiveInvestors: Guidance misses
• Negative Sentiment: Management paused the share‑buyback program to preserve cash for the WBD transaction — removes a shareholder-friendly capital return and raises near‑term cash allocation concerns. TalkMarkets: Buyback pause
• Negative Sentiment: Company plans to increase content/program spending (~+10% in 2026), which could compress margins in the short term and contributed to a weaker margin outlook cited by analysts. Financial Post: Content spend
• Negative Sentiment: Analysts trimmed price targets and highlighted deal, guidance and margin risk; coupled with recent insider selling, these factors amplified downside momentum. Benzinga: Analyst reactions

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.