Netflix (NASDAQ:NFLX) Raised to Strong-Buy at Freedom Capital

Netflix (NASDAQ:NFLX) was upgraded by stock analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a report released on Tuesday,Zacks.com reports.

A number of other equities analysts have also weighed in on the company. Hsbc Global Res raised Netflix to a “strong-buy” rating in a research note on Monday, January 12th. Royal Bank Of Canada reiterated a “hold” rating on shares of Netflix in a report on Wednesday, January 21st. Cfra Research lowered shares of Netflix from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. TD Cowen cut their price objective on shares of Netflix from $115.00 to $112.00 and set a “buy” rating for the company in a research report on Wednesday, January 21st. Finally, Seaport Research Partners upgraded shares of Netflix from a “hold” rating to a “strong-buy” rating in a report on Monday, October 6th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and seventeen have issued a Hold rating to the company’s stock. According to MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $116.17.

Netflix Stock Performance

NFLX opened at $84.64 on Tuesday. Netflix has a twelve month low of $81.93 and a twelve month high of $134.12. The firm has a market capitalization of $357.36 billion, a PE ratio of 33.49, a PEG ratio of 1.52 and a beta of 1.71. The company has a current ratio of 1.19, a quick ratio of 1.33 and a debt-to-equity ratio of 0.51. The firm’s 50-day moving average price is $94.63 and its 200 day moving average price is $110.43.

Netflix (NASDAQ:NFLX) last released its earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.01. The business had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business’s revenue was up 17.6% on a year-over-year basis. During the same period last year, the company posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, sell-side analysts expect that Netflix will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Reed Hastings sold 426,290 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $91.67, for a total value of $39,078,004.30. Following the transaction, the director directly owned 3,940 shares in the company, valued at approximately $361,179.80. This represents a 99.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider David A. Hyman sold 23,439 shares of Netflix stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $88.11, for a total transaction of $2,065,210.29. Following the completion of the sale, the insider owned 316,100 shares of the company’s stock, valued at $27,851,571. This trade represents a 6.90% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,653,599 shares of company stock worth $173,141,263. Insiders own 1.37% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently modified their holdings of the company. First Financial Corp IN boosted its stake 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 valued at $25,000 after purchasing an additional 243 shares during the period. DiNuzzo Private Wealth Inc. lifted 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 worth $25,000 after buying an additional 239 shares in the last quarter. Imprint Wealth LLC purchased a new position in Netflix in the 3rd quarter valued at approximately $25,000. Retirement Wealth Solutions LLC acquired a new position in shares of Netflix in the third quarter worth $28,000. Finally, MB Levis & Associates LLC grew its stake in shares of Netflix by 177.8% in the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock worth $28,000 after acquiring an additional 192 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Big-name buyers and bullish media commentary signal investor confidence — Ark Invest has been adding to Netflix, a vote of confidence in the subscription/ad growth story. Ark Invest Is Betting on Netflix Stock Amid Warner Bros Deal Drama
• Positive Sentiment: Analysts and commentators are urging buys after Q4: Needham kept a Buy rating (cut PT but stresses buy-the-dip), and Jim Cramer publicly recommended buying shares at current levels. Needham Advises Buying Netflix Jim Cramer Says “You Should Be a Buyer of Netflix Here”
• Positive Sentiment: Broker upgrades and optimistic research: Freedom Capital moved Netflix to a strong-buy and several firms reiterated Buy after earnings, supporting a recovery thesis. Freedom Capital Markets upgrades Netflix (NFLX)
• Neutral Sentiment: Quality of the beat but valuation caution — Zacks and others point to solid Q4 results, stronger margins and ad growth, but advise patience given recent weakness and stretched expectations. 3 Reasons to Hold Netflix Stock Following Solid Q4 Earnings
• Neutral Sentiment: Mixed broker actions — some upgrades (Phillip Securities) offset by lower price targets (Citic trimmed PT to $95), leaving analyst views split on near-term upside. Netflix Stock Rating Upgraded by Phillip Securities Citic Lowers Netflix Price Target to $95
• Negative Sentiment: Regulatory and political scrutiny of the Warner Bros. deal is intensifying — the Senate antitrust subcommittee and U.K. politicians are flagging concerns, increasing the probability of delays, remedies, or litigation that would be a material overhang. Senate subcommittee to hold hearing on proposed Netflix-Warner Bros deal
• Negative Sentiment: Deal financing and balance-sheet risks highlighted — analysis warns Netflix may strain its balance sheet or incur substantial regulatory/legal costs (Needham flagged ~$275M of regulatory costs), which raises leverage and execution risk until the transaction is resolved. Netflix Risks Balance Sheet Health in Pursuit of Warner Bros
• Negative Sentiment: Some institutional sellers and cautious investors are reducing exposure — Polen Capital exited Netflix citing regulatory and leverage concerns, a sign that some funds are trimming risk rather than buying the dip. Polen Focus Growth Strategy Exited Netflix Amid Concerns

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.