Netflix (NASDAQ:NFLX) Stock Rating Upgraded by Arete Research

Netflix (NASDAQ:NFLX) was upgraded by stock analysts at Arete Research from a “neutral” rating to a “buy” rating in a note issued to investors on Friday, Marketbeat Ratings reports.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings cut Netflix from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, January 22nd. DZ Bank reiterated a “buy” rating on shares of Netflix in a report on Wednesday, December 17th. Guggenheim cut their price objective on Netflix from $145.00 to $130.00 and set a “buy” rating for the company in a research report on Wednesday, January 21st. William Blair reaffirmed an “outperform” rating on shares of Netflix in a research report on Wednesday, January 21st. Finally, Loop Capital set a $104.00 target price on shares of Netflix in a research note on Tuesday, January 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and fifteen have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $115.91.

Netflix Price Performance

Shares of NFLX stock opened at $96.24 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19. The firm’s 50-day moving average is $85.83 and its two-hundred day moving average is $104.52. Netflix has a 12 month low of $75.01 and a 12 month high of $134.12. The company has a market capitalization of $406.34 billion, a PE ratio of 38.08, a price-to-earnings-growth ratio of 1.71 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.01. The business had revenue of $12.05 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Analysts predict that Netflix will post 24.58 earnings per share for the current year.

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $81.27, for a total value of $751,584.96. Following the completion of the transaction, the chief financial officer owned 73,787 shares of the company’s stock, valued at $5,996,669.49. This trade represents a 11.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Cletus R. Willems sold 3,136 shares of the business’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $82.67, for a total transaction of $259,253.12. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,399,163 shares of company stock valued at $129,899,103. Corporate insiders own 1.37% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp grew its holdings in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors raised its holdings in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after purchasing an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley raised its holdings in shares of Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock valued at $8,002,414,000 after purchasing an additional 76,840,318 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix formally declined to match Paramount Skydance’s higher offer for Warner Bros., ending the bidding war and securing a large breakup / termination payment that preserves cash and avoids taking on a complex, debt‑heavy asset. Netflix Receives Termination Fee After WBD Deal Collapse
• Positive Sentiment: Investors cheered the exit as it reduces near‑term strategic risk and potential integration headaches; commentators and analysts framed the decision as disciplined capital allocation, which helped lift shares. Netflix, Paramount shares jump as months-long fight for Warner ends
• Positive Sentiment: Regulatory and political risk eased — a planned Senate antitrust hearing tied to the deal was canceled after Netflix withdrew, removing a headline risk that would have attracted more scrutiny. After Netflix Drops Warner Bros. Bid, GOP Senator Cancels Planned Antitrust Hearing
• Positive Sentiment: Analysts and brokers responded with upgrades and higher price targets (Wolfe, Arete, Evercore coverage appears), supporting the rally and signaling refreshed bullish conviction. Wolfe Research adjusts price target on Netflix to $110 from $95; maintains outperform
• Positive Sentiment: Operational news also helped sentiment: Netflix expanded live sports/content reach by partnering with Apple to co‑broadcast the Canadian F1 Grand Prix, reinforcing content momentum outside M&A headlines. Apple and Netflix team up to air Formula 1 Canadian Grand Prix
• Neutral Sentiment: Market structure changed: Paramount Skydance looks set to win the Warner Bros. deal, which removes one strategic path for Netflix but also eliminates a costly contest; outcome may affect industry dynamics long‑term rather than Netflix’s near‑term earnings. Project Warrior: How Paramount beat Netflix in $110bn battle for Warner
• Negative Sentiment: Some opinion pieces warn of political/antitrust fallout and reputational/strategic implications from the episode (claims the fight became politicized and that Netflix’s positioning could invite scrutiny). These narratives could re‑emerge if Netflix pursues other large deals. Opinion | Why Netflix Lost Warner to Paramount

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.