Netflix (NASDAQ:NFLX) Reaches New 1-Year Low Following Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s share price hit a new 52-week low on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $118.00 to $85.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Netflix traded as low as $65.65 and last traded at $65.89, with a volume of 5877751 shares. The stock had previously closed at $74.35.

Several other brokerages have also recently weighed in on NFLX. Citic Securities increased their price target on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research note on Monday, April 27th. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. UBS Group reduced their target price on Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a report on Friday. Wedbush decreased their target price on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating for the company in a research report on Friday. Finally, Citizens Jmp reissued a “market perform” rating on shares of Netflix in a research report on Wednesday, April 15th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and sixteen have assigned a Hold rating to the company. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.97.

Insider Transactions at Netflix

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the sale, the chief executive officer owned 284,804 shares of the company’s stock, valued at $25,054,207.88. This trade represents a 8.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total value of $2,422,301.28. Following the completion of the sale, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 899,839 shares of company stock worth $80,141,661. Corporate insiders own 1.24% of the company’s stock.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain bullish, arguing Netflix still has strong long-term upside from margin expansion, advertising growth, and new engagement-driven content formats. Mark Mahaney Reiterates Buy on Netflix
• Positive Sentiment: Supportive commentary highlighted Netflix’s AI, ads, short-form video, and gaming strategy as potential growth catalysts for monetization and engagement. Ad Engagement & Content Opportunities Offer Bullish Edge for NFLX
• Neutral Sentiment: Several analysts cut price targets but mostly kept buy/overweight or hold ratings, signaling lower near-term expectations rather than a full thesis break. Laura Martin Maintains Buy on Netflix
• Negative Sentiment: Netflix’s weaker Q3 outlook and reduced engagement disclosure sparked concern that growth is slowing and management is becoming less transparent with investors. Netflix third-quarter earnings forecast falls shy of Wall Street expectations
• Negative Sentiment: Coverage across the market emphasized the post-earnings selloff, citing a revenue miss, soft guidance, and investor worries about future growth and competition. U.S. Chip Stocks Extend Slide; Netflix Tumbles on Growth Warning

Institutional Trading of Netflix

Several large investors have recently made changes to their positions in NFLX. First Financial Corp IN increased its stake in Netflix by 900.0% during the 4th 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 in the last quarter. DiNuzzo Private Wealth Inc. lifted its position in shares of 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. Turning Point Benefit Group Inc. increased its position in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 268 shares during the last quarter. Imprint Wealth LLC purchased a new stake in shares of Netflix during the third quarter valued at approximately $25,000. Finally, Cornerstone Financial Management LLC bought a new stake in shares of Netflix during the 4th quarter worth $26,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Trading Down 7.3%

The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a market cap of $290.33 billion, a P/E ratio of 21.70, a price-to-earnings-growth ratio of 0.95 and a beta of 1.52. The firm’s 50-day simple moving average is $80.15 and its 200 day simple moving average is $86.90.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a return on equity of 40.83% and a net margin of 28.22%.The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter in the prior year, the business earned $0.72 earnings per share. Netflix’s revenue for the quarter was up 13.4% on a year-over-year basis. As a group, analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current year.

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.