Bank of America Has Lowered Expectations for Netflix (NASDAQ:NFLX) Stock Price

Netflix (NASDAQ:NFLX) had its price target lowered by equities research analysts at Bank of America from $149.00 to $125.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a “buy” rating on the Internet television network’s stock. Bank of America‘s target price would suggest a potential upside of 26.24% from the company’s previous close.

Several other equities analysts have also recently weighed in on NFLX. William Blair reissued an “outperform” rating on shares of Netflix in a research report on Wednesday, January 21st. Needham & Company LLC dropped their price target on Netflix from $150.00 to $120.00 and set a “buy” rating on the stock in a research report on Wednesday, January 21st. Wolfe Research upped their price target on Netflix from $95.00 to $110.00 and gave the stock an “outperform” rating in a report on Friday, February 27th. Citic Securities reduced their price objective on Netflix from $109.00 to $95.00 and set a “hold” rating for the company in a research report on Monday, January 26th. Finally, Evercore began coverage on shares of Netflix in a research report on Friday, February 27th. They set an “outperform” rating and a $115.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $115.79.

Netflix Trading Down 0.2%

NASDAQ:NFLX opened at $99.02 on Friday. The company’s 50 day moving average is $86.30 and its 200-day moving average is $103.69. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. Netflix has a 12 month low of $75.01 and a 12 month high of $134.12. The firm has a market cap of $418.08 billion, a price-to-earnings ratio of 39.18, a P/E/G ratio of 1.41 and a beta of 1.68.

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. Netflix had a net margin of 24.30% and a return on equity of 43.26%. 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 previous year, the business earned $0.43 EPS. The business’s revenue was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Equities analysts anticipate that Netflix will post 24.58 EPS for the current year.

Insider Buying and Selling at Netflix

In other Netflix news, CEO Gregory K. Peters sold 105,781 shares of Netflix stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $82.94, for a total transaction of $8,773,476.14. Following the completion of the transaction, the chief executive officer directly owned 122,140 shares of the company’s stock, valued at approximately $10,130,291.60. This trade represents a 46.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Bradford L. Smith sold 31,790 shares of the business’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the completion of the sale, the director owned 79,690 shares in the company, valued at $7,081,253.40. This represents a 28.52% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,520,133 shares of company stock worth $137,259,786 over the last three months. 1.37% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Netflix

A number of large investors have recently bought and sold shares of NFLX. Union Savings Bank acquired a new stake in shares of Netflix in the fourth quarter valued at $291,000. Hsbc Holdings PLC lifted its position in Netflix by 910.6% during the 4th quarter. Hsbc Holdings PLC now owns 9,216,494 shares of the Internet television network’s stock worth $864,485,000 after buying an additional 8,304,472 shares in the last quarter. Cedarwood Wealth LLC acquired a new position in Netflix during the 4th quarter worth about $297,000. Mengis Capital Management Inc. grew its holdings in Netflix by 900.0% during the 4th quarter. Mengis Capital Management Inc. now owns 2,960 shares of the Internet television network’s stock worth $278,000 after acquiring an additional 2,664 shares during the last quarter. Finally, Worthington Financial Partners LLC acquired a new stake in Netflix in the 4th quarter valued at about $699,000. 80.93% of the stock is currently owned by institutional investors.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix walked away from its pursuit of Warner Bros. Discovery, securing a multi-billion-dollar breakup fee and removing an acquisition overhang that pressured the stock; management is refocusing on core streaming, ads and technology which investors view as capital-efficient. Netflix (NFLX) Is Up 16.6% After Walking Away From Warner Bros. Deal and Securing Breakup Fee
• Positive Sentiment: Netflix acquired InterPositive, Ben Affleck’s AI filmmaking startup, bringing the team in-house to build creator-focused production tools — a tech-forward move that supports cheaper, faster content production and reinforces Netflix’s AI strategy. Netflix buys Ben Affleck’s AI filmmaking company InterPositive
• Positive Sentiment: CFRA upgraded Netflix to a “buy” with a $115 price target, adding fresh analyst endorsement that supports further upside. Benzinga – CFRA Upgrade
• Positive Sentiment: Analysts and commentators argue walking away from the WBD deal may benefit shareholders by preserving capital and focusing management on margin-accretive growth rather than a massive, risky acquisition. Why Netflix Rejecting Warner Bros Discovery May Benefit Shareholders
• Neutral Sentiment: Bank of America lowered its price target (from $149 to $125) but kept a “buy” rating — a mixed read: still supportive but reflecting more conservative upside assumptions. Benzinga – BofA Lowers Price Target
• Neutral Sentiment: Reports show external investors (including filings tied to President Trump’s trust) bought Netflix debt during the M&A drama — notable market activity but not a direct equity catalyst. Trump Was Quietly Loading Up On Netflix Bonds — While Talking Down Its Warner Bid
• Negative Sentiment: Insider selling: the CFO and other insiders have recently sold shares (large director/Chairman sales were reported), which can create investor concern about timing and leadership selling into strength. Insider Selling: Netflix CFO Sells Stock Netflix Chairman Reed Hastings Cashed Out $39.8M

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.