Bank of America Reiterates Buy Rating for Netflix (NASDAQ:NFLX)

Netflix (NASDAQ:NFLX)‘s stock had its “buy” rating reaffirmed by equities researchers at Bank of America in a report released on Monday,Benzinga reports. They presently have a $125.00 price target on the Internet television network’s stock. Bank of America‘s price target would suggest a potential upside of 39.37% from the stock’s previous close.

Other research analysts have also recently issued reports about the company. Susquehanna upgraded Netflix to a “positive” rating and set a $112.00 price target for the company in a research report on Wednesday, January 21st. Royal Bank Of Canada reiterated a “hold” rating on shares of Netflix in a research report on Wednesday, January 21st. Oppenheimer set a $120.00 price target on Netflix and gave the company an “outperform” rating in a research report on Friday, April 17th. UBS Group set a $104.00 price target on Netflix in a research report on Tuesday, January 27th. Finally, Weiss Ratings upgraded Netflix from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 4th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $114.82.

Netflix Stock Performance

Shares of Netflix stock traded up $2.67 on Monday, reaching $89.69. 20,038,846 shares of the stock were exchanged, compared to its average volume of 46,000,227. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. Netflix has a twelve month low of $75.01 and a twelve month high of $134.12. The firm has a market capitalization of $377.68 billion, a price-to-earnings ratio of 28.94, a PEG ratio of 1.11 and a beta of 1.55. The business has a 50 day moving average price of $94.74 and a two-hundred day moving average price of $94.67.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. During the same quarter in the previous year, the company posted $6.61 earnings per share. The company’s revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts anticipate that Netflix will post 3.6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Reed Hastings sold 407,550 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director directly owned 3,940 shares in the company, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the business’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total value 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 SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 1,422,769 shares of company stock valued at $135,144,073. 1.24% of the stock is owned by insiders.

Institutional Trading of Netflix

Several large investors have recently made changes to their positions in the company. Empowered Funds LLC increased its position in shares of Netflix by 115.0% during the first quarter. Empowered Funds LLC now owns 858,348 shares of the Internet television network’s stock worth $82,530,000 after purchasing an additional 459,153 shares in the last quarter. Evelyn Partners Investment Management LLP increased its position in shares of Netflix by 9.7% during the first quarter. Evelyn Partners Investment Management LLP now owns 207,610 shares of the Internet television network’s stock worth $19,962,000 after purchasing an additional 18,279 shares in the last quarter. Evelyn Partners Investment Management Services Ltd increased its position in shares of Netflix by 147.3% during the first quarter. Evelyn Partners Investment Management Services Ltd now owns 29,074 shares of the Internet television network’s stock worth $2,795,000 after purchasing an additional 17,319 shares in the last quarter. Excelsior Advisor Network LLC increased its position in shares of Netflix by 7.6% during the first quarter. Excelsior Advisor Network LLC now owns 3,012 shares of the Internet television network’s stock worth $290,000 after purchasing an additional 212 shares in the last quarter. Finally, Southpoint Capital Advisors LP purchased a new stake in shares of Netflix during the first quarter worth approximately $192,300,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts remain upbeat on Netflix, with Citi and JPMorgan cited as bullish and Bank of America reportedly issuing a very optimistic forecast. One note even suggested the stock could nearly triple by the end of 2027 based on earnings momentum and analyst consensus. Netflix Price Prediction: Why a 270% Jump By The End of 2027 Is Possible
• Positive Sentiment: Commentary highlighted Netflix’s ad-supported business as a key growth driver, with the company now reaching a large audience and investors watching for higher ad prices and better monetization, especially around live sports. Netflix Has 250 Million Ad Viewers. Now It Has To Prove Their Value
• Positive Sentiment: Analysts at Citi maintained a Buy rating and pointed to growth in ad-supported business and user engagement as reasons for continued optimism about Netflix’s fundamentals. Citi Maintains Buy Rating on Netflix (NFLX) Stock
• Neutral Sentiment: Several articles framed the recent pullback as a valuation reset rather than a deterioration in the business, suggesting the stock may simply be repricing after a strong prior run. A Look At Netflix (NFLX) Valuation As Long Term Gains Contrast With Recent Share Price Weakness
• Neutral Sentiment: Netflix co-CEO Greg Peters discussed the company’s growth strategy and why it passed on the Warner Bros. Discovery deal, reinforcing that management is focused on organic expansion rather than a major acquisition. Netflix’s Greg Peters on Why It Walked Away from the Warner Bros. Discovery Deal
• Negative Sentiment: Some reports noted that Netflix’s recent weakness has been tied to concerns about guidance and the market questioning near-term fundamentals, even though several analysts argue the selloff has gone too far. NFLX Stock Collapsed. The Fundamentals Did Not

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.