Netflix (NASDAQ:NFLX) Shares Down 2% Following Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares were down 2% during mid-day trading on Wednesday after Wedbush lowered their price target on the stock from $140.00 to $115.00. Wedbush currently has an outperform rating on the stock. Netflix traded as low as $87.95 and last traded at $88.55. Approximately 49,439,303 shares were traded during trading, an increase of 18% from the average daily volume of 41,906,180 shares. The stock had previously closed at $90.32.

Several other analysts also recently issued reports on NFLX. Guggenheim reiterated a “buy” rating and issued a $145.00 price target on shares of Netflix in a report on Wednesday, October 22nd. Seaport Res Ptn upgraded Netflix from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 6th. KGI Securities raised Netflix from a “neutral” rating to an “outperform” rating and set a $135.00 price target on the stock in a research report on Monday, November 3rd. Hsbc Global Res upgraded Netflix to a “strong-buy” rating in a report on Monday. Finally, Canaccord Genuity Group reiterated a “buy” rating and set a $152.50 price objective on shares of Netflix in a research note on Monday, December 8th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $127.91.

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 426,290 shares of Netflix stock in a transaction 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 completion of the sale, the director owned 3,940 shares in the company, valued at approximately $361,179.80. The trade was a 99.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Cletus R. Willems sold 2,380 shares of the company’s stock in a transaction on Thursday, November 6th. The shares were sold at an average price of $110.03, for a total transaction of $261,878.54. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,598,370 shares of company stock valued at $168,251,193. Corporate insiders own 1.37% of the company’s stock.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix struck a global deal to stream Sony Pictures films after theatrical windows — adds premium content licensing that supports subscriber value and long-term revenue. Read More.
• Positive Sentiment: Ad-tier momentum remains a bright spot: stronger ad growth and record ad-quarter metrics underpin longer-term monetization upside beyond subscriptions. Read More.
• Positive Sentiment: Some analysts reaffirmed bullish ratings (BMO buy reaffirmed, and an analyst-driven upgrade lifted shares in recent sessions), providing a counterbalance to headline risk. Read More.
• Neutral Sentiment: Q4 earnings on Jan. 20 is the immediate catalyst — analysts expect revenue/earnings roughly in-line but will watch subscriber trends, ad growth and guidance for 2026. Read More.
• Neutral Sentiment: A judge ruled Warner Bros. Discovery doesn’t need to disclose deal details soon to shareholders, keeping some WBD deal details under wraps — this limits near-term transparency but doesn’t block the transaction. Read More.
• Negative Sentiment: Unusual options activity: traders bought ~828,879 put contracts (≈163% above average), signaling elevated hedging or bearish bets ahead of earnings and M&A developments.
• Negative Sentiment: Analysts and investors remain concerned about the WBD takeover overhang — reports that Netflix may switch to an all-cash offer raise fears of a near-term cash drain and FY2026 EPS dilution. Read More.
• Negative Sentiment: Price-target cuts and cautious notes (e.g., Wedbush trimmed its target) highlight execution questions and the valuation hit from M&A/legal uncertainty. Read More.

Institutional Trading of Netflix

Several institutional investors and hedge funds have recently bought and sold shares of NFLX. Brighton Jones LLC raised its position in shares of Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after acquiring an additional 257 shares in the last quarter. Revolve Wealth Partners LLC increased its stake in Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after purchasing an additional 144 shares during the last quarter. MBA Advisors LLC acquired a new stake in shares of Netflix during the second quarter worth $253,000. Financiere des Professionnels Fonds d investissement inc. bought a new position in shares of Netflix in the 2nd quarter worth about $5,054,000. Finally, Sivia Capital Partners LLC lifted its position in shares of Netflix by 21.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after buying an additional 246 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The company’s fifty day moving average price is $99.41 and its 200 day moving average price is $113.11. The firm has a market capitalization of $373.10 billion, a price-to-earnings ratio of 36.78 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last issued its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.96 by ($1.09). Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business had revenue of $11.51 billion during the quarter, compared to the consensus estimate of $11.51 billion. During the same period in the prior year, the business earned $5.40 EPS. The business’s revenue was up 17.2% on a year-over-year basis. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Equities research analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current year.

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.