Wedbush Has Lowered Expectations for Netflix (NASDAQ:NFLX) Stock Price

Netflix (NASDAQ:NFLX) had its target price lowered by Wedbush from $140.00 to $115.00 in a note issued to investors on Thursday, MarketBeat.com reports. The firm presently has an “outperform” rating on the Internet television network’s stock. Wedbush’s price objective would suggest a potential upside of 30.68% from the stock’s previous close.

Several other equities analysts have also recently issued reports on NFLX. Moffett Nathanson reaffirmed a “buy” rating on shares of Netflix in a research report on Wednesday, November 12th. Wolfe Research lowered their price objective on Netflix from $139.00 to $121.00 and set an “outperform” rating on the stock in a research report on Monday, December 15th. JPMorgan Chase & Co. dropped their target price on shares of Netflix from $127.50 to $124.00 and set a “neutral” rating for the company in a report on Tuesday, November 18th. Loop Capital cut their price target on Netflix from $135.00 to $132.50 in a research note on Wednesday, October 22nd. Finally, Needham & Company LLC restated a “buy” rating and issued a $150.00 price objective on shares of Netflix in a research report on Tuesday, December 9th. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $127.13.

Netflix Price Performance

NFLX stock opened at $88.00 on Thursday. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. Netflix has a 1 year low of $82.11 and a 1 year high of $134.12. The firm has a 50-day moving average of $98.96 and a 200 day moving average of $112.94. The company has a market cap of $372.88 billion, a P/E ratio of 36.76 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last posted its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, missing analysts’ consensus estimates of $6.96 by ($1.09). The firm had revenue of $11.51 billion for the quarter, compared to analysts’ expectations of $11.51 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The firm’s revenue was up 17.2% on a year-over-year basis. During the same quarter last year, the company posted $5.40 EPS. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. On average, sell-side analysts forecast that Netflix will post 24.58 EPS for the current year.

Insider Transactions at Netflix

In other news, Director Reed Hastings sold 426,290 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $91.67, for a total transaction of $39,078,004.30. Following the sale, the director directly owned 3,940 shares of the company’s stock, valued at $361,179.80. This represents a 99.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Bradford L. Smith sold 31,790 shares of the firm’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 transaction, the director directly owned 79,690 shares of the company’s stock, valued at approximately $7,081,253.40. This trade represents a 28.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 1,630,160 shares of company stock valued at $171,076,053. 1.37% of the stock is owned by insiders.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently bought and sold shares of the business. Park Edge Advisors LLC increased its holdings in shares of Netflix by 1,033.2% in the 4th quarter. Park Edge Advisors LLC now owns 20,897 shares of the Internet television network’s stock worth $1,959,000 after buying an additional 19,053 shares during the last quarter. Howard Capital Management Group LLC increased its stake in Netflix by 900.0% during the fourth quarter. Howard Capital Management Group LLC now owns 2,400 shares of the Internet television network’s stock worth $225,000 after acquiring an additional 2,160 shares during the last quarter. Birchcreek Wealth Management LLC raised its position in Netflix by 849.4% during the fourth quarter. Birchcreek Wealth Management LLC now owns 7,681 shares of the Internet television network’s stock valued at $720,000 after purchasing an additional 6,872 shares during the period. MRA Advisory Group lifted its stake in shares of Netflix by 932.2% in the 4th quarter. MRA Advisory Group now owns 9,465 shares of the Internet television network’s stock valued at $887,000 after purchasing an additional 8,548 shares during the last quarter. Finally, Aspire Capital Advisors LLC boosted its holdings in shares of Netflix by 880.6% in the 4th quarter. Aspire Capital Advisors LLC now owns 3,187 shares of the Internet television network’s stock worth $299,000 after purchasing an additional 2,862 shares during the period. Institutional investors own 80.93% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: New content supply deal — Netflix struck a global agreement to stream Sony Pictures films after their theatrical windows, strengthening its post‑theatrical content pipeline and recurring film inventory. Netflix inks global deal to stream Sony Pictures’ films after theatrical window
• Positive Sentiment: New product expansion — Netflix is rolling out podcasts (aimed at competing with platforms like YouTube), which diversifies engagement and ad inventory opportunities. Netflix Offers Podcasts To Compete With YouTube
• Positive Sentiment: Analyst upside exists — Several outlets note that some analysts still see meaningful upside into earnings (some models show large percent upside), signaling pockets of bullish conviction ahead of the report. Netflix (NFLX) Stock: Analysts Target 44% Upside Before Earnings Tuesday
• Neutral Sentiment: Earnings event approaching — Q4 results (Jan. 20 after close) are front and center; previews stress revenue/ads/subscriber momentum and margin cadence will be watched but coverage suggests the Warner bid may dominate headlines. Dear Netflix Stock Fans, Mark Your Calendars for January 20
• Neutral Sentiment: Mixed analyst actions — Rosenblatt reaffirmed a neutral rating with a $105 target (shows measured upside), while other shops vary; the range of targets reflects disagreement on M&A and growth tradeoffs. Analyst notes on Rosenblatt reaffirmation
• Negative Sentiment: M&A overhang — Coverage highlights the Warner Bros. bid as the dominant theme: legal skirmishes, competing Paramount/Skydance offers and debate over an all‑cash vs. stock structure are creating uncertainty about price, financing and execution. That overhang is likely muting a rally into earnings. Netflix results likely to take backseat to Warner Bros deal questions
• Negative Sentiment: Valuation & debt concerns — Commentary warns the proposed deal could materially raise debt and valuation risk, pressuring multiples until deal terms and financing are clear. Ongoing overhang hits Netflix valuation
• Negative Sentiment: Investor positioning & sentiment signals — Heavy put‑option volume and widespread social debate, plus reports of concentrated insider sales, indicate elevated hedging and skepticism that can amplify short‑term downside ahead of clarity on earnings and the WBD transaction. Opinions on price drop and acquisition talks

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.