Netflix (NASDAQ:NFLX) Reaches New 12-Month 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 equities research analysts have also recently weighed in on the stock. Citigroup restated a “buy” rating and issued a $100.00 price objective (down from $115.00) on shares of Netflix in a research report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft upped their target price on shares of Netflix from $98.00 to $100.00 and gave the stock a “hold” rating in a research report on Tuesday, April 14th. Sanford C. Bernstein set a $95.00 price target on shares of Netflix and gave the company an “outperform” rating in a report on Friday. DZ Bank reissued a “buy” rating on shares of Netflix in a report on Friday, April 17th. Finally, HSBC boosted their price objective on shares of Netflix from $106.00 to $114.00 and gave the stock a “buy” rating in a research report on Friday, April 10th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and sixteen have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $103.97.

Insider Activity

In other Netflix news, insider David A. Hyman sold 5,722 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total transaction of $503,993.76. Following the transaction, the insider directly owned 316,100 shares in the company, valued at approximately $27,842,088. This represents a 1.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 899,839 shares of company stock worth $80,141,661. Corporate insiders own 1.24% of the company’s stock.

Trending Headlines about Netflix

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 Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Checchi Capital Advisers LLC boosted its stake in shares of Netflix by 875.7% in the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock worth $2,920,000 after acquiring an additional 27,951 shares during the period. Contravisory Investment Management Inc. grew its position in shares of Netflix by 837.2% during the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock worth $10,443,000 after purchasing an additional 99,496 shares in the last quarter. BNC Wealth Management LLC raised its stake in Netflix by 991.3% during the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock valued at $3,866,000 after purchasing an additional 37,451 shares during the period. Crew Capital Management Ltd raised its stake in Netflix by 1,021.9% during the 4th quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock valued at $847,000 after purchasing an additional 8,226 shares during the period. Finally, Family Capital Trust Co lifted its holdings in Netflix by 20,869.5% in the 4th quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network’s stock worth $2,576,000 after purchasing an additional 27,339 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Trading Down 7.3%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The company has a market capitalization of $290.33 billion, a PE ratio of 21.70, a PEG ratio of 0.88 and a beta of 1.52. The stock has a fifty day moving average of $80.15 and a 200 day moving average of $86.90.

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