Netflix (NASDAQ:NFLX) Shares Up 3.8% – Should You Buy?

Shares of Netflix, Inc. (NASDAQ:NFLX) were up 3.8% during mid-day trading on Monday . The stock traded as high as $81.02 and last traded at $80.32. 30,567,398 shares changed hands during trading, a decline of 29% from the average daily volume of 42,918,086 shares. The stock had previously closed at $77.40.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Evercore ISI raised its Netflix price target to $110 from $100 and reiterated an Outperform rating. The firm cited improving subscriber trends in the United States and Japan, as well as survey results and the opportunity to use live events to drive engagement and subscriptions. Netflix stock rises as Evercore raises price target to $110
• Positive Sentiment: Analyst commentary indicates that live sports and other live programming may support subscriber growth, strengthening the case for further revenue and earnings expansion. Netflix’s advertising-supported tier has also contributed to recent subscriber gains. Netflix Stock Jumps as Evercore Raises Its Price Target
• Positive Sentiment: Netflix joined Amazon and YouTube in forming the Streaming Access and Choice Alliance, which will advocate for consumer access to online content. The group could give major platforms a stronger voice in debates over competition, sports rights and digital distribution. Amazon, Netflix, YouTube Form Coalition
• Neutral Sentiment: Netflix will release its third-quarter 2026 results and business outlook on October 20, giving investors a forthcoming catalyst for evaluating subscriber momentum, advertising growth and live-content investments. Netflix to Announce Third Quarter 2026 Financial Results
• Negative Sentiment: Netflix reportedly faces a lawsuit alleging undisclosed tracking involving families and children. Although the allegations have not been established, the case presents potential legal, privacy and reputational risks.
• Negative Sentiment: Recent insider-trading data shows company insiders made numerous sales and no purchases over the past six months. This may temper investor enthusiasm, although insider sales can reflect compensation, tax or diversification needs.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of recent analyst reports. Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price target for the company in a research report on Sunday, July 19th. Daiwa Securities Group cut their price target on shares of Netflix from $102.00 to $76.00 and set an “outperform” rating on the stock in a report on Wednesday, July 22nd. Bank of America reduced their price objective on shares of Netflix from $125.00 to $105.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Itau BBA Securities decreased their price objective on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating for the company in a report on Wednesday, August 5th. Finally, KGI Securities downgraded shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price for the company. in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $96.53.

Netflix Trading Up 3.8%

The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The business’s fifty day simple moving average is $75.71 and its 200 day simple moving average is $84.44. The stock has a market cap of $334.45 billion, a price-to-earnings ratio of 25.28, a P/E/G ratio of 1.09 and a beta of 1.53.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the prior year, the company earned $0.72 earnings per share. The firm’s revenue was up 13.4% compared to the same quarter last year. On average, research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Activity

In other Netflix news, Director Richard N. Barton sold 720 shares of Netflix stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the transaction, the director directly owned 2,460 shares in the company, valued at $185,164.20. The trade was a 22.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at 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 company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 215,035 shares of company stock valued at $15,922,139 over the last quarter. Corporate insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. American Capital Advisory LLC lifted its position in Netflix by 0.8% during the 1st quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock valued at $1,345,000 after acquiring an additional 109 shares during the period. CWS Financial Advisors LLC grew its holdings in Netflix by 3.2% in the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock worth $347,000 after purchasing an additional 112 shares during the period. Warner Group LLC increased its stake in shares of Netflix by 2.2% during the first quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock valued at $503,000 after purchasing an additional 114 shares in the last quarter. Financial Avengers Inc. increased its stake in shares of Netflix by 9.8% during the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after purchasing an additional 115 shares in the last quarter. Finally, PAX Financial Group LLC lifted its holdings in shares of Netflix by 2.5% during the first quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock valued at $466,000 after purchasing an additional 116 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.