Wedbush Raises Earnings Forecast for Netflix

On October 15th, Wedbush analysts released a new research report increasing their earnings per share (EPS) estimates for Netflix, Inc. (NASDAQ:NFLX). The firm’s analyst, A. Reese, has adjusted the forecast for the first quarter of 2026 to expect earnings of $6.84 per share, a slight increase from the previous estimate of $6.83. Along with this positive outlook, Wedbush has assigned a rating of "Overweight" to Netflix shares and set a price target at $775. This comes as Netflix’s overall earnings forecast for the current year is projected at $19.08 per share, reflecting the company’s growth trajectory.

Netflix had recently announced its quarterly earnings results on July 18th. During this quarter, the company reported earnings of $4.88 per share, which surpassed the consensus estimate of $4.74 by $0.14. The company achieved a net margin of 19.54% and a return on equity of 32.93%. Moreover, Netflix recorded revenue of $9.56 billion for the quarter, exceeding the anticipated $9.53 billion. This represented a significant increase compared to the same quarter last year, when the firm earned $3.29 EPS, marking a 16.8% rise in revenue.

In addition to Wedbush's upgrade, several other financial institutions have also recently shared their views on Netflix's stock. Morgan Stanley raised its target price for Netflix from $820.00 to $830.00 while maintaining an “overweight” rating. Similarly, Goldman Sachs set a target price of $750.00 for the shares. Furthermore, Sanford C. Bernstein increased their target from $625.00 to $780.00, giving the stock a "market perform" rating. Loop Capital also raised its target from $750.00 to $800.00, designating it as a "buy". Citigroup adjusted its target from $660.00 to $675.00, rating it as “neutral”. Currently, two analysts rate the stock as a sell, nine hold it, while twenty-six have a buy rating. According to MarketBeat, the overall rating for Netflix is "Moderate Buy" with an average target price of $739.38.

Current Stock Performance and Investor Insights

As of Friday, Netflix shares (NASDAQ NFLX) opened at $763.89. Over the past year, the stock has seen a low of $392.26 and a high of $766.28. The company’s market capitalization is approximately $329.24 billion, with a price-to-earnings ratio of 53.01. Netflix also has a PEG ratio of 1.49 and a beta of 1.26, indicating moderate volatility. The firm’s financial metrics highlight a debt-to-equity ratio of 0.55, and both the quick and current ratios stand at 0.95. The 50-day moving average is noted at $696.38, while the 200-day average is $654.66.

Insider Trading Activity

In related news, prominent insider transactions have occurred at Netflix. Chairman Reed Hastings sold 25,599 shares on August 1st, with an average sale price of $631.43, totaling nearly $16.16 million. Following this transaction, Hastings’s direct ownership decreased to just 57 shares, valued at about $35,991.51. Additionally, insider David A. Hyman sold 20,656 shares on August 6th at an average price of $605.13, amounting to a total of approximately $12.50 million. After the transaction, Hyman retains 31,610 shares worth about $19.13 million. In the past three months, insiders have sold 225,167 shares valued at around $150.49 million, leaving insiders with 1.76% ownership of the company’s stock.

Institutional Investors and Their Recent Moves

Hedge funds have shown significant interest in Netflix's shares recently. For example, Massmutual Trust Co. FSB ADV boosted its holdings by 7.8% in the first quarter, now owning 1,191 shares valued at $723,000. Perpetual Ltd expanded its position by 216.8%, acquiring an additional 2,090 shares for a total of 3,054 shares. American National Bank also increased its holdings by over 100%, now owning 378 shares worth $230,000. Notably, 80.93% of Netflix's stock is owned by institutional investors.

About Netflix

Netflix, Inc. is a leader in entertainment services, offering a diverse range of TV series, documentaries, films, and games across different genres and languages. The company allows users to stream content on various internet-connected devices, such as TVs, digital video players, and mobile phones.

Netflix, Earnings, Forecast, Stocks, Analysts