Is Netflix (NFLX) Stock Cheap Right Now? Citi and JPMorgan Think So

TLDR

• Citi analyst Jason Bazinet maintained a Buy rating on NFLX with a price target of $115, citing growth in the ad-supported tier and expansion to new countries.
• JPMorgan reiterated an Overweight rating with a $118 price target, pointing to Netflix’s content strategy and advertising technology.
• NFLX opened at $87.02, well below the average analyst price target of $114.82, giving a consensus Moderate Buy rating from 52 analysts.
• Arrow Financial Corp increased its Netflix position by 831.6% in Q4, while insiders including CEO Gregory Peters and CFO Spencer Neumann were net sellers in May.
• Netflix beat Q1 2026 earnings estimates, posting $1.23 EPS against a $0.76 consensus, with revenue of $12.25 billion, up 16.2% year-over-year.

Netflix stock is trading well below where Wall Street thinks it should be. NFLX opened at $87.02 on Monday, against an average analyst price target of $114.82 — a gap that has some on the Street feeling constructive.

Netflix, Inc., NFLX

Citi analyst Jason Bazinet maintained his Buy rating on May 13, setting a price target of $115. He pointed to growth in Netflix’s ad-supported tier, healthy weekly usage among those customers, and plans to expand the ad service to more countries.

Bazinet also highlighted Netflix’s work on new advertising formats and AI tools for creators and advertisers. He said these moves could help grow ad inventory and improve how well campaigns perform.

JPMorgan also weighed in, reiterating an Overweight rating with a $118 price target. The bank cited Netflix’s broad reach, content strategy, and improvements in its advertising technology as reasons for its positive view.

Across Wall Street, the stock carries a Moderate Buy consensus. Two analysts rate it Strong Buy, 34 have it at Buy, and 16 say Hold. The average price target sits at $114.82.

Q1 Earnings Beat Expectations

Netflix reported Q1 2026 results on April 16. The company posted earnings of $1.23 per share, clearing the consensus estimate of $0.76 by $0.47. Revenue came in at $12.25 billion, slightly ahead of the $12.17 billion estimate.

Revenue was up 16.2% compared to the same quarter last year. Return on equity stood at 40.92%, with a net margin of 28.52%. Netflix has guided Q2 2026 EPS at $0.78.

Institutional Buying, Insider Selling

Arrow Financial Corp was one of the more eye-catching buyers last quarter. The firm grew its Netflix position by 831.6% in Q4, adding 27,092 shares to bring its total to 30,350, valued at around $2.85 million.

Several other smaller institutional holders also added to their positions during Q3. Institutional investors now own 80.93% of Netflix stock in total.

On the insider side, the picture looks different. CEO Gregory Peters sold 27,312 shares on May 7 at an average price of $88.69, for a total of around $2.42 million. That sale reduced his ownership stake by 18.42%.

CFO Spencer Neumann also sold 9,253 shares the same day at $88.95, totaling roughly $823,000. His stake fell by 11.14%.

Over the past quarter, insiders have sold a total of 1.42 million shares valued at approximately $135.1 million. Corporate insiders now hold 1.24% of the stock.

NFLX has a 12-month trading range of $75.01 to $134.12. Its 50-day moving average stands at $94.74 and its 200-day moving average at $94.67.

The stock carries a P/E ratio of 28.11, a PEG ratio of 1.11, and a beta of 1.55. The debt-to-equity ratio is 0.43.

Analysts expect Netflix to post full-year EPS of $3.60 for the current year.

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