Netflix Downgraded to Hold Rating by Seaport Global

Netflix was downgraded to a Hold rating by Seaport Global analyst David Joyce, with a price target of $1,140. The company's shares closed at $1,297.18. The analyst consensus rating is Strong Buy, with a $1,267.50 average price target, implying a -2.29% downside from current levels. Corporate insider sentiment is negative, with an increase in insider selling in May 2025.

Netflix (NASDAQ:NFLX) faced a downgrade from Seaport Global Securities, which lowered its rating to Neutral from Buy ahead of the streaming giant's July 17 earnings release. The move comes despite the company's robust performance and strategic initiatives aimed at increasing user engagement and boosting advertising revenue.

Seaport Global analyst David Joyce cited several factors for the downgrade, including the stock's elevated P/E ratio of 60 and the current trading levels relative to Fair Value metrics. The analyst noted that while Netflix's long-term adjustments to its valuation model, such as increased global price hikes and expanded advertising revenue estimates, are positive, the average of their approaches suggests less than 10% upside potential from current levels. This cautious stance prompted the rating change to Neutral.

Netflix's recent announcements, including partnerships with TF1 and potential talks with Spotify (NYSE:SPOT), have been well-received, with revenue growing 15% in the last twelve months. The company has also been making headlines with the success of its hit series "Squid Game" and the opening of its first two Netflix House locations in Philadelphia and Dallas.

Goldman Sachs (NYSE:GS) raised its price target for Netflix to $1,140, up from $1,000, while maintaining a Neutral rating. The bank highlighted the company's strong content slate as a key factor. JPMorgan (NYSE:JPM), on the other hand, reiterated its Neutral rating with a $1,220 price target, citing a balanced risk/reward scenario.

Corporate insider sentiment has been negative, with an increase in insider selling in May 2025. The analyst consensus rating is Strong Buy, with a $1,267.50 average price target, implying a -2.29% downside from current levels.

References:
[1] https://in.investing.com/news/analyst-ratings/netflix-stock-rating-downgraded-to-neutral-by-seaport-global-securities-93CH-4901397
[2] https://www.investing.com/news/analyst-ratings/netflix-stock-rating-downgraded-to-neutral-by-seaport-global-securities-93CH-4124036
[3] https://site.financialmodelingprep.com/market-news/fmp-goldman-sachs-raises-netflix-price-target-to-$1140-ahead-of-q2-earnings
[4] https://www.marketbeat.com/instant-alerts/filing-netflix-inc-nasdaqnflx-shares-sold-by-alpha-cubed-investments-llc-2025-07-07/