Netflix, Inc. $NFLX Stock: Commonwealth Equity Services LLC Cuts Holdings

Commonwealth Equity Services LLC lessened its holdings in Netflix, Inc. (NASDAQ:NFLX) by 10.7% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 1,192,361 shares of the Internet television network’s stock after selling 143,113 shares during the quarter. Commonwealth Equity Services LLC’s holdings in Netflix were worth $82,964,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of the business. Nykredit A S acquired a new stake in shares of Netflix during the second quarter worth $105,697,000. Rockland Trust Co. increased its holdings in Netflix by 27.5% in the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network’s stock valued at $15,253,000 after purchasing an additional 47,339 shares during the last quarter. Boomfish Wealth Group LLC increased its holdings in Netflix by 91.5% in the third quarter. Boomfish Wealth Group LLC now owns 34,547 shares of the Internet television network’s stock valued at $2,404,000 after purchasing an additional 16,510 shares during the last quarter. Welch & Forbes LLC lifted its stake in Netflix by 3,464.5% in the first quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network’s stock valued at $11,389,000 after buying an additional 115,125 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Netflix in the second quarter valued at about $37,743,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Stock Down 3.3%

NASDAQ NFLX traded down $2.15 during trading hours on Friday, reaching $63.41. 35,443,303 shares of the company’s stock were exchanged, compared to its average volume of 44,997,620. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07. The company has a market capitalization of $260.38 billion, a price-to-earnings ratio of 18.33, a price-to-earnings-growth ratio of 0.91 and a beta of 1.62. The company’s 50-day moving average is $71.03 and its two-hundred day moving average is $80.97. Netflix, Inc. has a one year low of $61.39 and a one year high of $116.73.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. The firm had revenue of $12.87 billion for the quarter, compared to analyst estimates of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The business’s revenue was up 11.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.59 earnings per share. On average, analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on NFLX. China Renaissance reduced their target price on Netflix from $100.00 to $80.00 and set a “hold” rating on the stock in a report on Friday, July 17th. DZ Bank reaffirmed a “buy” rating on shares of Netflix in a research note on Monday, July 20th. CICC Research cut their price target on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 21st. Oppenheimer reissued an “outperform” rating and set a $80.00 price objective (down from $85.00) on shares of Netflix in a research note on Wednesday, October 21st. Finally, KGI Securities cut shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective for the company. in a report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $89.14.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered Other Worlds: A Stranger Things Adventure, a live-action prequel series. Extending a popular franchise could support viewer engagement, though the financial impact and timing are not yet clear. Article: Stranger Things prequel series
• Positive Sentiment: A valuation analysis argues NFLX could be undervalued, estimating about 23% upside to fair value. This offers a counterpoint to recent weakness, but is an analyst view rather than a company announcement. Article: Netflix stock fair-value analysis
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales, but the transactions were made to cover tax withholding on vested equity awards. That stated purpose makes them a less clear signal about management’s view of the stock. Article: Netflix insider share sales
• Negative Sentiment: Coverage noted NFLX slipping even with the new Stranger Things plans, suggesting the content announcement has not eased near-term selling pressure. The shares are also near their 52-week low and far below their 52-week high, reflecting a weak recent trend. Article: Netflix stock slips despite new Stranger Things plans

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Neumann sold 9,253 shares of the stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $66.15, for a total transaction of $612,085.95. Following the completion of the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $4,881,010.05. This represents a 11.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 17,980 shares of the stock in a transaction dated Monday, October 26th. The stock was sold at an average price of $64.03, for a total value of $1,151,259.40. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at approximately $5,102,550.70. This trade represents a 18.41% 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. Insiders sold a total of 70,960 shares of company stock valued at $4,752,050 over the last quarter. 1.24% of the stock is currently owned by corporate insiders.

About Netflix

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.