Netflix, Inc. $NFLX Position Trimmed by Generate Investment Management Ltd

Generate Investment Management Ltd trimmed its holdings in Netflix, Inc. (NASDAQ:NFLX) by 90.0% in the third quarter, HoldingsChannel.com reports. The firm owned 14,521 shares of the Internet television network’s stock after selling 130,000 shares during the quarter. Generate Investment Management Ltd’s holdings in Netflix were worth $1,010,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of NFLX. BlackRock Inc. acquired a new stake in Netflix during the 2nd quarter worth $24,902,221,000. State Street Corp boosted its stake in Netflix by 4.9% in the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock valued at $12,861,252,000 after acquiring an additional 8,474,820 shares in the last quarter. Bank of America Corp DE boosted its stake in Netflix by 4.3% in the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock valued at $5,571,201,000 after acquiring an additional 2,376,349 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Netflix by 835.9% during the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock worth $4,075,062,000 after purchasing an additional 38,818,947 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Netflix during the second quarter worth about $1,906,482,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Stock Performance

Shares of NASDAQ:NFLX traded down $0.53 on Wednesday, reaching $69.93. The company’s stock had a trading volume of 17,540,820 shares, compared to its average volume of 42,150,199. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $124.86. The stock has a market capitalization of $291.18 billion, a P/E ratio of 22.03, a PEG ratio of 1.00 and a beta of 1.62. The stock’s 50-day moving average is $75.34 and its two-hundred day moving average is $81.03. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter last year, the company posted $0.72 earnings per share. The business’s revenue was up 13.4% on a year-over-year basis. As a group, sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Ratings Changes

A number of analysts have recently commented on NFLX shares. Guggenheim reiterated a “buy” rating and set a $80.00 target price (up from $75.00) on shares of Netflix in a research report on Thursday, October 1st. KeyCorp decreased their target price on Netflix from $92.00 to $85.00 and set an “overweight” rating for the company in a research report on Tuesday. Seaport Research Partners downgraded Netflix from a “buy” rating to a “neutral” rating in a research note on Monday, July 20th. Rothschild & Co Redburn cut their price target on Netflix from $120.00 to $93.00 and set a “buy” rating on the stock in a research report on Tuesday, July 21st. Finally, Wells Fargo & Company lowered Netflix from a “neutral” rating to an “underweight” rating and cut their price target for the stock from $80.00 to $57.00 in a research report on Friday, September 18th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Netflix has an average rating of “Moderate Buy” and a consensus price target of $94.53.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix secured exclusive rights to broadcast the 2030 FIFA World Cup in Spain and Andorra, potentially strengthening its sports offering and creating another opportunity to attract and retain subscribers. Netflix secures 2030 World Cup rights
• Positive Sentiment: Some investors remain constructive after the stock’s roughly 40% decline over the past year, arguing that Netflix’s profitability, international growth and opportunities beyond subscriber expansion could support a recovery. Netflix growth opportunities beyond subscribers
• Neutral Sentiment: Netflix reports third-quarter results on October 20. Investors are expected to focus on revenue growth, U.S. and international trends, free cash flow, content spending and management’s outlook. Netflix upcoming earnings and free cash flow
• Negative Sentiment: Netflix is eliminating approximately 1,000 jobs, or 6% of its global workforce, in its largest reduction since 2022. The cuts may reduce expenses, but their timing suggests management is responding to slowing growth, weaker engagement and intensifying competition for viewers. Netflix cuts about 6% of jobs
• Negative Sentiment: App data from Apptopia reportedly showed U.S. churn rising 16.6%, raising concerns that Netflix is having difficulty maintaining engagement in its home market as viewers face more competing entertainment options. Netflix U.S. app churn rises
• Negative Sentiment: Analyst pressure has increased ahead of earnings: Huber Research downgraded NFLX to Sell, while KeyBanc lowered its price target despite retaining an Overweight rating. Concerns include slowing viewership, rising content costs and margin pressure. Netflix analyst downgrade

Insider Activity at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the sale, the chief executive officer owned 120,931 shares in the company, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard N. Barton sold 720 shares of the company’s 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 sale, the director owned 2,460 shares of the company’s stock, valued at $185,164.20. This trade represents a 22.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 179,045 shares of company stock worth $13,132,194 in the last ninety days. Company insiders own 1.24% of the company’s stock.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.