18,836 Netflix, Inc. $NFLX Shares Acquired by Compass Wealth Management LLC

Key Points

• Compass Wealth Management increased its Netflix stake by 26.5%, acquiring 18,836 additional shares for a total of 89,926 shares valued at approximately $6.26 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix beat third-quarter earnings expectations with $0.87 in EPS and $12.87 billion in revenue, but its fourth-quarter and advertising-revenue guidance came in below expectations, prompting several analysts to lower price targets.
• Analysts maintain a generally positive outlook, with Netflix carrying a “Moderate Buy” consensus rating and an average price target of $89.59, while insiders sold approximately $13.1 million of stock over the past 90 days under pre-arranged trading plans.

Compass Wealth Management LLC grew its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 26.5% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 89,926 shares of the Internet television network's stock after acquiring an additional 18,836 shares during the quarter. Netflix comprises approximately 1.2% of Compass Wealth Management LLC's investment portfolio, making the stock its 25th biggest position. Compass Wealth Management LLC's holdings in Netflix were worth $6,257,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the stock. Royal Fund Management LLC lifted its stake in shares of Netflix by 1.5% in the 3rd quarter. Royal Fund Management LLC now owns 34,593 shares of the Internet television network's stock valued at $2,407,000 after purchasing an additional 528 shares during the last quarter. WP Advisors LLC lifted its position in Netflix by 7.3% in the third quarter. WP Advisors LLC now owns 141,341 shares of the Internet television network's stock valued at $9,835,000 after buying an additional 9,611 shares during the last quarter. Strategic Planning Group LLC boosted its stake in Netflix by 4.1% during the third quarter. Strategic Planning Group LLC now owns 152,979 shares of the Internet television network's stock worth $10,644,000 after buying an additional 6,082 shares during the period. Indiana Trust & Investment Management Co boosted its stake in Netflix by 120.2% during the third quarter. Indiana Trust & Investment Management Co now owns 1,145 shares of the Internet television network's stock worth $80,000 after buying an additional 625 shares during the period. Finally, Benin Management CORP boosted its stake in Netflix by 12.9% during the third quarter. Benin Management CORP now owns 5,690 shares of the Internet television network's stock worth $396,000 after buying an additional 650 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on NFLX shares. Itau BBA Securities dropped their price target on shares of Netflix from $151.40 to $96.00 and set an "outperform" rating for the company in a research report on Wednesday, August 5th. New Street Research upped their price objective on shares of Netflix from $96.00 to $102.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $93.00 price objective on shares of Netflix in a research report on Wednesday. KGI Securities downgraded shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 target price for the company. in a report on Friday, July 17th. Finally, Daiwa Securities Group cut their target price on Netflix from $102.00 to $76.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 22nd. Three research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Netflix has a consensus rating of "Moderate Buy" and a consensus price target of $89.59.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Investors are treating the sell-off as a potential buying opportunity. Netflix beat third-quarter EPS expectations, generated $12.87 billion in revenue, and increased operating income 34.6% year over year. Several analysts—including UBS, JPMorgan, Bank of America, and TD Cowen—retained positive ratings despite lowering price targets. Stock Market Today, Oct. 22: Netflix Rises as Investors Capitalize on Post-Earnings Sell-Off
• Positive Sentiment: Netflix’s valuation has become more attractive after the decline, with investors emphasizing rising profits, more than 300 million subscribers, pricing power, and potential long-term growth from advertising, live events, and international content. The company’s buybacks are substantial, although management appears to follow a systematic rather than opportunistic repurchase strategy. The Truth About Netflix’s Massive Stock Buybacks
• Neutral Sentiment: Management continues to target double-digit revenue growth and expects advertising revenue to grow more than 80% in 2026. Netflix is investing in original programming, theatrical releases, live sports, and events such as NFL games, but executives acknowledge that viewer-hour growth and content execution need to improve.
• Negative Sentiment: The principal pressure is Netflix’s fourth-quarter outlook: EPS guidance of $0.67 trails the $0.73 consensus, while projected revenue of $13.4 billion is below the $13.5 billion estimate. Full-year revenue guidance was also slightly reduced. ETFs in Focus as Netflix Shares Tumble Amid Q3 Earnings Beat, Guidance Cut
• Negative Sentiment: Netflix cut its 2026 advertising-revenue forecast from approximately $3 billion to $2.7 billion, reinforcing concerns about slower growth, delayed ad execution, weaker engagement, and competition from YouTube, TikTok, and lower-cost streaming options. Multiple analysts consequently lowered price targets, while Needham downgraded the stock to Hold. Why Netflix Stock Dropped Today

Insider Activity

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the transaction, the chief executive officer owned 178,954 shares in the company, valued at $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of the business's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares of the company's stock, valued at approximately $185,164.20. This trade represents a 22.64% 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 179,045 shares of company stock worth $13,132,194 over the last 90 days. Company insiders own 1.24% of the company's stock.

Netflix Stock Up 3.1%

Shares of NASDAQ:NFLX opened at $67.05 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.14. The firm has a market capitalization of $279.19 billion, a PE ratio of 19.38, a price-to-earnings-growth ratio of 0.92 and a beta of 1.62. The firm's 50-day moving average is $74.52 and its two-hundred day moving average is $79.74. Netflix, Inc. has a 1 year low of $64.10 and a 1 year high of $116.73.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.05. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The business had revenue of $12.87 billion for the quarter, compared to analysts' expectations of $12.87 billion. During the same quarter in the prior year, the company earned $0.59 earnings per share. The business's quarterly revenue was up 11.9% on a year-over-year basis. Analysts predict that Netflix, Inc. will post 3.58 EPS for the current year.

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.

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