34,879 Netflix, Inc. $NFLX Shares Sold by Avity Investment Management Inc.

Key Points

• Avity Investment Management cut its Netflix stake by 67.7%, selling 34,879 shares and retaining 16,665 shares valued at approximately $1.16 million. Institutional investors collectively own 80.93% of Netflix.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $94.70, despite recent target reductions from Morgan Stanley and Jefferies.
• Netflix shares recently traded at $70.30, below their 50-day and 200-day moving averages. The company’s latest quarterly results showed adjusted EPS of $0.80, revenue of $12.56 billion, and 13.4% year-over-year revenue growth.

Avity Investment Management Inc. lessened its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 67.7% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 16,665 shares of the Internet television network's stock after selling 34,879 shares during the period. Avity Investment Management Inc.'s holdings in Netflix were worth $1,160,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the business. Nykredit A S bought a new position in shares of Netflix in the second quarter worth $105,697,000. Rockland Trust Co. lifted its position in Netflix by 27.5% during the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock worth $15,253,000 after purchasing an additional 47,339 shares during the period. University of Texas Texas AM Investment Management Co. grew its stake in Netflix by 798.5% during the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network's stock worth $3,989,000 after buying an additional 37,807 shares in the last quarter. Ritholtz Wealth Management grew its stake in Netflix by 25.0% during the first quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network's stock worth $10,235,000 after buying an additional 21,260 shares in the last quarter. Finally, Wittenberg Investment Management Inc. increased its holdings in Netflix by 889.8% in the 4th quarter. Wittenberg Investment Management Inc. now owns 14,530 shares of the Internet television network's stock valued at $1,362,000 after buying an additional 13,062 shares during the period. 80.93% of the stock is owned by institutional investors.

Analysts Set New Price Targets

NFLX has been the subject of several analyst reports. JPMorgan Chase & Co. restated a "buy" rating on shares of Netflix in a research report on Thursday, August 20th. China Intl Cap raised shares of Netflix to a "strong-buy" rating in a research note on Tuesday, July 21st. Seaport Research Partners downgraded shares of Netflix from a "buy" rating to a "neutral" rating in a research report on Monday, July 20th. Morgan Stanley cut their target price on Netflix from $83.00 to $80.00 and set an "overweight" rating for the company in a research note on Thursday. Finally, Jefferies Financial Group reduced their target price on Netflix from $110.00 to $90.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $94.70.

Insider Activity

In other news, insider David A. Hyman sold 5,723 shares of Netflix stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. The trade was a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 sale, the director directly owned 2,460 shares in the company, valued at approximately $185,164.20. This 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. Over the last ninety days, insiders sold 179,045 shares of company stock worth $13,132,194. Company insiders own 1.24% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Morgan Stanley maintained an “overweight” rating while trimming its price target from $83 to $80, implying meaningful upside from recent trading levels. The lower target reflects caution, but the continued bullish rating provides some support for the investment case. Morgan Stanley Netflix price target report
• Positive Sentiment: Netflix is reportedly paying $200 million for U.S. rights to the 2027 Women’s World Cup. The event could provide valuable live-programming exposure and attract new viewers, although the rights fee adds to near-term content spending. Netflix 2027 Women’s World Cup rights report
• Neutral Sentiment: Netflix’s upcoming scripted series about the FTX collapse, “The Altruists,” is scheduled for November 19. The program could generate attention and engagement, but criticism from figures connected to the crypto industry creates some reputational risk. Netflix FTX series criticism report
• Negative Sentiment: Multiple reports say Netflix plans to eliminate about 5% of its workforce—potentially roughly 800 jobs—with an announcement possibly coming next week. While the cuts could reduce operating expenses and improve margins, investors may interpret them as evidence that management is responding to weaker engagement, intensifying competition from YouTube and pressure on growth. Netflix has not confirmed the plans. Los Angeles Times Netflix layoffs report
• Negative Sentiment: A reported $2.8 billion termination fee boosted Netflix’s cash balance, but it is a one-time payment rather than recurring streaming cash flow. Investors are being cautioned not to treat the windfall as evidence of stronger underlying earnings or content-financing capacity. Netflix termination fee and cash flow report

Netflix Price Performance

Netflix stock traded down $1.27 during mid-day trading on Friday, reaching $70.30. The company had a trading volume of 29,066,008 shares, compared to its average volume of 42,448,973. The business has a fifty day simple moving average of $75.48 and a 200 day simple moving average of $81.49. The company has a market cap of $292.72 billion, a P/E ratio of 22.13, a P/E/G ratio of 0.98 and a beta of 1.62. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $124.86. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix's revenue was up 13.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.72 EPS. On average, equities research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

About Netflix

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.

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