Abner Herrman & Brock LLC Cuts Stock Position in Netflix, Inc. $NFLX

Key Points

• Abner Herrman & Brock LLC reduced its Netflix position by 25.6% in the second quarter, selling 82,580 shares and retaining 239,607 shares valued at approximately $17.1 million. Institutional investors still own about 80.93% of Netflix.
• Netflix shares opened at $74.14, below their 50-day and 200-day moving averages, and remain well below the 12-month high of $126.71. The company’s latest quarter showed 13.4% year-over-year revenue growth and a slight EPS beat, but revenue narrowly missed analyst expectations.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48, although some firms recently downgraded the stock to neutral or hold. Netflix insiders also sold roughly $48.4 million in shares over the past quarter, largely through pre-arranged plans.

Abner Herrman & Brock LLC cut its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 25.6% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 239,607 shares of the Internet television network's stock after selling 82,580 shares during the quarter. Netflix makes up about 1.6% of Abner Herrman & Brock LLC's investment portfolio, making the stock its 23rd biggest position. Abner Herrman & Brock LLC's holdings in Netflix were worth $17,108,000 at the end of the most recent quarter.

Several other large investors have also made changes to their positions in NFLX. Pacific Sun Financial Corp boosted its position in Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock valued at $688,000 after purchasing an additional 9 shares during the last quarter. Beaird Harris Wealth Management LLC increased its position in Netflix by 9.6% in the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock worth $137,000 after purchasing an additional 10 shares during the last quarter. Monograph Wealth Advisors LLC raised its stake in shares of Netflix by 1.8% during the 2nd quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock worth $913,000 after purchasing an additional 12 shares in the last quarter. Resources Management Corp CT ADV raised its stake in shares of Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network's stock worth $1,110,000 after purchasing an additional 16 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its stake in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock worth $2,009,000 after purchasing an additional 20 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix will exclusively premiere Grand Theft Auto VI: An Extended Look on August 27, six hours before its YouTube release. The high-profile Rockstar Games event could drive subscriber engagement, streaming traffic and broader attention to Netflix’s platform. GTA VI Extended Look to Debut on Netflix
• Positive Sentiment: Wall Street’s outlook remains moderately bullish despite NFLX’s weak recent performance. Analysts’ consensus rating is “Moderate Buy,” with an average price target of approximately $103.48, substantially above recent trading levels. Netflix Receives Moderate Buy Consensus
• Positive Sentiment: One valuation analysis estimates Netflix could be about 26% undervalued based on discounted-cash-flow and market-multiple models. A multiyear licensing agreement involving The Walking Dead universe may provide additional content and monetization opportunities. Netflix May Be Undervalued
• Neutral Sentiment: Netflix’s latest quarterly results were mixed: earnings per share narrowly beat estimates and revenue rose 13.4% year over year, but revenue slightly missed expectations. Investors may therefore remain focused on future growth and engagement trends.
• Negative Sentiment: CEO Gregory Peters sold 27,312 shares worth about $2.0 million, reducing his direct holdings by 18.42%. Director Richard Barton also sold 2,160 shares for approximately $162,000. Barton’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance, but the combined insider selling may still weigh on sentiment. Netflix Insider Selling
• Negative Sentiment: Netflix has underperformed the S&P 500 over the past year amid concerns about engagement, limited viewing-data disclosure and intensifying streaming competition. The shares also remain below their major moving averages, signaling continued technical pressure. Netflix Underperforms the S&P 500

Netflix Price Performance

NASDAQ NFLX opened at $74.14 on Friday. The stock has a 50-day simple moving average of $75.32 and a 200 day simple moving average of $84.88. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The stock has a market capitalization of $308.71 billion, a PE ratio of 23.34, a P/E/G ratio of 0.93 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating 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 firm posted $0.72 EPS. The company's revenue was up 13.4% on a year-over-year basis. Research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts recently commented on NFLX shares. Erste Group Bank cut Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Oppenheimer set a $85.00 price objective on shares of Netflix and gave the company an "outperform" rating in a research report on Friday, July 17th. Needham & Company LLC reiterated a "buy" rating on shares of Netflix in a research note on Friday, April 17th. Seaport Research Partners downgraded shares of Netflix from a "buy" rating to a "neutral" rating in a research report on Monday, July 20th. Finally, KGI Securities lowered shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price target on the stock. in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $103.48.

Insider Transactions at Netflix

In related news, Director Richard N. Barton sold 2,160 shares of the business's stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the transaction, the director directly owned 246 shares in the company, valued at $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company's stock in a transaction that occurred 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 directly owned 178,954 shares of the company's stock, valued at approximately $13,126,275.90. This trade represents a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 591,047 shares of company stock worth $48,355,766. 1.24% of the stock is currently owned by insiders.

Netflix Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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