B.A. Schrock Wealth Management Inc. Acquires 84,706 Shares of Netflix, Inc. $NFLX

Key Points

• B.A. Schrock Wealth Management acquired 84,706 Netflix shares in the third quarter, valued at approximately $5.75 million and representing 1.9% of its portfolio. Institutional investors collectively own 80.93% of Netflix.
• Netflix shares opened at $70.57, near the lower end of their 52-week range, while analysts maintain a “Moderate Buy” consensus with an average price target of $94.41.
• Investors face mixed signals ahead of the October 20 earnings report: planned workforce reductions and potential FIFA World Cup rights could improve efficiency and engagement, but rising churn, competition, slowing growth concerns and analyst downgrades remain risks.

B.A. Schrock Wealth Management Inc. acquired a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 84,706 shares of the Internet television network's stock, valued at approximately $5,747,000. Netflix comprises 1.9% of B.A. Schrock Wealth Management Inc.'s portfolio, making the stock its 17th biggest holding.

A number of other institutional investors also recently bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Netflix in the 2nd quarter worth approximately $24,902,221,000. Invesco Ltd. raised its position in Netflix by 835.9% in the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock worth $4,075,062,000 after acquiring an additional 38,818,947 shares during the period. Bank of New York Mellon Corp bought a new position in Netflix in the second quarter worth approximately $1,906,482,000. Legal & General Group Plc purchased a new position in shares of Netflix during the 2nd quarter worth $1,886,526,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Netflix during the 2nd quarter worth $1,481,303,000. Institutional investors own 80.93% of the company's stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix plans to eliminate approximately 6% of its global workforce, primarily across product, technology, legal and human-resources functions. Management says the restructuring will improve discipline and redirect resources toward future investments, potentially supporting margins and efficiency. Netflix is laying off roughly 6% of its workforce
• Positive Sentiment: Some analysts and investors remain constructive, arguing that Netflix’s profitable operating model, international growth and ability to reinvent its business could make the recent selloff a buying opportunity. The shares trade at roughly 22 times trailing earnings. Forget Selling Netflix: NFLX Is the Streaming Stock I'm Buying More Of
• Positive Sentiment: Netflix secured exclusive rights to the 2030 FIFA World Cup in Spain and Andorra, offering a potential engagement and subscriber-acquisition catalyst. Netflix Stock Scores as It Lands 2030 World Cup Rights
• Neutral Sentiment: Investors will look to the October 20 earnings report for evidence that revenue growth, free cash flow and viewing trends are stabilizing. Analysts expect earnings growth, but recent estimates have been trimmed modestly. Netflix Is Set to Release Earnings on Oct. 20
• Negative Sentiment: The layoffs are also being interpreted as evidence that growth and user engagement have cooled. Reports cite stronger competition from YouTube and other streaming services, while Netflix seeks to keep audiences watching. Netflix to cut 1,000 jobs as growth concerns mount
• Negative Sentiment: App-tracking data reportedly showed a 16.6% increase in U.S. churn, adding to concerns about weaker domestic demand ahead of earnings. Netflix Has New Warning Signs Ahead of Q3 Earnings
• Negative Sentiment: Analyst downgrades and lower price targets reflect concerns about rising content costs, slowing viewership and whether cost-cutting alone can solve Netflix’s engagement problem. Netflix Stock Is Double Downgraded by Huber Research

Wall Street Analyst Weigh In

NFLX has been the subject of a number of recent research reports. Robert W. Baird set a $90.00 price objective on shares of Netflix and gave the company an "outperform" rating in a research report on Wednesday, July 22nd. Morgan Stanley decreased their target price on Netflix from $83.00 to $80.00 and set an "overweight" rating on the stock in a report on Thursday, October 8th. Pivotal Research decreased their target price on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a report on Friday, July 17th. Wells Fargo & Company downgraded Netflix from a "neutral" rating to an "underweight" rating and lowered their target price for the company from $80.00 to $57.00 in a research report on Friday, September 18th. Finally, Deutsche Bank Aktiengesellschaft upgraded Netflix from a "hold" rating to a "buy" rating and lowered their target price for the company from $100.00 to $95.00 in a research report on Tuesday, September 29th. Three analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $94.41.

Insider Buying and Selling

In other Netflix news, Director Richard Barton sold 2,160 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the sale, the director owned 246 shares in the company, valued at approximately $18,474.60. This represents a 89.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory Peters sold 27,312 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 179,045 shares of company stock worth $13,132,194 in the last three months. Corporate insiders own 1.24% of the company's stock.

Netflix Stock Performance

Shares of NASDAQ NFLX opened at $70.57 on Thursday. The stock has a market cap of $293.85 billion, a PE ratio of 22.21, a price-to-earnings-growth ratio of 0.99 and a beta of 1.62. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $124.86. The firm has a fifty day moving average price of $75.27 and a 200-day moving average price of $80.87. 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 - Get Free Report) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion for the quarter, compared to analysts' expectations of $12.58 billion. During the same quarter in the previous year, the company earned $0.72 EPS. Netflix's revenue for the quarter was up 13.4% on a year-over-year basis. Equities analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal 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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