California State Teachers Retirement System Cuts Stock Position in Netflix, Inc. $NFLX

Key Points

• CalSTRS cut its Netflix position by 2.6% in the first quarter, selling 170,210 shares and retaining 6.44 million shares worth approximately $619 million. Netflix represented about 0.7% of the pension fund’s portfolio.
• Despite CalSTRS’s reduction, major institutions including Vanguard, State Street, Geode Capital and Capital World Investors substantially increased their Netflix holdings; institutions and hedge funds collectively own 80.93% of the stock.
• Netflix posted slightly better-than-expected quarterly earnings and 13.4% year-over-year revenue growth, but weaker guidance triggered a sharp selloff. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48, while insider selling and intensifying competition remain concerns.

California State Teachers Retirement System trimmed its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 2.6% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,438,286 shares of the Internet television network's stock after selling 170,210 shares during the quarter. Netflix accounts for approximately 0.7% of California State Teachers Retirement System's investment portfolio, making the stock its 20th biggest position. California State Teachers Retirement System owned 0.15% of Netflix worth $619,041,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of NFLX. Vanguard Group Inc. boosted its stake in shares of Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the period. State Street Corp grew its holdings in shares of Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors increased its stake in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after buying an additional 80,025,890 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its stake in Netflix by 685.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after buying an additional 75,107,069 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Canada’s government appears poised to scrap an entertainment levy affecting companies including Netflix, potentially removing a regulatory cost and easing tensions with U.S. officials and Hollywood studios. Netflix Tax Will Soon Be Scrapped, Canada Hints in Court Filing
• Positive Sentiment: Several analysts and commentators view the roughly 25% decline from recent levels—and more than 40% drop from the highs—as excessive, arguing that Netflix is now valued more attractively relative to its history. They cite strong profitability, share buybacks, advertising growth and potential AI-related advantages as reasons the stock could recover. Netflix Is Betting Billions That AI Will Strengthen Its Business
• Positive Sentiment: Options activity and investor commentary indicate that bullish traders are still positioning for a rebound after the earnings-driven decline, suggesting the selloff has attracted dip buyers. Call Traders Aren't Giving Up on Netflix Stock
• Neutral Sentiment: Former LVMH CEO Bernard Arnault said he regrets selling his early Netflix investment too soon. The comments reinforce Netflix’s long-term wealth-creation history but are unlikely to affect near-term fundamentals. Bernard Arnault Regrets Selling His Early Netflix Stake
• Negative Sentiment: The primary overhang remains disappointing third-quarter guidance, which overshadowed an otherwise solid second-quarter report and contributed to the sharp post-earnings selloff. Analysts also caution that Netflix has fewer obvious avenues to accelerate earnings growth.
• Negative Sentiment: Altimetry argues Netflix may still not be cheap because its valuation assumes sustained high profitability and continued growth despite intensifying competition from Disney, Paramount Skydance, YouTube, short-form video and AI-generated content. 3 Stocks Standing Out and 2 Losing Momentum

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Jefferies Financial Group decreased their price target on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research report on Wednesday, June 10th. Piper Sandler reaffirmed an "overweight" rating and set a $85.00 price objective (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. KGI Securities cut Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a research note on Friday, July 17th. China Intl Cap upgraded Netflix to a "strong-buy" rating in a report on Tuesday, July 21st. Finally, Wolfe Research reissued an "outperform" rating and set a $107.00 target price on shares of Netflix in a research note on Friday, April 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Insider Activity

In related news, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer owned 73,787 shares of the company's stock, valued at $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the sale, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 899,839 shares of company stock valued at $80,141,661. Insiders own 1.24% of the company's stock.

Netflix Trading Up 2.8%

NASDAQ NFLX opened at $72.39 on Wednesday. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71. The stock has a market capitalization of $301.43 billion, a PE ratio of 22.79, a price-to-earnings-growth ratio of 0.88 and a beta of 1.52. The firm has a 50 day moving average of $77.61 and a two-hundred day moving average of $85.74.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data 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. 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 the consensus estimate of $12.58 billion. During the same period in the prior year, the firm posted $0.72 EPS. The company's quarterly revenue was up 13.4% compared to the same quarter last year. As a group, research analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

About Netflix

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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