Castle Rock Wealth Management LLC Reduces Stock Position in Netflix, Inc. $NFLX

Key Points

• Castle Rock Wealth Management cut its Netflix position by 77.2% in the second quarter, selling 21,442 shares and retaining 6,339 shares valued at approximately $470,000.
• Netflix’s quarterly results were mixed: EPS slightly beat estimates and revenue grew 13.4% year over year, but revenue missed expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48.
• Institutional ownership remains high at 80.93%, but substantial insider selling and continued underperformance versus the S&P 500 are weighing on sentiment. Shares recently traded near $74, below both their 50-day and 200-day moving averages.

Castle Rock Wealth Management LLC cut its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 77.2% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 6,339 shares of the Internet television network's stock after selling 21,442 shares during the period. Castle Rock Wealth Management LLC's holdings in Netflix were worth $470,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in NFLX. Imprint Wealth LLC purchased a new position in Netflix during the third quarter worth $25,000. Wealth Watch Advisors INC bought a new position in Netflix during the third quarter valued at $103,000. Strategic Wealth Investment Group LLC purchased a new stake in shares of Netflix in the second quarter valued at $121,000. Wiser Advisor Group LLC purchased a new stake in shares of Netflix in the third quarter valued at $114,000. Finally, Beaird Harris Wealth Management LLC lifted its holdings in shares of 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 acquiring an additional 10 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Netflix

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

Insider Transactions at Netflix

In related news, Director Bradford L. Smith sold 35,990 shares of the business's stock in a transaction that occurred 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 transaction, the director owned 79,690 shares of the company's stock, valued at $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,723 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This represents a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 591,047 shares of company stock worth $48,355,766. Insiders own 1.24% of the company's stock.

Netflix Stock Performance

NFLX stock opened at $74.14 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The business has a 50-day moving average price of $75.32 and a 200 day moving average price of $84.88. The company has a market capitalization of $308.71 billion, a P/E ratio of 23.34, a PEG ratio of 0.93 and a beta of 1.52. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $126.71.

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

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Wells Fargo & Company set a $80.00 price target on shares of Netflix and gave the stock an "equal weight" rating in a research note on Friday, July 17th. Jefferies Financial Group reduced their price objective on shares of Netflix from $128.00 to $110.00 and set a "buy" rating on the stock in a research report on Wednesday, June 10th. KeyCorp reissued an "overweight" rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Weiss Ratings lowered Netflix from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, June 26th. Finally, HSBC upped their target price on Netflix from $106.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, April 10th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $103.48.

Netflix Company 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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