Commonwealth Equity Services LLC Sells 143,113 Shares of Netflix, Inc. $NFLX

Key Points

• Commonwealth Equity Services cut its Netflix stake by 10.7%, selling 143,113 shares in the third quarter; it retained 1,192,361 shares valued at about $83 million.
• Other institutional investors increased or initiated positions, and institutions collectively owned 80.93% of Netflix shares, indicating mixed investor activity.
• Netflix reported quarterly EPS of $0.87, above estimates, with revenue up 11.9% year over year. The stock was trading near its 52-week low, while analysts’ consensus rating was “Moderate Buy” with an average price target of $89.14.

Commonwealth Equity Services LLC cut its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 10.7% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,192,361 shares of the Internet television network's stock after selling 143,113 shares during the quarter. Commonwealth Equity Services LLC's holdings in Netflix were worth $82,964,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the business. Nykredit A S acquired a new stake in shares of Netflix during the 2nd quarter valued at about $105,697,000. Rockland Trust Co. raised its position in Netflix by 27.5% in 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 in the last quarter. Boomfish Wealth Group LLC raised its position in Netflix by 91.5% in the third quarter. Boomfish Wealth Group LLC now owns 34,547 shares of the Internet television network's stock worth $2,404,000 after purchasing an additional 16,510 shares in the last quarter. Welch & Forbes LLC lifted its stake in Netflix by 3,464.5% during the first quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network's stock worth $11,389,000 after purchasing an additional 115,125 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Netflix during the second quarter worth about $37,743,000. 80.93% of the stock is owned by institutional investors.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered Other Worlds: A Stranger Things Adventure, a live-action prequel series. Extending a popular franchise could support viewer engagement, though the financial impact and timing are not yet clear. Article: Stranger Things prequel series
• Positive Sentiment: A valuation analysis argues NFLX could be undervalued, estimating about 23% upside to fair value. This offers a counterpoint to recent weakness, but is an analyst view rather than a company announcement. Article: Netflix stock fair-value analysis
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales, but the transactions were made to cover tax withholding on vested equity awards. That stated purpose makes them a less clear signal about management’s view of the stock. Article: Netflix insider share sales
• Negative Sentiment: Coverage noted NFLX slipping even with the new Stranger Things plans, suggesting the content announcement has not eased near-term selling pressure. The shares are also near their 52-week low and far below their 52-week high, reflecting a weak recent trend. Article: Netflix stock slips despite new Stranger Things plans

Insider Activity

In other Netflix news, CFO Spencer Neumann sold 9,253 shares of the business's stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $66.15, for a total value of $612,085.95. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company's stock, valued at approximately $4,881,010.05. The trade was a 11.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 17,980 shares of the stock in a transaction that occurred on Monday, October 26th. The shares were sold at an average price of $64.03, for a total transaction of $1,151,259.40. Following the sale, the director directly owned 79,690 shares in the company, valued at $5,102,550.70. This trade represents a 18.41% decrease in their ownership of the stock. 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 quarter, insiders have sold 70,960 shares of company stock worth $4,752,050. 1.24% of the stock is currently owned by insiders.

Netflix Price Performance

NFLX stock traded down $2.15 during midday trading on Friday, reaching $63.41. 35,443,303 shares of the company's stock traded hands, compared to its average volume of 44,997,620. The company has a 50-day simple moving average of $71.03 and a two-hundred day simple moving average of $80.97. Netflix, Inc. has a 1-year low of $61.39 and a 1-year high of $116.73. The company has a market cap of $260.38 billion, a price-to-earnings ratio of 18.33, a PEG ratio of 0.91 and a beta of 1.62. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.05. The firm had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The business's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.59 EPS. On average, analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on NFLX. CLSA began coverage on Netflix in a research note on Monday, July 20th. They issued an "outperform" rating on the stock. President Capital cut their target price on Netflix from $134.00 to $83.00 and set a "buy" rating for the company in a research report on Monday, July 20th. Huber Research downgraded Netflix from a "buy" rating to an "underweight" rating in a research report on Tuesday, October 13th. CICC Research decreased their price target on Netflix from $110.00 to $90.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 21st. Finally, Bank of America lowered their price target on Netflix from $105.00 to $90.00 and set a "buy" rating on the stock in a research report on Wednesday, October 21st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $89.14.

Netflix Company Profile

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.

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