CPC Advisors LLC Reduces Position in Netflix, Inc. $NFLX

Key Points

• CPC Advisors LLC cut its Netflix stake by 75.5% in the first quarter, selling 46,424 shares and ending with 15,030 shares worth about $1.45 million.
• Institutional ownership remains high, with 80.93% of Netflix shares held by hedge funds and other institutional investors, even as some funds made small adjustments to their positions.
• Netflix has faced mixed market sentiment: analysts kept a Moderate Buy consensus with a $114.26 target, but the stock was under pressure after insider selling and concerns about missed acquisition opportunities.

CPC Advisors LLC trimmed its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 75.5% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 15,030 shares of the Internet television network's stock after selling 46,424 shares during the quarter. CPC Advisors LLC's holdings in Netflix were worth $1,445,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in NFLX. Apriem Advisors raised its stake in Netflix by 0.6% in the 3rd quarter. Apriem Advisors now owns 1,567 shares of the Internet television network's stock valued at $1,879,000 after purchasing an additional 9 shares during the last quarter. Tortoise Investment Management LLC grew its holdings in shares of Netflix by 10.8% during the third quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network's stock worth $110,000 after buying an additional 9 shares in the last quarter. Brass Tax Wealth Management Inc. raised its position in shares of Netflix by 3.2% in the third quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network's stock valued at $345,000 after buying an additional 9 shares during the last quarter. Pacific Sun Financial Corp lifted its stake in shares of 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 buying an additional 9 shares during the period. Finally, RS Crum Inc. lifted its stake in shares of Netflix by 3.6% during the third quarter. RS Crum Inc. now owns 288 shares of the Internet television network's stock valued at $345,000 after buying an additional 10 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix expanded its video podcast partnership with iHeartMedia, adding more iHeartPodcasts as video shows on the platform and strengthening its content offering. Netflix Expands Video Podcast Partnership with iHeartMedia
• Positive Sentiment: Netflix bought a “Hot Ones” spinoff, a content deal that reinforces its rivalry with YouTube and supports its push into popular creator-driven programming. Netflix Buys a ‘Hot Ones’ Spinoff
• Neutral Sentiment: Some commentary argues Netflix may look undervalued after the recent selloff, with analysts still seeing upside if the business continues to execute. Is Netflix Inc (NFLX) a Bargain After 5.8% Drop? GF Value Says Undervalued
• Negative Sentiment: Investor sentiment was hurt by reports that Netflix was outbid or passed over on major acquisition targets, fueling concern that the company is missing strategic growth opportunities. After Missing Out on Roku, Netflix Claims It Won't Buy Lionsgate. Here's Why the Market Hates That Answer.
• Negative Sentiment: Analysts and market commentators warned against “catching the falling knife,” reflecting concern that NFLX could remain under pressure after breaking to new lows. Netflix Stock Slump Continues: Citizens JMP Warns Against Catching the Falling Knife

Analyst Upgrades and Downgrades

Several research firms have commented on NFLX. Erste Group Bank cut shares of Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Weiss Ratings upgraded Netflix from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 4th. Morgan Stanley reissued an "overweight" rating on shares of Netflix in a research note on Friday, April 17th. Barclays set a $110.00 price objective on Netflix and gave the stock an "equal weight" rating in a report on Friday, April 17th. Finally, Rosenblatt Securities lowered their price objective on Netflix from $96.00 to $95.00 and set a "neutral" rating for the company in a research report on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $114.26.

Insider Activity at Netflix

In other news, insider David A. Hyman sold 5,722 shares of the firm's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total value of $503,993.76. Following the transaction, the insider owned 316,100 shares of the company's stock, valued at approximately $27,842,088. This trade represents a 1.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director owned 3,940 shares in the company, valued at $338,721.80. The trade was a 98.99% decrease in their position. 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. Insiders sold 1,349,019 shares of company stock valued at $123,105,721 over the last quarter. Company insiders own 1.24% of the company's stock.

Netflix Price Performance

Shares of Netflix stock opened at $72.88 on Tuesday. The business's fifty day moving average price is $88.30 and its 200 day moving average price is $89.75. Netflix, Inc. has a twelve month low of $71.81 and a twelve month high of $134.12. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $306.88 billion, a P/E ratio of 23.54, a PEG ratio of 0.98 and a beta of 1.50.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. The company had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm's revenue was up 16.2% on a year-over-year basis. During the same period in the prior year, the firm posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, research analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

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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