Edgestream Partners L.P. Cuts Holdings in Netflix, Inc. $NFLX

Key Points

• Edgestream Partners L.P. cut its Netflix stake by 65.5% in the first quarter, selling 31,333 shares and retaining 16,497 shares valued at approximately $1.586 million. Institutional investors collectively own 80.93% of Netflix.
• Analysts maintain a generally positive outlook, with Netflix receiving a consensus “Moderate Buy” rating and an average price target of $103.48, despite several recent target reductions and downgrades.
• Netflix shares opened at $73.33, well below their 52-week high of $126.71. The latest quarter slightly beat EPS estimates, but revenue fell just short of expectations, while insiders sold about 459,255 shares worth $39.3 million during the quarter.

Edgestream Partners L.P. trimmed its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 65.5% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 16,497 shares of the Internet television network's stock after selling 31,333 shares during the period. Edgestream Partners L.P.'s holdings in Netflix were worth $1,586,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Pacific Sun Financial Corp increased its position 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 acquiring an additional 9 shares during the last quarter. Beaird Harris Wealth Management LLC grew its stake in Netflix by 9.6% in the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock valued at $137,000 after purchasing an additional 10 shares during the period. Monograph Wealth Advisors LLC increased its position in shares of Netflix by 1.8% during the 2nd quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock valued at $913,000 after purchasing an additional 12 shares during the last quarter. Resources Management Corp CT ADV increased its position in shares of Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network's stock valued at $1,110,000 after purchasing an additional 16 shares during the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its stake in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock worth $2,009,000 after purchasing an additional 20 shares during the period. Hedge funds and other 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’s lower valuation and aggressive stock repurchases are supporting the view that the sell-off may have been excessive. Analysts cited in the report remain broadly bullish despite concerns about moderating growth. Netflix's Big Sell-Off May Be Sending the Wrong Signal
• Positive Sentiment: A Fundsmith investor letter argues that difficulties facing rival streaming services highlight Netflix’s strong competitive moat, potentially reinforcing its long-term pricing power and customer retention. Rivals’ Loss Signals Netflix’s Strong Moat
• Positive Sentiment: Another analyst-focused report says NFLX is becoming attractive as the share price declines, with Netflix’s scale, recurring subscription revenue and potential in advertising, gaming and video podcasting providing longer-term upside. NFLX Stock Looks Attractive Even as Growth Slows
• Neutral Sentiment: Coverage of Netflix’s buyback history explains how repurchases can support earnings per share and signal management confidence, but it does not announce a new buyback catalyst. Netflix’s Stock Buybacks: History & Impact Explained
• Negative Sentiment: Netflix’s latest quarter slightly exceeded EPS expectations, but revenue was just below consensus and growth concerns triggered a steep post-earnings decline. The stock remains well below its 52-week high, reflecting investor skepticism about near-term momentum.
• Negative Sentiment: Potential growth initiatives such as gaming and video podcasting are viewed as promising but unlikely to materially improve results immediately. A paused Paramount–Warner Bros. transaction also removes a possible industry catalyst, even though avoiding the deal may reduce execution risk. With Paramount's Acquisition of Warner Bros. on Hold and Netflix Down 38%, Is Netflix Stock Finally a Buy?

Analysts Set New Price Targets

NFLX has been the topic of a number of research reports. Bank of America reaffirmed a "buy" rating and issued a $125.00 price target on shares of Netflix in a report on Monday, May 18th. Citigroup lowered Netflix from a "buy" rating to a "positive" rating in a report on Monday, July 20th. Morgan Stanley reissued an "overweight" rating and issued a $90.00 target price (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. Wolfe Research restated an "outperform" rating and issued a $107.00 target price on shares of Netflix in a research note on Friday, April 17th. Finally, KGI Securities cut Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price target on the stock. in a research report on Friday, July 17th. Four investment 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $103.48.

Insiders Place Their Bets

In other news, CFO Spencer Adam Neumann sold 9,253 shares of Netflix stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $6,563,353.65. This trade represents a 11.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Bradford L. Smith sold 35,990 shares of the business's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares of the company's stock, valued at $6,177,568.80. The trade was a 31.11% 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. In the last quarter, insiders sold 459,255 shares of company stock worth $39,279,899. 1.24% of the stock is currently owned by insiders.

Netflix Stock Performance

Shares of NFLX opened at $73.33 on Tuesday. The stock's 50-day simple moving average is $76.36 and its 200 day simple moving average is $85.26. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. 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 $305.34 billion, a price-to-earnings ratio of 23.08, a price-to-earnings-growth ratio of 0.90 and a beta of 1.52.

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

Netflix 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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