Gobi Capital LLC Cuts Stock Position in Netflix, Inc. $NFLX

Key Points

• Gobi Capital LLC reduced its holdings in Netflix, Inc. by 21.1%, selling 30,986 shares and now owning 115,850 shares valued at approximately $108 million.
• Netflix's stock currently has a consensus target price of $1,297.66 with ratings varying from Strong Buy to Sell from different analysts.
• Insiders, including CEO Gregory K. Peters and Director Reed Hastings, sold significant shares recently, with a total of 123,163 shares valued at approximately $151.9 million.

Gobi Capital LLC decreased its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 21.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 115,850 shares of the Internet television network's stock after selling 30,986 shares during the period. Netflix comprises approximately 6.2% of Gobi Capital LLC's portfolio, making the stock its 9th biggest holding. Gobi Capital LLC's holdings in Netflix were worth $108,034,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Netflix by 1.4% during the 1st quarter. Vanguard Group Inc. now owns 37,997,260 shares of the Internet television network's stock valued at $35,433,585,000 after purchasing an additional 509,255 shares during the period. Price T Rowe Associates Inc. MD increased its holdings in shares of Netflix by 2.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock worth $10,940,505,000 after purchasing an additional 304,399 shares during the period. GAMMA Investing LLC increased its holdings in shares of Netflix by 109,524.3% in the first quarter. GAMMA Investing LLC now owns 8,835,722 shares of the Internet television network's stock worth $8,239,576,000 after purchasing an additional 8,827,662 shares during the period. Invesco Ltd. increased its holdings in shares of Netflix by 8.3% in the first quarter. Invesco Ltd. now owns 4,664,818 shares of the Internet television network's stock worth $4,350,083,000 after purchasing an additional 356,617 shares during the period. Finally, Wellington Management Group LLP increased its holdings in shares of Netflix by 3.5% in the first quarter. Wellington Management Group LLP now owns 4,385,666 shares of the Internet television network's stock worth $4,089,765,000 after purchasing an additional 148,675 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix Stock Up 0.5%

NFLX traded up $5.74 on Tuesday, hitting $1,213.99. The company had a trading volume of 1,932,115 shares, compared to its average volume of 4,066,185. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34. Netflix, Inc. has a 52-week low of $660.80 and a 52-week high of $1,341.15. The stock has a fifty day simple moving average of $1,230.21 and a 200-day simple moving average of $1,119.60. The firm has a market capitalization of $515.86 billion, a P/E ratio of 51.73, a P/E/G ratio of 2.03 and a beta of 1.60.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, beating analysts' consensus estimates of $7.07 by $0.12. The business had revenue of $11.08 billion during the quarter, compared to the consensus estimate of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The business's revenue for the quarter was up 15.9% on a year-over-year basis. During the same quarter last year, the firm earned $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. As a group, equities analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on NFLX shares. JPMorgan Chase & Co. upped their price target on shares of Netflix from $1,230.00 to $1,300.00 and gave the stock a "neutral" rating in a report on Friday, July 18th. Canaccord Genuity Group restated a "buy" rating on shares of Netflix in a research report on Thursday, July 10th. Citigroup restated a "neutral" rating and set a $1,250.00 price target (up from $1,020.00) on shares of Netflix in a research report on Thursday, May 29th. Evercore ISI restated an "outperform" rating on shares of Netflix in a research report on Thursday, May 15th. Finally, Wells Fargo & Company upped their price target on shares of Netflix from $1,500.00 to $1,560.00 and gave the company an "overweight" rating in a research report on Friday, July 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average target price of $1,297.66.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 2,026 shares of Netflix stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the transaction, the chief executive officer owned 12,781 shares in the company, valued at $14,793,240.64. This trade represents a 13.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Spencer Adam Neumann sold 2,601 shares of Netflix stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $1,307.22, for a total transaction of $3,400,079.22. Following the transaction, the chief financial officer owned 3,691 shares in the company, valued at approximately $4,824,949.02. This trade represents a 41.34% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 93,629 shares of company stock worth $116,131,982. Insiders own 1.37% of the company's stock.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.