Gradient Investments LLC Trims Stock Position in Netflix, Inc. $NFLX

Key Points

• Gradient Investments cut its Netflix position by 23.6% in the second quarter, selling 80,052 shares and retaining 258,969 shares valued at approximately $18.49 million. Institutional investors and hedge funds collectively own 80.93% of Netflix.
• Analysts maintain a generally positive outlook, with Netflix receiving a consensus rating of “Moderate Buy” and an average price target of $103.48. Ratings include 33 Buys, four Strong Buys, 17 Holds and one Sell.
• Netflix shares opened at $74.14, well below their 52-week high of $126.71. The company narrowly beat quarterly earnings expectations, while revenue increased 13.4% year over year but slightly missed analysts’ estimates.

Gradient Investments LLC trimmed its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 23.6% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 258,969 shares of the Internet television network's stock after selling 80,052 shares during the period. Gradient Investments LLC's holdings in Netflix were worth $18,490,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of NFLX. Pacific Sun Financial Corp lifted its position in shares of Netflix by 1.6% in 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 in the last quarter. Beaird Harris Wealth Management LLC boosted its stake in shares of Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock valued at $137,000 after acquiring an additional 10 shares during the last quarter. Monograph Wealth Advisors LLC increased its position in Netflix by 1.8% during the 2nd quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock worth $913,000 after purchasing an additional 12 shares in the last quarter. Resources Management Corp CT ADV increased its position in Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network's stock worth $1,110,000 after purchasing an additional 16 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its stake in Netflix by 1.4% in the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock valued at $2,009,000 after purchasing an additional 20 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on NFLX. CLSA started coverage on shares of Netflix in a report on Monday, July 20th. They issued an "outperform" rating on the stock. Jefferies Financial Group cut their price objective on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research report on Wednesday, June 10th. KGI Securities downgraded shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a research note on Friday, July 17th. DZ Bank restated a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Finally, Moffett Nathanson lowered their price target on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Netflix has a consensus rating of "Moderate Buy" and an average target price of $103.48.

Netflix Trading Up 0.6%

NASDAQ:NFLX opened at $74.14 on Friday. The stock has a market cap of $308.71 billion, a price-to-earnings ratio of 23.34, a PEG ratio of 0.93 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The business has a fifty day moving average of $75.32 and a 200-day moving average of $84.88. 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 announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company's revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.72 earnings per share. Equities analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Key Stories 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 Activity at Netflix

In other news, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction on 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 completion of the sale, the director owned 79,690 shares of the company's stock, valued at $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,723 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the sale, the insider directly owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 591,047 shares of company stock worth $48,355,766. Insiders own 1.24% of the company's stock.

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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