Magellan Asset Management Ltd Reduces Stock Position in Netflix, Inc. $NFLX

Key Points

• Magellan Asset Management Ltd reduced its Netflix stake by 8.3% in the first quarter, selling 136,000 shares and leaving it with 1.5 million shares valued at about $144.2 million.
• Netflix recently beat earnings expectations, reporting $0.80 EPS versus $0.79 expected, while revenue rose 13.4% year over year to $12.56 billion.
• Despite the quarter’s mixed market reaction, Wall Street remains mostly bullish: analysts still show a consensus “Moderate Buy” rating, though several have cut price targets after the recent stock decline.

Magellan Asset Management Ltd cut its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 8.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,500,208 shares of the Internet television network's stock after selling 136,000 shares during the quarter. Netflix comprises about 1.9% of Magellan Asset Management Ltd's holdings, making the stock its 25th largest position. Magellan Asset Management Ltd's holdings in Netflix were worth $144,245,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Brighton Jones LLC grew its holdings in Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after buying an additional 257 shares in the last quarter. Revolve Wealth Partners LLC lifted its holdings in shares of Netflix by 16.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock worth $912,000 after buying an additional 144 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock worth $1,883,000 after buying an additional 246 shares in the last quarter. Strategic Investment Advisors MI lifted its holdings in shares of Netflix by 18.9% in the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock worth $1,036,000 after buying an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its position in shares of Netflix by 12.1% in the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after acquiring an additional 228 shares during the period. 80.93% of the stock is currently owned by institutional investors.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix delivered an earnings beat and continues to post double-digit revenue growth, while bulls argue the selloff has made the stock look inexpensive on earnings and cash flow. Netflix “Is Not a Broken Company” and Trades At Just 19x Earnings. Jim Cramer Says Start Buying
• Positive Sentiment: Several analysts and commentators say the post-earnings drop may have created a buying opportunity, citing Netflix’s ad business, live content ambitions, international growth, and strong free-cash-flow potential. Netflix (NFLX) Stock Still Looks Cheap On Cash Flow And Earnings
• Positive Sentiment: Phillip Securities upgraded Netflix from “moderate buy” to “strong-buy,” with one analyst saying engagement shows no signs of slowing and setting a higher price target than the current trading level. Netflix, Inc. (NFLX) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Wall Street coverage remains active and largely mixed-to-bullish, with some reports pointing to meaningful upside in consensus price targets even after the recent slide. Netflix Fell 45% Over 12 Months But This Ratings House Sees A Doubling Share Price
• Negative Sentiment: Investors are worried about softer revenue guidance, slowing growth momentum, and Netflix making viewership metrics harder to track, which raises questions about transparency and future monetization. Netflix (NFLX) Could Be 18% Undervalued After Soft Guidance Raised Fresh Growth Questions
• Negative Sentiment: Multiple articles described the stock’s recent action as a sharp post-earnings crash or “miserable stretch,” reflecting concern that the latest quarter did not convince investors that growth will reaccelerate soon. Netflix just made its slowdown harder to measure

Insider Activity

In other news, CFO Spencer Adam Neumann sold 9,253 shares of Netflix stock in a transaction on Thursday, May 7th. The shares were 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 directly owned 73,787 shares of the company's stock, valued at approximately $6,563,353.65. The trade was a 11.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider David A. Hyman sold 5,722 shares of the company's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the transaction, the insider owned 316,100 shares of the company's stock, valued at $27,842,088. This trade 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. In the last 90 days, insiders have sold 899,839 shares of company stock worth $80,141,661. Corporate insiders own 1.24% of the company's stock.

Netflix Stock Up 1.6%

NFLX stock opened at $68.67 on Wednesday. The company's 50 day moving average is $79.42 and its 200 day moving average is $86.49. The stock has a market cap of $285.94 billion, a price-to-earnings ratio of 21.61, a price-to-earnings-growth ratio of 0.85 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.41 and a debt-to-equity ratio of 0.39. 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 earnings results 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 net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the business posted $0.72 earnings per share. Netflix's revenue for the quarter was up 13.4% on a year-over-year basis. Sell-side analysts predict that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities analysts recently commented on NFLX shares. Morgan Stanley reaffirmed an "overweight" rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Piper Sandler reissued an "overweight" rating and issued a $85.00 price target (down from $115.00) on shares of Netflix in a report on Friday. Wells Fargo & Company set a $80.00 price target on shares of Netflix and gave the company an "equal weight" rating in a report on Friday. HSBC boosted their price target on shares of Netflix from $106.00 to $114.00 and gave the company a "buy" rating in a research report on Friday, April 10th. Finally, TD Cowen lowered their price objective on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $104.21.

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.

Want to see what other hedge funds are holding NFLX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Netflix, Inc. (NASDAQ:NFLX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.