Motley Fool Asset Management LLC Sells 55,210 Shares of Netflix, Inc. $NFLX

Key Points

• Motley Fool Asset Management cut its Netflix stake by 14.2%, selling 55,210 shares during the third quarter and retaining 332,397 shares valued at approximately $23.1 million. Institutional investors own 80.93% of Netflix.
• Netflix beat third-quarter earnings expectations, reporting $0.87 in EPS and $12.87 billion in revenue, up 11.9% year over year. However, weaker fourth-quarter guidance, moderating viewer engagement and advertising delays have pressured the stock.
• Netflix shares opened at $61.99, near their one-year low of $61.51, while analysts maintained an overall “Moderate Buy” rating with a consensus price target of $89.14.

Motley Fool Asset Management LLC lowered its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 14.2% during the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 332,397 shares of the Internet television network's stock after selling 55,210 shares during the period. Netflix accounts for 0.9% of Motley Fool Asset Management LLC's portfolio, making the stock its 20th largest holding. Motley Fool Asset Management LLC's holdings in Netflix were worth $23,128,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Nykredit A S acquired a new stake in Netflix in the 2nd quarter worth $105,697,000. Rockland Trust Co. raised its position in shares of Netflix by 27.5% during the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock valued at $15,253,000 after buying an additional 47,339 shares during the last quarter. Boomfish Wealth Group LLC raised its position in shares of Netflix by 91.5% during the third quarter. Boomfish Wealth Group LLC now owns 34,547 shares of the Internet television network's stock valued at $2,404,000 after buying an additional 16,510 shares during the last quarter. Welch & Forbes LLC lifted its stake in shares of Netflix by 3,464.5% in the first quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network's stock valued at $11,389,000 after buying an additional 115,125 shares during the period. Finally, USS Investment Management Ltd lifted its stake in shares of Netflix by 31.8% in the first quarter. USS Investment Management Ltd now owns 886,527 shares of the Internet television network's stock valued at $85,244,000 after buying an additional 213,972 shares during the period. 80.93% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Netflix news, insider David A. Hyman sold 5,723 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This represents a 1.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of the stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares in the company, valued at $185,164.20. The trade was a 22.64% decrease in their ownership of the stock. 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 have sold a total of 197,025 shares of company stock valued at $14,283,453 over the last quarter. Company insiders own 1.24% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix exceeded third-quarter earnings expectations, reporting $0.87 in EPS versus the $0.82 consensus estimate. Revenue reached $12.87 billion, up 11.9% year over year, while management expects operating margins to expand to 31.5% in 2026 from 29.5% in 2025. Netflix and ServiceNow Have Fallen More Than 30%
• Positive Sentiment: Netflix’s advertising business remains a potential growth driver, with advertising revenue expected to increase more than 80% in 2026. Bullish analysts also point to strong free cash flow, a healthy balance sheet, international growth and ongoing margin expansion as support for the long-term investment case. Netflix's Advertising Business Expands Rapidly
• Neutral Sentiment: Netflix is preparing to release The Altruists, a dramatization of the FTX collapse featuring actor Anthony Boyle as Sam Bankman-Fried. The series could provide additional attention and engagement, although its direct financial impact is uncertain. Sam Bankman-Fried Wrote to Actor Portraying Him
• Neutral Sentiment: A director sold 17,980 shares worth approximately $1.15 million under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by 18.4%, but its planned nature makes it a limited signal of management sentiment. Netflix Director SEC Filing
• Negative Sentiment: The primary pressure on NFLX is weaker fourth-quarter revenue guidance and evidence that growth is moderating. Investors viewed the outlook as disappointing despite the EPS beat, prompting a sharp selloff and pushing the stock near its lowest level since 2024. Netflix Is Making Big Changes
• Negative Sentiment: Netflix’s advertising rollout has faced delays, and its approximately $2 billion 2026 advertising-revenue forecast has been viewed as a reduction from earlier expectations. Competition from YouTube and other streaming platforms is raising questions about whether Netflix can sustain ad momentum. Netflix Advertising Momentum
• Negative Sentiment: Reports that viewers are watching less Netflix have intensified concerns about engagement, cultural relevance and competition from short-form video. Needham downgraded the stock to Hold and Wolfe Research to Peer Perform, while several firms lowered price targets. ETF selling has added to near-term technical pressure. Netflix Stock Falls on Report That Viewers Watch Less

Netflix Trading Down 0.8%

NFLX opened at $61.99 on Thursday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $254.55 billion, a PE ratio of 17.92, a PEG ratio of 0.96 and a beta of 1.62. Netflix, Inc. has a 1-year low of $61.51 and a 1-year high of $116.73. The firm has a 50-day moving average price of $73.40 and a two-hundred day moving average price of $81.85.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, topping analysts' consensus estimates of $0.82 by $0.05. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The company had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. During the same period in the previous year, the firm posted $0.59 earnings per share. The company's revenue was up 11.9% on a year-over-year basis. As a group, equities analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the company. Jefferies Financial Group set a $85.00 price target on Netflix and gave the company a "buy" rating in a research note on Thursday, October 15th. Guggenheim decreased their price target on shares of Netflix from $80.00 to $78.00 and set a "buy" rating on the stock in a research note on Wednesday, October 21st. Canaccord Genuity Group set a $110.00 price objective on shares of Netflix in a research note on Wednesday, October 21st. TD Cowen reaffirmed a "buy" rating and set a $100.00 price objective on shares of Netflix in a report on Wednesday, October 21st. Finally, Weiss Ratings lowered shares of Netflix from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, October 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $89.14.

Netflix Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.

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