Netflix, Inc. $NFLX Holdings Boosted by Blume Capital Management Inc.

Key Points

• Blume Capital Management increased its Netflix stake by 5,311.2% in the third quarter, reaching 27,597 shares valued at approximately $1.92 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix exceeded quarterly EPS expectations, reporting $0.87 versus the $0.82 consensus, while revenue rose 11.9% year over year to $12.87 billion. However, the stock traded near its one-year low at $63.90, well below its 50-day and 200-day moving averages.
• Insiders sold 179,045 shares worth about $13.1 million over the past 90 days, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus and an average price target of $89.59. Concerns remain over weaker guidance, engagement trends and Netflix’s content and leadership restructuring.

Blume Capital Management Inc. lifted its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 5,311.2% during the third quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 27,597 shares of the Internet television network's stock after purchasing an additional 27,087 shares during the quarter. Blume Capital Management Inc.'s holdings in Netflix were worth $1,920,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Netflix during the 2nd quarter valued at about $24,902,221,000. State Street Corp increased its position in shares of Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock valued at $12,861,252,000 after buying an additional 8,474,820 shares during the period. Bank of America Corp DE lifted its holdings in shares of Netflix by 4.3% in the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock worth $5,571,201,000 after buying an additional 2,376,349 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Netflix in the second quarter worth about $1,906,482,000. Finally, Legal & General Group Plc purchased a new stake in shares of Netflix in the second quarter worth about $1,886,526,000. 80.93% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Netflix

In other news, Director Richard N. Barton sold 720 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $75.27, for a total transaction of $54,194.40. Following the transaction, the director directly owned 2,460 shares in the company, valued at approximately $185,164.20. This represents a 22.64% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is currently owned by company insiders.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $63.90 on Tuesday. The company's fifty day moving average price is $74.27 and its 200-day moving average price is $82.27. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.07. The firm has a market capitalization of $262.39 billion, a price-to-earnings ratio of 22.47, a PEG ratio of 0.96 and a beta of 1.62. Netflix, Inc. has a one year low of $62.86 and a one year high of $116.73.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) 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 EPS. The firm's revenue was up 11.9% compared to the same quarter last year. On average, equities research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix delivered a solid Q3 financial performance, exceeding consensus EPS estimates, expanding margins to a record level, and growing revenue year over year. The company’s sizable share-buyback activity may also support per-share results. Netflix Just Posted a Record Margin
• Positive Sentiment: Analysts noted that international revenue trends and wider margins could provide a foundation for a recovery, while some investors view the post-earnings selloff as a potential buying opportunity. International Revenue Trends
• Neutral Sentiment: Reported short interest was listed at zero shares, implying no measurable short-interest ratio. The figure may reflect a reporting or data issue and offers little actionable insight for investors.
• Neutral Sentiment: Netflix is undergoing a major content and leadership shake-up, including the departure of senior executives and roughly 1,000 job cuts. Management appears to be repositioning the company to improve content performance and regain viewing share. Netflix Content Leadership Changes
• Negative Sentiment: Investors were disappointed that guidance implied approximately 13% annual revenue growth and reportedly included a weaker fourth-quarter outlook and reduced expectations for 2026 advertising revenue. The market viewed the outlook as insufficient for Netflix’s valuation. Netflix Post-Earnings Dip
• Negative Sentiment: Engagement and watch-hour trends have become the primary overhang. Co-CEO Greg Peters acknowledged that U.S. engagement can improve, raising concerns that Netflix is losing attention to YouTube, artificial intelligence-driven content, and short-form video. Netflix U.S. Engagement Concerns

Analysts Set New Price Targets

NFLX has been the subject of a number of analyst reports. Robert W. Baird set a $90.00 price objective on shares of Netflix and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Phillip Securities lowered shares of Netflix from a "strong-buy" rating to a "moderate buy" rating in a report on Friday. Moffett Nathanson reiterated a "buy" rating and issued a $90.00 target price on shares of Netflix in a research note on Wednesday, October 21st. CLSA began coverage on shares of Netflix in a report on Monday, July 20th. They issued an "outperform" rating for the company. Finally, Wedbush cut their price target on shares of Netflix from $105.00 to $90.00 and set an "outperform" rating for the company in a report on Friday, October 16th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $89.59.

About Netflix

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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