Netflix, Inc. $NFLX Holdings Lessened by Mcdonald Capital Investors Inc. CA

Key Points

• Mcdonald Capital Investors reduced its Netflix stake by 10.9% in the third quarter, selling 113,900 shares and retaining 932,397 shares valued at approximately $64.9 million.
• Institutional investors continue to dominate Netflix’s shareholder base, owning approximately 80.93% of outstanding shares; major holders including State Street and Bank of America increased their positions.
• Netflix exceeded third-quarter earnings expectations with $0.87 in EPS and $12.87 billion in revenue, but weaker growth guidance and engagement concerns prompted several analysts to lower price targets. The stock carries a “Moderate Buy” consensus rating with an average target of $89.14.

Mcdonald Capital Investors Inc. CA decreased its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 10.9% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 932,397 shares of the Internet television network's stock after selling 113,900 shares during the quarter. Netflix accounts for approximately 5.3% of Mcdonald Capital Investors Inc. CA's investment portfolio, making the stock its 10th largest holding. Mcdonald Capital Investors Inc. CA's holdings in Netflix were worth $64,876,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of the company. BlackRock Inc. purchased a new position in Netflix during the 2nd quarter worth approximately $24,902,221,000. State Street Corp lifted its stake in Netflix by 4.9% during the 2nd quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock valued at $12,861,252,000 after acquiring an additional 8,474,820 shares during the period. Bank of America Corp DE lifted its stake in Netflix by 4.3% during the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock valued at $5,571,201,000 after acquiring an additional 2,376,349 shares during the period. Bank of New York Mellon Corp acquired a new stake in Netflix during the 2nd quarter valued at approximately $1,906,482,000. Finally, Legal & General Group Plc purchased a new stake in shares of Netflix in the 2nd quarter valued at $1,886,526,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Insider Buying and Selling at Netflix

In related news, CEO Theodore A. Sarandos sold 105,850 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the transaction, the chief executive officer owned 206,266 shares in the company, valued at $15,063,605.98. This represents a 33.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the transaction, the chief executive officer owned 120,931 shares of the company's stock, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 197,025 shares of company stock valued at $14,283,453. Insiders own 1.24% of the company's stock.

Key Netflix News

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 of $12.87 billion matched forecasts and increased 11.9% year over year. Record margins and improving economics provide fundamental support for the shares. Netflix Just Posted a Record Margin. So Why Is Wall Street Panicking?
• Positive Sentiment: Some research argues that Netflix’s wider margins, international revenue growth and disciplined economics could create a long-term opportunity, even as near-term engagement metrics weaken. Netflix: Not Winning On Attention, Winning On Economics
• Neutral Sentiment: Director Bradford Smith sold 17,980 shares for approximately $1.15 million under a pre-arranged Rule 10b5-1 trading plan. The sale reduces his holdings by 18.4%, but the planned nature of the transaction limits its significance as a signal about management’s outlook. Netflix Director SEC Filing
• Negative Sentiment: The main catalyst for the selloff is weak fourth-quarter revenue guidance and an implied full-year growth rate of roughly 13%. Investors viewed the outlook as insufficient despite the EPS beat, while Netflix also reduced its 2026 advertising-revenue outlook to approximately $2 billion.
• Negative Sentiment: Concerns that Netflix is losing watch-hour share and cultural relevance have raised questions about its ability to sustain subscriber engagement in its mature U.S. market. Management acknowledged that U.S. engagement can improve, adding to worries about competition from short-form video and artificial intelligence. Netflix Stock Falls on Report That Viewers Watch Less
• Negative Sentiment: Wall Street analysts have lowered their assessments, with Needham moving Netflix to Hold, Wolfe Research to Peer Perform, and UBS, Piper Sandler and Rosenblatt trimming price targets. The downgrades reinforce the view that the stock’s prior valuation assumed faster growth. Needham Downgrades Netflix

Netflix Stock Performance

Netflix stock opened at $62.52 on Wednesday. The company's fifty day moving average price is $73.71 and its 200 day moving average price is $81.99. Netflix, Inc. has a 1 year low of $62.48 and a 1 year high of $116.73. The stock has a market capitalization of $256.73 billion, a P/E ratio of 18.07 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, topping the consensus estimate of $0.82 by $0.05. The company had revenue of $12.87 billion during the quarter, compared to analysts' expectations of $12.87 billion. Netflix's revenue was up 11.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.59 EPS. Sell-side analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Analysts Set New Price Targets

A number of research firms have recently weighed in on NFLX. Wedbush cut their price objective on shares of Netflix from $105.00 to $90.00 and set an "outperform" rating on the stock in a research note on Friday, October 16th. Sanford C. Bernstein reissued an "outperform" rating and set a $80.00 target price (down from $95.00) on shares of Netflix in a report on Wednesday, October 21st. Bank of America decreased their target price on shares of Netflix from $105.00 to $90.00 and set a "buy" rating for the company in a research report on Wednesday, October 21st. Wells Fargo & Company downgraded shares of Netflix from a "neutral" rating to an "underweight" rating and decreased their target price for the company from $80.00 to $57.00 in a research report on Friday, September 18th. Finally, Yorkville Ives initiated coverage on shares of Netflix in a report on Monday, October 5th. They issued an "in-line" rating and a $75.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $89.14.

Netflix Company 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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