Netflix, Inc. $NFLX Position Lifted by Daytona Street Capital LLC

Key Points

• Daytona Street Capital increased its Netflix position by 41.7% in the third quarter, adding 21,234 shares to hold 72,179 shares valued at approximately $4.87 million. Netflix now represents 3.3% of the firm’s portfolio.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $94.41, despite several recent target reductions. Netflix shares opened at $72.61, well below their 52-week high of $124.86.
• Netflix slightly exceeded quarterly EPS expectations while revenue rose 13.4% year over year, but insiders—including CEO Gregory Peters—sold shares, with insiders selling roughly $13.1 million worth of stock over the past 90 days.

Daytona Street Capital LLC raised its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 41.7% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 72,179 shares of the Internet television network's stock after acquiring an additional 21,234 shares during the period. Netflix makes up 3.3% of Daytona Street Capital LLC's portfolio, making the stock its 5th biggest position. Daytona Street Capital LLC's holdings in Netflix were worth $4,868,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in NFLX. Merkkuri Wealth Advisors LLC acquired a new position in shares of Netflix in the 1st quarter valued at about $31,000. Bayban grew its holdings in shares of Netflix by 400.0% during the 1st quarter. Bayban now owns 350 shares of the Internet television network's stock worth $34,000 after purchasing an additional 280 shares during the period. Clal Insurance Enterprises Holdings Ltd purchased a new stake in shares of Netflix during the 2nd quarter worth about $26,000. Bank of New Hampshire grew its holdings in shares of Netflix by 900.0% during the 4th quarter. Bank of New Hampshire now owns 380 shares of the Internet television network's stock worth $36,000 after purchasing an additional 342 shares during the period. Finally, Compound Global Advisors LLC acquired a new stake in Netflix during the 2nd quarter worth approximately $29,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

NFLX has been the topic of several research reports. Itau BBA Securities cut their price target on shares of Netflix from $151.40 to $96.00 and set an "outperform" rating on the stock in a report on Wednesday, August 5th. DZ Bank reiterated a "buy" rating on shares of Netflix in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft raised shares of Netflix from a "hold" rating to a "buy" rating and dropped their price objective for the stock from $100.00 to $95.00 in a research report on Tuesday, September 29th. Barclays set a $70.00 price objective on shares of Netflix and gave the stock an "equal weight" rating in a research report on Wednesday, October 7th. Finally, CICC Research cut their target price on shares of Netflix from $110.00 to $90.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 21st. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Netflix currently has a consensus rating of "Moderate Buy" and a consensus price target of $94.41.

Netflix Stock Performance

NASDAQ:NFLX opened at $72.61 on Friday. The firm has a 50-day moving average of $75.25 and a two-hundred day moving average of $80.73. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The stock has a market cap of $302.34 billion, a P/E ratio of 22.85, a PEG ratio of 1.00 and a beta of 1.62. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $124.86.

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, topping analysts' consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The business had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the company earned $0.72 earnings per share. The company's revenue for the quarter was up 13.4% compared to the same quarter last year. On average, research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and an $85 price target, citing potential revenue support from subscription-price increases and advertising. Netflix stock gets bullish analyst call ahead of next week's earnings
• Positive Sentiment: Netflix named former Disney and Fox executive Peter Rice as chief content officer, replacing Bela Bajaria. Rice’s experience could help Netflix improve its content strategy and viewer engagement as competition intensifies. Netflix names former Disney executive Rice as new content chief
• Neutral Sentiment: Netflix will release third-quarter results on October 20. Wall Street estimates for revenue, earnings and operating metrics may drive volatility as investors look for evidence that pricing, advertising and content investments are offsetting weaker engagement. Ahead of Netflix Q3 earnings
• Negative Sentiment: Netflix is eliminating roughly 1,000 positions, or 6% of its workforce, its largest reduction since 2022. Management described the move as a resource-allocation and efficiency effort, but investors may view it as evidence of slowing growth and pressure to control costs. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Reports citing app data indicate U.S. churn has risen and viewing engagement has weakened. Those trends raise questions about Netflix’s ability to retain subscribers amid competition from other streaming services, YouTube and creator-led video. Netflix warning signs ahead of Q3 earnings

Insiders Place Their Bets

In related news, insider David 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 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Peters sold 27,312 shares of the firm's stock in a transaction that occurred on 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 sale, 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 SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 179,045 shares of company stock valued at $13,132,194. Insiders own 1.24% of the company's stock.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.

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