Netflix, Inc. $NFLX Shares Sold by Community Financial Services Group LLC

Key Points

• Community Financial Services Group LLC cut its Netflix stake by 94.6% in the third quarter, selling 41,339 shares and retaining 2,370 shares valued at approximately $161,000.
• Institutional investors own 80.93% of Netflix, with major holders including State Street, Bank of America, Invesco and BlackRock; analysts maintain a “Moderate Buy” consensus with an average price target of $94.41.
• Netflix faces mixed near-term signals ahead of its October 20 earnings report: pricing, advertising and a new content chief may support growth, while workforce reductions, rising U.S. churn and weaker engagement raise concerns.

Community Financial Services Group LLC lessened its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 94.6% in the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 2,370 shares of the Internet television network's stock after selling 41,339 shares during the period. Community Financial Services Group LLC's holdings in Netflix were worth $161,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Netflix in the second quarter valued at approximately $24,902,221,000. State Street Corp raised its position in 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 purchasing an additional 8,474,820 shares in the last quarter. Bank of America Corp DE increased its position in shares of 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 purchasing an additional 2,376,349 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Netflix by 835.9% during the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock valued at $4,075,062,000 after buying an additional 38,818,947 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Netflix in the 2nd quarter worth approximately $1,906,482,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

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

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on NFLX. China Renaissance dropped their target price on Netflix from $100.00 to $80.00 and set a "hold" rating for the company in a report on Friday, July 17th. Morgan Stanley decreased their target price on Netflix from $83.00 to $80.00 and set an "overweight" rating for the company in a report on Thursday, October 8th. TD Cowen reaffirmed a "buy" rating and issued a $100.00 target price on shares of Netflix in a research report on Monday, October 5th. BMO Capital Markets restated an "outperform" rating on shares of Netflix in a report on Tuesday, September 22nd. Finally, New Street Research lifted their price target on Netflix from $96.00 to $102.00 and gave the company a "neutral" rating in a research report on Friday, July 17th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Netflix currently has an average rating of "Moderate Buy" and an average price target of $94.41.

Netflix Price Performance

NASDAQ NFLX opened at $72.61 on Friday. The stock has a market cap of $302.34 billion, a price-to-earnings ratio of 22.85, a PEG ratio of 1.00 and a beta of 1.62. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The company's 50 day moving average is $75.25 and its two-hundred day moving average is $80.73. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $124.86.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.72 EPS. As a group, research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity

In other news, Director Richard Barton sold 720 shares of the business's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the sale, the director directly owned 2,460 shares of the company's stock, valued at approximately $185,164.20. The trade was a 22.64% decrease in their ownership of the stock. 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, CFO Spencer Neumann sold 9,248 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares of the company's stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 179,045 shares of company stock worth $13,132,194 in the last three months. Corporate insiders own 1.24% of the company's stock.

Netflix Company Profile

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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