Netflix, Inc. $NFLX Shares Sold by Guyasuta Investment Advisors Inc.

Key Points

• Guyasuta Investment Advisors cut its Netflix stake by 82.7% in the third quarter, selling 171,293 shares and retaining 35,760 shares valued at approximately $2.49 million.
• Institutional ownership remains high at 80.93%, with major investors including State Street and Bank of America increasing their positions. Analysts maintain a “Moderate Buy” consensus, with an average price target of $94.41.
• Netflix shares opened at $72.61, well below their 12-month high of $124.86. While quarterly revenue rose 13.4% year over year and earnings slightly exceeded estimates, upcoming results face scrutiny over subscriber churn, weaker engagement, pricing, advertising growth and cost-cutting efforts.

Guyasuta Investment Advisors Inc. decreased its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 82.7% in the third quarter, according to its most recent 13F filing with the SEC. The firm owned 35,760 shares of the Internet television network's stock after selling 171,293 shares during the period. Guyasuta Investment Advisors Inc.'s holdings in Netflix were worth $2,488,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in NFLX. BlackRock Inc. acquired a new stake in shares of Netflix in the second quarter worth $24,902,221,000. State Street Corp grew its holdings 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 in the last quarter. Bank of America Corp DE raised its position in Netflix by 4.3% during the first 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 buying an additional 2,376,349 shares during the period. Invesco Ltd. raised its position in Netflix by 835.9% during the fourth 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 during the period. Finally, Bank of New York Mellon Corp acquired a new position in Netflix during the second quarter valued at $1,906,482,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages recently issued reports on NFLX. Rothschild & Co Redburn reduced their price objective on Netflix from $120.00 to $93.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Weiss Ratings raised Netflix from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. China Renaissance lowered their target price on Netflix from $100.00 to $80.00 and set a "hold" rating on the stock in a research note on Friday, July 17th. China Intl Cap upgraded Netflix to a "strong-buy" rating in a report on Tuesday, July 21st. Finally, President Capital dropped their target price on Netflix from $134.00 to $83.00 and set a "buy" rating on the stock in a report on Monday, July 20th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average price target of $94.41.

Netflix News Roundup

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

Insider Activity

In other Netflix news, CFO Spencer Neumann sold 9,248 shares of the company's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. This represents a 11.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard N. Barton sold 720 shares of the company's stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the transaction, the director directly owned 2,460 shares in the company, valued at approximately $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. In the last quarter, 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 Trading Up 2.9%

Shares of NASDAQ:NFLX opened at $72.61 on Friday. The firm has a fifty day moving average of $75.25 and a two-hundred day moving average of $80.73. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $124.86. The firm has a market capitalization of $302.34 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.00 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the prior year, the business posted $0.72 earnings per share. Netflix's revenue for the quarter was up 13.4% compared to the same quarter last year. On average, equities analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Netflix 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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