Netflix, Inc. $NFLX Shares Sold by Jennison Associates LLC

Key Points

• Jennison Associates LLC cut its Netflix stake by 19.7% in the first quarter, selling 6.88 million shares and leaving it with about 27.99 million shares valued at roughly $2.69 billion.
• Netflix reported better-than-expected quarterly earnings, with EPS of $0.80 versus $0.79 expected, and revenue rose 13.4% year over year to $12.56 billion.
• Despite the solid quarter, the stock has faced pressure: shares were trading near $68.95, well below the 52-week high, while analysts currently hold a Moderate Buy consensus with an average target price of $103.97.

Jennison Associates LLC reduced its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 19.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 27,996,134 shares of the Internet television network's stock after selling 6,875,817 shares during the quarter. Netflix comprises approximately 1.9% of Jennison Associates LLC's portfolio, making the stock its 13th biggest holding. Jennison Associates LLC owned approximately 0.66% of Netflix worth $2,691,828,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also made changes to their positions in the stock. First Financial Corp IN grew its holdings in shares of Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock worth $25,000 after buying an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. lifted its stake in shares of Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after buying an additional 239 shares during the period. Turning Point Benefit Group Inc. boosted its position in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock worth $25,000 after acquiring an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new stake in Netflix during the third quarter worth approximately $25,000. Finally, Cornerstone Financial Management LLC acquired a new stake in Netflix during the fourth quarter worth approximately $26,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Stock Performance

Shares of NFLX stock opened at $68.95 on Friday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The firm has a market capitalization of $290.33 billion, a price-to-earnings ratio of 21.70, a price-to-earnings-growth ratio of 0.88 and a beta of 1.52. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The company has a 50 day moving average price of $80.15 and a 200 day moving average price of $86.90.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.83%. The company had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter last year, the business earned $0.72 EPS. Netflix's revenue for the quarter was up 13.4% on a year-over-year basis. Sell-side analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current year.

Insiders Place Their Bets

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the completion of the sale, the chief executive officer owned 120,931 shares of the company's stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the company's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the sale, the director owned 79,690 shares of the company's stock, valued at $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 899,839 shares of company stock worth $80,141,661. Corporate insiders own 1.24% of the company's stock.

Analysts Set New Price Targets

Several research analysts have weighed in on NFLX shares. Deutsche Bank Aktiengesellschaft boosted their price target on Netflix from $98.00 to $100.00 and gave the company a "hold" rating in a report on Tuesday, April 14th. TD Cowen decreased their price objective on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a report on Friday. Citigroup reaffirmed a "buy" rating and issued a $100.00 price objective (down from $115.00) on shares of Netflix in a research report on Thursday, July 9th. Wells Fargo & Company set a $80.00 price objective on Netflix and gave the company an "equal weight" rating in a research report on Friday. Finally, Sanford C. Bernstein set a $95.00 target price on Netflix and gave the company an "outperform" rating in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and sixteen have assigned a Hold rating to the stock. According to MarketBeat, Netflix presently has an average rating of "Moderate Buy" and a consensus target price of $103.97.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts remain bullish, arguing Netflix still has strong long-term upside from margin expansion, advertising growth, and new engagement-driven content formats. Mark Mahaney Reiterates Buy on Netflix
• Positive Sentiment: Supportive commentary highlighted Netflix’s AI, ads, short-form video, and gaming strategy as potential growth catalysts for monetization and engagement. Ad Engagement & Content Opportunities Offer Bullish Edge for NFLX
• Neutral Sentiment: Several analysts cut price targets but mostly kept buy/overweight or hold ratings, signaling lower near-term expectations rather than a full thesis break. Laura Martin Maintains Buy on Netflix
• Negative Sentiment: Netflix’s weaker Q3 outlook and reduced engagement disclosure sparked concern that growth is slowing and management is becoming less transparent with investors. Netflix third-quarter earnings forecast falls shy of Wall Street expectations
• Negative Sentiment: Coverage across the market emphasized the post-earnings selloff, citing a revenue miss, soft guidance, and investor worries about future growth and competition. U.S. Chip Stocks Extend Slide; Netflix Tumbles on Growth Warning

Netflix Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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