Netflix, Inc. $NFLX Shares Sold by State of Alaska Department of Revenue

Key Points

• State of Alaska Department of Revenue reduced its Netflix position by 4.1% in the third quarter, selling 18,147 shares and retaining 422,839 shares valued at approximately $29.4 million.
• Institutional investors and hedge funds own 80.93% of Netflix, while insiders have sold about 179,045 shares worth $13.1 million over the past 90 days.
• Netflix faces mixed investor signals ahead of its October 20 earnings report: analysts maintain a consensus “Moderate Buy” rating, but weaker engagement, rising churn and planned workforce cuts add pressure despite potential support from pricing increases, advertising and new content leadership.

State of Alaska Department of Revenue lowered its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 4.1% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 422,839 shares of the Internet television network's stock after selling 18,147 shares during the period. State of Alaska Department of Revenue's holdings in Netflix were worth $29,420,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of NFLX. BlackRock Inc. acquired a new position in 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 worth $12,861,252,000 after purchasing an additional 8,474,820 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of 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 worth $5,571,201,000 after purchasing an additional 2,376,349 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Netflix by 835.9% during the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock worth $4,075,062,000 after purchasing an additional 38,818,947 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Netflix during the second quarter worth $1,906,482,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, CFO Spencer Neumann sold 9,248 shares of Netflix 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 completion of the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $5,592,316.73. This trade represents a 11.14% 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 the SEC website. Also, Director Richard Barton sold 2,160 shares of Netflix stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the sale, the director owned 246 shares of the company's stock, valued at approximately $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 179,045 shares of company stock valued at $13,132,194 over the last 90 days. Corporate insiders own 1.24% of the company's stock.

Key Stories Impacting Netflix

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

Netflix Stock Up 2.9%

NASDAQ NFLX opened at $72.61 on Friday. The stock has a fifty day moving average of $75.25 and a 200-day moving average of $80.73. The stock 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, Inc. has a 52 week low of $65.08 and a 52 week high of $124.86. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX - Get Free Report) last released its 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 return on equity of 40.02% and a net margin of 28.22%. The company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter in the previous year, the company posted $0.72 earnings per share. The firm's quarterly revenue was up 13.4% on a year-over-year basis. On average, equities research analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Upgrades and Downgrades

NFLX has been the subject of a number of research reports. Oppenheimer set a $85.00 target price on Netflix and gave the company an "outperform" rating in a research note on Friday, July 17th. Wedbush reduced their price target on shares of Netflix from $118.00 to $105.00 and set an "outperform" rating on the stock in a research report on Friday, July 17th. UBS Group reduced their price target on shares of Netflix from $130.00 to $115.00 and set a "buy" rating on the stock in a research report on Friday, July 17th. Wells Fargo & Company lowered shares of Netflix from a "neutral" rating to an "underweight" rating and decreased their price objective for the stock from $80.00 to $57.00 in a report on Friday, September 18th. Finally, Huber Research cut shares of Netflix from a "buy" rating to an "underweight" rating in a research report on Tuesday. Three investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Netflix has an average rating of "Moderate Buy" and an average price target of $94.41.

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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