Netflix, Inc. $NFLX Stake Lifted by Quintet Private Bank Europe S.A.

Key Points

• Quintet Private Bank Europe increased its Netflix stake by 50% in the third quarter, acquiring 128,555 additional shares. The fund now owns 385,704 shares valued at approximately $26.8 million, while institutional investors collectively hold 80.93% of Netflix.
• Netflix reported 13.4% year-over-year revenue growth and slightly exceeded quarterly EPS estimates, but investors remain focused on moderating growth, rising content costs and competition.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $94.70. However, company co-CEOs recently sold shares under disclosed transactions, including sales tied to tax obligations.

Quintet Private Bank Europe S.A. boosted its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 50.0% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 385,704 shares of the Internet television network's stock after buying an additional 128,555 shares during the quarter. Netflix makes up about 1.2% of Quintet Private Bank Europe S.A.'s holdings, making the stock its 20th largest position. Quintet Private Bank Europe S.A.'s holdings in Netflix were worth $26,837,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of NFLX. Nykredit A S purchased a new position in Netflix during the second quarter valued at $105,697,000. Rockland Trust Co. grew its holdings in Netflix by 27.5% during the 3rd quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock valued at $15,253,000 after buying an additional 47,339 shares in the last quarter. University of Texas Texas AM Investment Management Co. increased its holdings in Netflix by 798.5% in the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network's stock valued at $3,989,000 after acquiring an additional 37,807 shares during the last quarter. Ritholtz Wealth Management lifted its position in shares of Netflix by 25.0% in the first quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network's stock worth $10,235,000 after buying an additional 21,260 shares in the last quarter. Finally, Wittenberg Investment Management Inc. raised its holdings in shares of Netflix by 889.8% during the 4th quarter. Wittenberg Investment Management Inc. now owns 14,530 shares of the Internet television network's stock worth $1,362,000 after acquiring an additional 13,062 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Warner Bros.-Paramount merger may give Netflix breathing room. The newly combined media company creates a larger rival, but it also carries roughly $80 billion in debt and faces significant integration and cost-reduction demands. Investors may expect those financial pressures to limit its ability to aggressively fund streaming content. Netflix Gains Breathing Room as a Major Studio Merger Closes
• Positive Sentiment: Netflix reportedly received $2.8 billion from Paramount to abandon its Warner Bros. bid. The payment reinforces Netflix’s financial flexibility and allowed the company to avoid taking on the substantial debt and execution risks associated with the acquisition. Paramount Paid Netflix to Walk Away From Warner Bros. Deal
• Positive Sentiment: Analyst and growth-driver optimism supported the stock. Morgan Stanley maintained an Overweight rating, although it reduced its price target to $80 from $83. Articles point to advertising and other less-appreciated businesses as possible catalysts, while a third-quarter preview describes the shares as attractively valued. Netflix Q3 Preview
• Neutral Sentiment: Disney’s content licensing highlights Netflix’s scale. Disney licensing titles to Netflix suggests traditional media companies continue to view the platform as an important distribution channel, though the arrangements could also increase Netflix’s content expenses. Disney Is Opening the Door to Netflix
• Negative Sentiment: Investors remain concerned about maturing growth and profitability. Netflix’s latest revenue growth was 13.4%, with management expecting further moderation, while rising content and live-sports rights costs could pressure margins. Analysts also cite competition and valuation risks despite the stock’s decline this year. Netflix Stock Plunges Year to Date

Insider Buying and Selling

In other news, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 179,045 shares of company stock valued at $13,132,194 in the last ninety days. Company insiders own 1.24% of the company's stock.

Netflix Stock Performance

NFLX traded up $1.50 during midday trading on Thursday, hitting $71.20. 16,379,282 shares of the company were exchanged, compared to its average volume of 42,359,414. The company's 50 day simple moving average is $75.52 and its 200 day simple moving average is $81.64. 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 firm has a market capitalization of $296.46 billion, a price-to-earnings ratio of 22.46, a price-to-earnings-growth ratio of 0.97 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 quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating 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 period in the previous year, the company posted $0.72 earnings per share. Netflix's revenue for the quarter was up 13.4% on a year-over-year basis. As a group, sell-side analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of analyst reports. Morgan Stanley lowered their price target on shares of Netflix from $83.00 to $80.00 and set an "overweight" rating for the company in a report on Thursday. DZ Bank reiterated a "buy" rating on shares of Netflix in a research report on Monday, July 20th. Barclays set a $70.00 price objective on Netflix and gave the stock an "equal weight" rating in a report on Wednesday. CLSA initiated coverage on shares of Netflix in a report on Monday, July 20th. They set an "outperform" rating on the stock. Finally, Jefferies Financial Group decreased their price target on shares of Netflix from $110.00 to $90.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $94.70.

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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