Netflix, Inc. $NFLX Stake Trimmed by Candriam S.C.A.

Key Points

• Candriam S.C.A. cut its Netflix stake by 14.2% in the third quarter, selling 69,049 shares and retaining 417,515 shares valued at about $29.2 million.
• Netflix reported quarterly earnings of $0.87 per share, above the $0.82 consensus estimate, while revenue rose 11.9% year over year to $12.87 billion.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $89.14; the article also described the stock as trading close to its 52-week low.

Candriam S.C.A. reduced its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 14.2% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 417,515 shares of the Internet television network's stock after selling 69,049 shares during the quarter. Candriam S.C.A.'s holdings in Netflix were worth $29,157,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Clal Insurance Enterprises Holdings Ltd bought a new position in Netflix in the 2nd quarter worth $26,000. Pathway Financial Advisers LLC purchased a new stake in shares of Netflix in the 3rd quarter worth about $26,000. Sawyer & Company Inc bought a new stake in shares of Netflix during the 3rd quarter valued at about $27,000. Compound Global Advisors LLC bought a new stake in shares of Netflix during the 2nd quarter valued at about $29,000. Finally, Burnham & Co LLC purchased a new position in shares of Netflix during the second quarter valued at about $29,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Price Performance

NFLX stock opened at $63.41 on Monday. The stock has a market capitalization of $260.38 billion, a P/E ratio of 18.33, a P/E/G ratio of 0.93 and a beta of 1.62. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.07. Netflix, Inc. has a 1-year low of $61.39 and a 1-year high of $116.73. The business has a fifty day moving average price of $71.03 and a 200-day moving average price of $80.97.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating the consensus estimate of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The company had revenue of $12.87 billion for the quarter, compared to analysts' expectations of $12.87 billion. During the same period last year, the firm posted $0.59 earnings per share. Netflix's revenue was up 11.9% compared to the same quarter last year. Equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Bradford Smith sold 17,980 shares of the firm's stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $64.03, for a total transaction of $1,151,259.40. Following the sale, the director owned 79,690 shares of the company's stock, valued at $5,102,550.70. This trade represents a 18.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard Barton sold 720 shares of Netflix stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the sale, the director owned 2,460 shares of the company's stock, valued at $185,164.20. This represents a 22.64% 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. Over the last 90 days, insiders have sold 61,712 shares of company stock worth $4,051,144. 1.24% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on NFLX shares. Needham & Company LLC downgraded shares of Netflix from a "buy" rating to a "hold" rating in a research note on Wednesday, October 21st. Rosenblatt Securities set a $71.00 price objective on Netflix and gave the company a "neutral" rating in a research report on Wednesday, October 21st. Yorkville Ives began coverage on Netflix in a report on Monday, October 5th. They set an "in-line" rating and a $75.00 target price on the stock. Weiss Ratings downgraded Netflix from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, October 23rd. Finally, Loop Capital decreased their target price on Netflix from $115.00 to $95.00 and set a "buy" rating for the company in a research report on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and an average price target of $89.14.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered Other Worlds: A Stranger Things Adventure, a live-action prequel series. Extending a popular franchise could support viewer engagement, though the financial impact and timing are not yet clear. Article: Stranger Things prequel series
• Positive Sentiment: A valuation analysis argues NFLX could be undervalued, estimating about 23% upside to fair value. This offers a counterpoint to recent weakness, but is an analyst view rather than a company announcement. Article: Netflix stock fair-value analysis
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales, but the transactions were made to cover tax withholding on vested equity awards. That stated purpose makes them a less clear signal about management’s view of the stock. Article: Netflix insider share sales
• Negative Sentiment: Coverage noted NFLX slipping even with the new Stranger Things plans, suggesting the content announcement has not eased near-term selling pressure. The shares are also near their 52-week low and far below their 52-week high, reflecting a weak recent trend. Article: Netflix stock slips despite new Stranger Things plans

Netflix Profile

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.

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