Netflix, Inc. $NFLX Stake Trimmed by Covea Finance

Key Points

• Covea Finance has reduced its stake in Netflix by 8.4%, owning 54,951 shares valued at approximately $73.6 million, making it the firm's 7th largest position.
• Despite reductions by some investors, Vanguard Group and others have increased their holdings, with Vanguard now owning about $35.4 billion in Netflix shares.
• Netflix reported Q2 earnings of $7.19 per share, surpassing estimates, with revenue of $11.08 billion, reflecting a 15.9% year-over-year increase.

Covea Finance lowered its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 8.4% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 54,951 shares of the Internet television network's stock after selling 5,069 shares during the quarter. Netflix accounts for about 2.7% of Covea Finance's investment portfolio, making the stock its 7th largest position. Covea Finance's holdings in Netflix were worth $73,587,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. lifted its holdings in Netflix by 1.4% during the first quarter. Vanguard Group Inc. now owns 37,997,260 shares of the Internet television network's stock valued at $35,433,585,000 after purchasing an additional 509,255 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Netflix by 2.7% during the first quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock valued at $10,940,505,000 after purchasing an additional 304,399 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of Netflix by 109,524.3% in the first quarter. GAMMA Investing LLC now owns 8,835,722 shares of the Internet television network's stock worth $8,239,576,000 after buying an additional 8,827,662 shares in the last quarter. Alliancebernstein L.P. boosted its position in shares of Netflix by 1.0% during the first quarter. Alliancebernstein L.P. now owns 5,194,939 shares of the Internet television network's stock worth $4,844,436,000 after acquiring an additional 53,611 shares during the last quarter. Finally, Invesco Ltd. increased its holdings in Netflix by 8.3% in the 1st quarter. Invesco Ltd. now owns 4,664,818 shares of the Internet television network's stock valued at $4,350,083,000 after acquiring an additional 356,617 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix Stock Performance

Shares of NASDAQ:NFLX opened at $1,227.37 on Tuesday. The firm has a market cap of $521.55 billion, a PE ratio of 52.30, a price-to-earnings-growth ratio of 2.07 and a beta of 1.60. The firm's 50 day simple moving average is $1,211.80 and its 200-day simple moving average is $1,144.65. Netflix, Inc. has a one year low of $677.88 and a one year high of $1,341.15. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.34 and a current ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.07 by $0.12. The company had revenue of $11.08 billion for the quarter, compared to analyst estimates of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. Netflix's revenue was up 15.9% compared to the same quarter last year. During the same period last year, the company posted $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. As a group, equities analysts predict that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Buying and Selling at Netflix

In related news, CEO Theodore A. Sarandos sold 2,026 shares of Netflix stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,160.62, for a total transaction of $2,351,416.12. Following the transaction, the chief executive officer directly owned 15,168 shares of the company's stock, valued at $17,604,284.16. This trade represents a 11.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Gregory K. Peters sold 2,026 shares of Netflix stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the transaction, the chief executive officer directly owned 12,781 shares in the company, valued at approximately $14,793,240.64. The trade was a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 89,348 shares of company stock valued at $109,498,489. 1.37% of the stock is owned by corporate insiders.

Analyst Ratings Changes

NFLX has been the topic of a number of research reports. Phillip Securities downgraded shares of Netflix from a "hold" rating to a "strong sell" rating in a report on Monday, July 21st. Zacks Research downgraded shares of Netflix from a "strong-buy" rating to a "hold" rating in a report on Monday, September 1st. Piper Sandler lifted their price target on shares of Netflix from $1,400.00 to $1,500.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Morgan Stanley reiterated an "equal weight" rating on shares of Netflix in a report on Monday, July 21st. Finally, Rosenblatt Securities upped their price target on shares of Netflix from $1,514.00 to $1,515.00 and gave the company a "buy" rating in a research note on Friday, July 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $1,328.87.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.

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