Netflix, Inc. $NFLX Stock: Allspring Global Investments Holdings LLC Trims Stake

Key Points

• Allspring Global Investments cut its Netflix stake by 22.8% in the third quarter, selling 470,654 shares and retaining 1.59 million shares valued at about $108 million. Institutional investors collectively own 80.93% of the stock.
• Netflix reported quarterly earnings of $0.87 per share, beating the $0.82 estimate; revenue of $12.87 billion matched expectations and rose 11.9% year over year.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $89.14. Recent target changes included Bank of America lowering its target to $90 and Pivotal Research cutting its target to $65.

Allspring Global Investments Holdings LLC reduced its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 22.8% during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,591,351 shares of the Internet television network's stock after selling 470,654 shares during the quarter. Allspring Global Investments Holdings LLC's holdings in Netflix were worth $107,973,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in NFLX. Nykredit A S bought a new position in Netflix during the second quarter valued at $105,697,000. Rockland Trust Co. raised its stake in shares of Netflix by 27.5% in the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock valued at $15,253,000 after acquiring an additional 47,339 shares during the period. Boomfish Wealth Group LLC lifted its holdings in shares of Netflix by 91.5% in the 3rd quarter. Boomfish Wealth Group LLC now owns 34,547 shares of the Internet television network's stock worth $2,404,000 after acquiring an additional 16,510 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Netflix in the 2nd quarter worth about $37,743,000. Finally, Sarasin & Partners LLP boosted its stake in shares of Netflix by 10.5% during the 2nd quarter. Sarasin & Partners LLP now owns 2,736,198 shares of the Internet television network's stock worth $195,365,000 after purchasing an additional 259,794 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix Stock Up 0.9%

NASDAQ:NFLX opened at $63.95 on Tuesday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. Netflix, Inc. has a twelve month low of $61.39 and a twelve month high of $116.73. The company has a market cap of $262.60 billion, a PE ratio of 18.48, a P/E/G ratio of 0.97 and a beta of 1.62. The company's 50 day moving average is $70.68 and its two-hundred day moving average is $80.86.

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

Insider Transactions at Netflix

In related news, CEO Theodore Sarandos sold 27,312 shares of Netflix stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $66.20, for a total transaction of $1,808,054.40. Following the completion of the sale, the chief executive officer owned 178,954 shares of the company's stock, valued at $11,846,754.80. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard Barton sold 720 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the sale, the director owned 2,460 shares in the company, valued at approximately $185,164.20. This represents a 22.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 61,712 shares of company stock valued at $4,051,144. 1.24% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several equities analysts recently commented on NFLX shares. Bank of America cut their price target on shares of Netflix from $105.00 to $90.00 and set a "buy" rating on the stock in a report on Wednesday, October 21st. Huber Research cut Netflix from a "buy" rating to an "underweight" rating in a report on Tuesday, October 13th. William Blair reissued an "outperform" rating on shares of Netflix in a research report on Wednesday, October 21st. Seaport Research Partners set a $85.00 target price on shares of Netflix in a report on Wednesday, October 21st. Finally, Pivotal Research reissued a "hold" rating and set a $65.00 price objective (down from $70.00) on shares of Netflix in a report on Wednesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average price target of $89.14.

About Netflix

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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