Netflix, Inc. $NFLX Stock: Apollon Wealth Management LLC Reduces Position

Key Points

• Apollon Wealth Management cut its Netflix position by 12.7% in the third quarter, selling 49,962 shares and retaining 344,290 shares valued at approximately $23.96 million.
• Institutional investors own about 80.93% of Netflix, while analyst sentiment remains “Moderate Buy,” with an average price target of $89.59 despite several recent target reductions.
• Netflix exceeded quarterly earnings expectations with EPS of $0.87 and revenue of $12.87 billion, but the stock has fallen near its one-year low amid concerns over weaker advertising, free-cash-flow guidance, and slowing engagement.

Apollon Wealth Management LLC trimmed its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 12.7% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 344,290 shares of the Internet television network's stock after selling 49,962 shares during the quarter. Apollon Wealth Management LLC's holdings in Netflix were worth $23,956,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. American Capital Advisory LLC boosted its holdings in Netflix by 0.8% in the first quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network's stock valued at $1,345,000 after purchasing an additional 109 shares during the last quarter. CWS Financial Advisors LLC lifted its holdings in Netflix by 3.2% in the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network's stock valued at $347,000 after acquiring an additional 112 shares during the period. Warner Group LLC boosted its position in Netflix by 2.2% in the 1st quarter. Warner Group LLC now owns 5,230 shares of the Internet television network's stock worth $503,000 after purchasing an additional 114 shares in the last quarter. Financial Avengers Inc. boosted its position in Netflix by 9.8% in the 1st quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network's stock worth $124,000 after purchasing an additional 115 shares in the last quarter. Finally, PAX Financial Group LLC boosted its position in Netflix by 2.5% in the 1st quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network's stock worth $466,000 after purchasing an additional 116 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on NFLX. Weiss Ratings lowered shares of Netflix from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday. Piper Sandler reiterated an "overweight" rating and issued a $78.00 target price (down from $85.00) on shares of Netflix in a research note on Wednesday. Barclays set a $65.00 price objective on shares of Netflix and gave the stock an "equal weight" rating in a research report on Wednesday. Jefferies Financial Group set a $85.00 target price on shares of Netflix and gave the stock a "buy" rating in a research note on Thursday, October 15th. Finally, China Intl Cap upgraded Netflix to a "strong-buy" rating in a research report on Tuesday, July 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. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $89.59.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix reported third-quarter EPS of $0.87, ahead of the $0.82 consensus estimate, while revenue reached $12.87 billion. Operating margin rose to 34.6%, supporting the argument that the core streaming business remains highly profitable. Can Netflix Stock Hold Margin Gains as Content Spending Keeps Growing?
• Positive Sentiment: Longer-term bulls argue that Netflix’s profitability, systematic share repurchases, local-language content, and continued subscriber retention could create meaningful upside after the sell-off. Bill Ackman has also returned to the stock and expects annualized returns above 20%. Bill Ackman Lost $400 Million on Netflix
• Positive Sentiment: Ark Invest’s Cathie Wood bought 18,000 Netflix shares, signaling that some growth-oriented investors view the two-year-low valuation as an opportunity. Cathie Wood Just Bought Netflix Stock
• Neutral Sentiment: Netflix is reportedly planning layoffs at its Bay Area headquarters. The cuts could reduce costs, but they also raise questions about operating priorities and employee productivity. Netflix Stock Slips as Layoffs Hit Bay Area Headquarters
• Neutral Sentiment: Paramount Skydance’s completed merger highlights intensifying competition for scale and content across the entertainment industry, potentially increasing pressure on Netflix to sustain its content advantage. Could Skydance Be Bigger Than Disney?
• Negative Sentiment: Management reduced its 2026 advertising-revenue outlook to approximately $2.7 billion from about $3 billion. Softer ad growth undermines a major part of Netflix’s expansion thesis and overshadowed the earnings beat. Netflix Cut Its 2026 Ad Forecast by $300 Million
• Negative Sentiment: Disappointing fourth-quarter revenue guidance and decelerating growth have led investors to discount the strong quarterly results. Netflix’s reduced 2026 free-cash-flow outlook is another concern as content spending continues to rise. Netflix Has Lower FCF Guidance
• Negative Sentiment: Several analysts lowered their price targets or ratings after the report. One fair-value estimate fell from $92.62 to $86.24, while UBS, Guggenheim, and Needham adopted more cautious views. Netflix Stock Fair Value Falls After Cautious Q3 Analyst Revisions
• Negative Sentiment: Reports indicate viewing time is declining even though subscribers are staying, suggesting weaker engagement. YouTube and lower-cost streaming alternatives may also be contributing to slower revenue growth. Netflix Is Losing Viewers

Insider Activity

In related news, insider David Hyman sold 5,723 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the transaction, the insider directly owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This trade represents a 1.78% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore Sarandos sold 105,850 shares of the firm's stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at $15,063,605.98. This represents 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. Over the last 90 days, insiders have sold 179,045 shares of company stock worth $13,132,194. Company insiders own 1.24% of the company's stock.

Netflix Price Performance

Netflix stock opened at $65.85 on Monday. The stock has a market capitalization of $270.40 billion, a P/E ratio of 19.03, a P/E/G ratio of 0.96 and a beta of 1.62. The company's fifty day moving average price is $74.27 and its 200 day moving average price is $79.50. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07. Netflix, Inc. has a 1 year low of $64.10 and a 1 year high of $116.73.

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

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.

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