Netflix, Inc. $NFLX Stock: Banque Pictet & Cie SA Raises Holdings

Key Points

• Banque Pictet & Cie SA increased its Netflix stake by 38.1% in the third quarter, bringing its holdings to 614,251 shares valued at approximately $42.7 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix reported quarterly earnings of $0.80 per share, slightly above analyst expectations, while revenue rose 13.4% year over year to $12.56 billion. Analysts hold a “Moderate Buy” consensus rating with an average price target of $93.82.
• Insiders have been selling shares, including CEO Gregory Peters, while Netflix faces concerns over slowing engagement, workforce reductions and a change in its content leadership. Recent analyst views remain generally positive, though several firms have lowered their price targets.

Banque Pictet & Cie SA increased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 38.1% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 614,251 shares of the Internet television network's stock after purchasing an additional 169,440 shares during the period. Banque Pictet & Cie SA's holdings in Netflix were worth $42,740,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the business. Nykredit A S purchased a new position in Netflix during the second quarter worth about $105,697,000. Rockland Trust Co. grew its holdings in shares of Netflix by 27.5% during the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock worth $15,253,000 after purchasing an additional 47,339 shares in the last quarter. Ritholtz Wealth Management raised its position in shares of Netflix by 25.0% during the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network's stock valued at $10,235,000 after buying an additional 21,260 shares in the last quarter. Welch & Forbes LLC grew its position in Netflix by 3,464.5% in the first quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network's stock worth $11,389,000 after acquiring an additional 115,125 shares in the last quarter. Finally, USS Investment Management Ltd grew its position in Netflix by 31.8% in the first quarter. USS Investment Management Ltd now owns 886,527 shares of the Internet television network's stock worth $85,244,000 after acquiring an additional 213,972 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $70.53 on Friday. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $124.86. The stock has a market capitalization of $293.68 billion, a P/E ratio of 27.43, a P/E/G ratio of 1.02 and a beta of 1.62. The company's 50-day moving average is $75.17 and its 200 day moving average is $80.66. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the prior year, the firm earned $0.72 EPS. The company's revenue was up 13.4% compared to the same quarter last year. On average, sell-side analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity

In other news, CEO Gregory Peters sold 27,312 shares of the stock in a transaction 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 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Richard Barton sold 2,160 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the transaction, the director owned 246 shares in the company, valued at approximately $18,474.60. This trade represents a 89.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies upgraded Netflix (NFLX) to “strong buy,” citing potential support from pricing increases and advertising growth. Wedbush also maintained an “outperform” rating, although it lowered its price target to $90 from $105. Netflix stock gets bullish analyst call
• Positive Sentiment: Options activity is signaling expectations for a substantial post-earnings move, while sentiment remains bullish in some derivatives markets. Technical analysts also see a possible double-bottom pattern, with a break above $83.60 potentially opening a path toward $102.12. Barchart Netflix earnings outlook
• Neutral Sentiment: Netflix is replacing Chief Content Officer Bela Bajaria with former Disney and Fox executive Peter Rice. His experience across scripted programming, live sports, unscripted content and theatrical distribution could help Netflix develop new hits, but the abrupt change before earnings highlights pressure to improve engagement. Netflix appoints Peter Rice
• Negative Sentiment: Netflix announced plans to eliminate about 1,000 jobs, or 6% of its workforce, one day before the content-chief transition. Although the cuts may improve efficiency, investors viewed them as evidence of a sharper growth reset and concerns about the company’s content strategy. Netflix shares under pressure after content chief departure
• Negative Sentiment: Pre-earnings concerns include slowing viewership, rising churn, declining engagement and intensifying competition. Analysts also warn that Netflix’s premium valuation leaves little room for disappointing guidance, while options traders anticipate a move that could take the stock toward a two-year low. Netflix Q3 earnings outlook

Analyst Ratings Changes

NFLX has been the subject of several research analyst reports. Itau BBA Securities dropped their price target on Netflix from $151.40 to $96.00 and set an "outperform" rating for the company in a research note on Wednesday, August 5th. Loop Capital reduced their price objective on Netflix from $115.00 to $95.00 and set a "buy" rating on the stock in a research report on Friday, July 24th. CICC Research reduced their price objective on Netflix from $110.00 to $90.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 21st. Guggenheim reissued a "buy" rating and set a $80.00 price objective (up from $75.00) on shares of Netflix in a report on Thursday, October 1st. Finally, Stephens started coverage on Netflix in a research note on Friday, July 17th. They issued an "overweight" rating for the company. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $93.82.

Netflix Company Profile

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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