Netflix, Inc. $NFLX Stock: CenterBook Partners LP Decreases Holdings

Key Points

• CenterBook Partners cut its Netflix stake by 82.6% in the third quarter, selling 293,519 shares and retaining 61,628 shares valued at about $4.3 million.
• Institutional investors had mixed activity: several funds increased their holdings, and institutions and hedge funds collectively owned 80.93% of Netflix shares.
• Netflix beat quarterly EPS estimates and revenue rose 11.9% year over year, but the stock was trading near its 52-week low. Analysts’ consensus rating was “Moderate Buy,” with an average target price of $89.14.

CenterBook Partners LP reduced its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 82.6% in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 61,628 shares of the Internet television network's stock after selling 293,519 shares during the period. CenterBook Partners LP's holdings in Netflix were worth $4,288,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Canvas Wealth Advisors LLC raised its stake in Netflix by 23.2% during the third quarter. Canvas Wealth Advisors LLC now owns 8,176 shares of the Internet television network's stock worth $569,000 after buying an additional 1,541 shares during the last quarter. Asset One Wealth Management LLC boosted its position in Netflix by 50.4% during the third quarter. Asset One Wealth Management LLC now owns 73,059 shares of the Internet television network's stock valued at $5,083,000 after acquiring an additional 24,482 shares during the last quarter. International Assets Investment Management LLC boosted its position in Netflix by 4.0% during the third quarter. International Assets Investment Management LLC now owns 122,339 shares of the Internet television network's stock valued at $8,301,000 after acquiring an additional 4,656 shares during the last quarter. Heritage Family Offices LLP boosted its position in Netflix by 14.2% during the third quarter. Heritage Family Offices LLP now owns 6,784 shares of the Internet television network's stock valued at $472,000 after acquiring an additional 841 shares during the last quarter. Finally, Waldron Private Wealth LLC grew its holdings in Netflix by 2.5% during the 3rd quarter. Waldron Private Wealth LLC now owns 7,371 shares of the Internet television network's stock worth $513,000 after acquiring an additional 182 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

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

Analysts Set New Price Targets

NFLX has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft set a $93.00 price objective on Netflix in a research report on Wednesday, October 21st. Citigroup reissued a "buy" rating and issued a $85.00 price objective (down from $100.00) on shares of Netflix in a research note on Wednesday, October 21st. Yorkville Ives assumed coverage on Netflix in a research report on Monday, October 5th. They set an "in-line" rating and a $75.00 target price on the stock. New Street Research raised their target price on Netflix from $96.00 to $102.00 and gave the stock a "neutral" rating in a research note on Friday, July 17th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $78.00 target price (down from $85.00) on shares of Netflix in a report on Wednesday, October 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $89.14.

Insider Activity

In other news, CFO Spencer Neumann sold 9,253 shares of Netflix stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $66.15, for a total transaction of $612,085.95. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $4,881,010.05. The trade was a 11.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford Smith sold 17,980 shares of Netflix stock in a transaction dated Monday, October 26th. The stock was sold at an average price of $64.03, for a total transaction of $1,151,259.40. Following the completion of the sale, the director directly owned 79,690 shares in the company, valued at approximately $5,102,550.70. This represents a 18.41% 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 quarter, insiders sold 70,960 shares of company stock worth $4,752,050. 1.24% of the stock is owned by insiders.

Netflix Stock Performance

NFLX stock opened at $63.41 on Friday. The firm has a market cap of $260.38 billion, a PE ratio of 18.33, a P/E/G ratio of 0.93 and a beta of 1.62. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43. The business has a 50 day moving average of $71.03 and a 200-day moving average of $80.97. Netflix, Inc. has a 12-month low of $61.39 and a 12-month high of $116.73.

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

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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