Netflix, Inc. $NFLX Stock: MGO One Seven LLC Decreases Holdings

Key Points

• MGO One Seven LLC cut its Netflix stake by 33.8% in the third quarter, selling 57,777 shares and retaining 113,238 shares valued at approximately $7.9 million. Institutional investors and hedge funds collectively own 80.93% of NFLX.
• Netflix reported quarterly EPS of $0.87, beating the $0.82 consensus, while revenue increased 11.9% year over year to $12.87 billion. However, the stock opened at $62.08, near its 12-month low of $61.39.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $89.14, but several firms recently lowered their targets. Recent insider selling and concerns about slowing growth, intensifying competition, and Netflix’s developing advertising business remain risks.

MGO One Seven LLC trimmed its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 33.8% during the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 113,238 shares of the Internet television network's stock after selling 57,777 shares during the quarter. MGO One Seven LLC's holdings in Netflix were worth $7,879,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in NFLX. Clal Insurance Enterprises Holdings Ltd purchased a new position in Netflix during the second quarter valued at approximately $26,000. Sawyer & Company Inc purchased a new stake in Netflix in the 3rd quarter worth approximately $27,000. Compound Global Advisors LLC purchased a new stake in Netflix in the 2nd quarter worth approximately $29,000. Burnham & Co LLC purchased a new stake in Netflix in the 2nd quarter worth approximately $29,000. Finally, Leo H. Evart Inc. grew its stake in shares of Netflix by 417.6% during the 2nd quarter. Leo H. Evart Inc. now owns 471 shares of the Internet television network's stock worth $34,000 after purchasing an additional 380 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Stock Performance

NFLX stock opened at $62.08 on Monday. Netflix, Inc. has a 12-month low of $61.39 and a 12-month high of $116.73. The business's 50-day moving average is $72.67 and its 200 day moving average is $81.57. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. The stock has a market cap of $254.92 billion, a price-to-earnings ratio of 17.94, a PEG ratio of 0.91 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating 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 during the quarter, compared to analysts' expectations of $12.87 billion. During the same quarter in the prior year, the firm earned $0.59 earnings per share. The business's revenue was up 11.9% compared to the same quarter last year. On average, sell-side analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix repurchased approximately $4.8 billion of stock in the third quarter, signaling that management views the shares as undervalued. The company’s scale, strong margins and ability to spread content costs across a large subscriber base also support the bullish case. Netflix Spent $4.8 Billion Buying Back Stock in 1 Quarter
• Positive Sentiment: Netflix’s latest quarterly earnings exceeded expectations, with earnings per share of $0.87 versus an $0.82 consensus estimate. Revenue rose 11.9% year over year and the company reported a 29.69% net margin, highlighting continued financial strength.
• Neutral Sentiment: Analyst comparisons with Amazon and Walt Disney acknowledge Netflix’s valuable entertainment position, but suggest Amazon’s diversified ecosystem, Prime Video reach and advertising tools—or Disney’s broader media assets—may offer greater upside. Amazon vs. Netflix: Which Stock Is the Better Entertainment Play?
• Neutral Sentiment: Netflix is experimenting with live events and other ways to capture viewers’ attention, while reportedly walking away from an Xbox licensing deal. These strategic moves could create new growth opportunities, but their financial impact remains uncertain. The Battle That May Matter Most for Netflix Stock
• Negative Sentiment: Revenue growth has slowed for three consecutive quarters, and investors remain concerned about disappointing guidance. Reuters reports that the stock has lost about one-third of its value this year as the market reassesses Netflix’s growth outlook. Mapping the Market: More losses in store for Netflix shares?
• Negative Sentiment: Competition for living-room viewing and advertising is intensifying. YouTube’s television advertising business reportedly generated more in one quarter than Netflix’s full-year advertising forecast, raising concerns about Netflix’s ability to scale its newer ad-supported business. YouTube's Living-Room Business
• Negative Sentiment: Reports that members are watching less, along with criticism that Netflix’s content-discovery experience is weakening its historical selling point, are fueling worries about engagement, retention and future subscriber growth. Insider selling has added another negative signal. Netflix Can't Lift, Jim Cramer Says

Insider Activity at Netflix

In other news, Director Richard N. Barton sold 720 shares of the firm's stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the transaction, the director directly owned 2,460 shares of the company's stock, valued at approximately $185,164.20. This trade represents a 22.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 17,980 shares of the business's 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 transaction, the director owned 79,690 shares in the company, valued at $5,102,550.70. The trade was a 18.41% 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. Insiders have sold a total of 91,175 shares of company stock worth $6,553,228 over the last 90 days. Corporate insiders own 1.24% of the company's stock.

Analyst Upgrades and Downgrades

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, October 23rd. BMO Capital Markets reiterated an "outperform" rating and issued a $125.00 target price (down from $135.00) on shares of Netflix in a research note on Friday, October 16th. Wedbush lowered their price target on shares of Netflix from $105.00 to $90.00 and set an "outperform" rating on the stock in a report on Friday, October 16th. Piper Sandler reissued an "overweight" rating and set a $78.00 price target (down from $85.00) on shares of Netflix in a report on Wednesday, October 21st. Finally, Jefferies Financial Group set a $85.00 price target on shares of Netflix and gave the company a "buy" rating in a research report on Thursday, October 15th. Two equities research 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 issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $89.14.

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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