Netflix, Inc. $NFLX Stock Purchased by Woodstock Corp

Key Points

• Woodstock Corp increased its Netflix stake by 45.3% in the third quarter, bringing its holdings to 137,867 shares valued at approximately $9.6 million. Hedge funds and institutional investors collectively own 80.93% of Netflix.
• Analysts remain broadly bullish, with a consensus rating of “Moderate Buy” and an average price target of $94.70, despite several firms recently lowering their targets.
• Netflix’s latest quarter showed 13.4% year-over-year revenue growth and earnings slightly above estimates, but insider selling and slowing growth in the U.S. and Canada remain potential concerns for investors.

Woodstock Corp lifted its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 45.3% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 137,867 shares of the Internet television network's stock after buying an additional 42,975 shares during the period. Woodstock Corp's holdings in Netflix were worth $9,593,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of the company. Vertrix Wealth Management LLC boosted its holdings in shares of Netflix by 292.8% in the third quarter. Vertrix Wealth Management LLC now owns 49,426 shares of the Internet television network's stock worth $3,439,000 after buying an additional 36,844 shares during the last quarter. JGP Wealth Management LLC grew its position in Netflix by 6.0% during the third quarter. JGP Wealth Management LLC now owns 8,526 shares of the Internet television network's stock valued at $593,000 after buying an additional 480 shares during the period. Integrated Financial Solutions Inc. grew its position in Netflix by 7.0% during the third quarter. Integrated Financial Solutions Inc. now owns 22,280 shares of the Internet television network's stock valued at $1,550,000 after buying an additional 1,460 shares during the period. HF Advisory Group LLC purchased a new stake in Netflix during the third quarter valued at approximately $749,000. Finally, Dupree Financial Group LLC increased its holdings in Netflix by 40.7% during the third quarter. Dupree Financial Group LLC now owns 4,418 shares of the Internet television network's stock valued at $307,000 after buying an additional 1,278 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the stock. Piper Sandler reissued an "overweight" rating and set a $85.00 price objective (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Itau BBA Securities decreased their target price on Netflix from $151.40 to $96.00 and set an "outperform" rating on the stock in a report on Wednesday, August 5th. China Intl Cap upgraded Netflix to a "strong-buy" rating in a research report on Tuesday, July 21st. Phillip Securities raised Netflix from a "moderate buy" rating to a "strong-buy" rating and set a $110.00 price target for the company in a report on Sunday, July 19th. Finally, BMO Capital Markets reaffirmed an "outperform" rating on shares of Netflix in a research note on Tuesday, September 22nd. Four investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $94.70.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s valuation has become more attractive after a roughly 40% decline over the past year. The shares trade at about 21.6–22 times earnings, well below the company’s historical average, while revenue continues to grow. Some investors view a strong earnings report or improved outlook as a potential catalyst. What Could Netflix Stock Be Worth In Three Years?
• Positive Sentiment: International markets continue to grow faster than Netflix’s U.S. and Canada segment, and one analyst expects the stock could rebound sharply after the October 20 earnings release. Netflix is also viewed favorably relative to the newly combined Skydance media competitor. Prediction: Netflix Stock Is Going to Soar After Oct. 20
• Neutral Sentiment: Investors are focused on whether Netflix can meet guidance for approximately 12% third-quarter revenue growth, with advertising performance, subscriber trends and management’s outlook likely to determine the next major move. Netflix’s Q3 Guidance Calls for About 12% Revenue Growth
• Neutral Sentiment: The appointment of Craig Ferguson to lead content acquisition could strengthen licensing and distribution decisions, but its financial impact is not yet clear. What Is Netflix Signaling With Its New Content Acquisition Chief?
• Negative Sentiment: Growth is slowing in Netflix’s largest region: U.S. and Canada generated about 43% of second-quarter revenue but grew only 10%, down from 18% two quarters earlier. Currency-neutral growth has also decelerated across international regions, challenging the argument that overseas expansion alone makes the stock a bargain. Netflix’s Regions Abroad Are Growing Faster Than Its Home Market
• Negative Sentiment: Reports that Netflix may cut about 5% of its workforce signal efforts to control costs as growth slows and investor enthusiasm cools. Analysts have also cited competitive pressure and concerns about content quality. Netflix Plans 5% Workforce Reduction
• Negative Sentiment: Potential November tax-loss selling could create additional near-term volatility or selling pressure even if the earnings report is solid. Hold Netflix Through Earnings, But Be Aware Of Upcoming November Tax Loss Selling Season

Netflix Trading Up 0.4%

Shares of NFLX stock opened at $70.61 on Tuesday. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $124.86. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market capitalization of $294.02 billion, a PE ratio of 22.23, a PEG ratio of 0.99 and a beta of 1.62. The stock has a fifty day simple moving average of $75.40 and a two-hundred day simple moving average of $81.19.

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 (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The firm's revenue was up 13.4% on a year-over-year basis. During the same quarter last year, the business posted $0.72 earnings per share. On average, analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Activity

In related news, CEO Gregory Peters sold 27,312 shares of the firm's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company's stock, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider David Hyman sold 5,723 shares of Netflix stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 179,045 shares of company stock valued at $13,132,194 in the last quarter. Company insiders own 1.24% of the company's stock.

Netflix 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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