Netflix, Inc. $NFLX Stock Sold by Financial & Tax Architects LLC

Key Points

• Financial & Tax Architects LLC cut its Netflix stake by 87.9% in the third quarter, selling 24,294 shares and retaining 3,350 shares valued at approximately $233,000. Institutional investors and hedge funds collectively own 80.93% of Netflix.
• Netflix faces mixed operating signals ahead of its October 20 earnings report: Jefferies initiated coverage with a Buy rating and an $85 target, while rising U.S. churn, weaker engagement and plans to eliminate roughly 1,000 jobs add pressure.
• Analysts maintain a consensus “Moderate Buy” rating with a $94.41 price target, although several firms recently lowered their targets. NFLX opened at $72.61, well below its 12-month high of $124.86.

Financial & Tax Architects LLC trimmed its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 87.9% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,350 shares of the Internet television network's stock after selling 24,294 shares during the quarter. Financial & Tax Architects LLC's holdings in Netflix were worth $233,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Netflix during the second quarter valued at approximately $24,902,221,000. Invesco Ltd. raised its holdings in Netflix by 835.9% during the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock worth $4,075,062,000 after purchasing an additional 38,818,947 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Netflix in the second quarter worth approximately $1,906,482,000. Legal & General Group Plc acquired a new stake in Netflix in the second quarter worth approximately $1,886,526,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Netflix in the second quarter worth approximately $1,481,303,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and an $85 price target, citing potential revenue support from subscription-price increases and advertising. Netflix stock gets bullish analyst call ahead of next week's earnings
• Positive Sentiment: Netflix named former Disney and Fox executive Peter Rice as chief content officer, replacing Bela Bajaria. Rice’s experience could help Netflix improve its content strategy and viewer engagement as competition intensifies. Netflix names former Disney executive Rice as new content chief
• Neutral Sentiment: Netflix will release third-quarter results on October 20. Wall Street estimates for revenue, earnings and operating metrics may drive volatility as investors look for evidence that pricing, advertising and content investments are offsetting weaker engagement. Ahead of Netflix Q3 earnings
• Negative Sentiment: Netflix is eliminating roughly 1,000 positions, or 6% of its workforce, its largest reduction since 2022. Management described the move as a resource-allocation and efficiency effort, but investors may view it as evidence of slowing growth and pressure to control costs. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Reports citing app data indicate U.S. churn has risen and viewing engagement has weakened. Those trends raise questions about Netflix’s ability to retain subscribers amid competition from other streaming services, YouTube and creator-led video. Netflix warning signs ahead of Q3 earnings

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. KGI Securities lowered Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price target for the company. in a research note on Friday, July 17th. Bank of America dropped their price objective on Netflix from $125.00 to $105.00 and set a "buy" rating on the stock in a research note on Friday, July 17th. Itau BBA Securities dropped their price objective on Netflix from $151.40 to $96.00 and set an "outperform" rating on the stock in a research note on Wednesday, August 5th. Jefferies Financial Group set a $85.00 price objective on Netflix and gave the company a "buy" rating in a report on Thursday. Finally, Sanford C. Bernstein initiated coverage on Netflix in a research note on Monday, September 28th. They set a "buy" rating for the company. Three analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Netflix has a consensus rating of "Moderate Buy" and a consensus price target of $94.41.

Netflix Stock Up 2.9%

NASDAQ NFLX opened at $72.61 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The company's 50 day simple moving average is $75.25 and its 200 day simple moving average is $80.73. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $124.86. The company has a market capitalization of $302.34 billion, a P/E ratio of 22.85, a PEG ratio of 1.00 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last issued 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. The firm had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the firm posted $0.72 earnings per share. Equities research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In other news, CEO Gregory K. 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 completion of the sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Richard N. 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 sale, the director directly owned 246 shares of the company's stock, valued at approximately $18,474.60. This represents a 89.78% 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. Insiders have sold a total of 179,045 shares of company stock valued at $13,132,194 in the last 90 days. 1.24% of the stock is owned by corporate insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.