Netflix, Inc. $NFLX Stock Sold by Generate Investment Management Ltd

Key Points

• Generate Investment Management cut its Netflix stake by 90% in the third quarter, selling 130,000 shares and retaining 14,521 shares valued at approximately $1.01 million.
• Institutional investors collectively own 80.93% of Netflix, with State Street, Bank of America and Invesco among major holders that increased their positions.
• Netflix shares recently traded at $69.93, near the lower end of their 52-week range. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $94.53, although some firms have downgraded the stock or reduced their targets.

Generate Investment Management Ltd lowered its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 90.0% during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 14,521 shares of the Internet television network's stock after selling 130,000 shares during the quarter. Generate Investment Management Ltd's holdings in Netflix were worth $1,010,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in NFLX. BlackRock Inc. acquired a new stake in shares of Netflix during the second quarter valued at about $24,902,221,000. State Street Corp lifted its holdings in shares of Netflix by 4.9% in the 2nd quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock worth $12,861,252,000 after acquiring an additional 8,474,820 shares during the last quarter. Bank of America Corp DE lifted its holdings in shares of Netflix by 4.3% in the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock worth $5,571,201,000 after acquiring an additional 2,376,349 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Netflix by 835.9% in the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock worth $4,075,062,000 after acquiring an additional 38,818,947 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in shares of Netflix during the 2nd quarter worth approximately $1,906,482,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix Stock Down 0.8%

Shares of NFLX stock traded down $0.53 during trading on Wednesday, reaching $69.93. The company's stock had a trading volume of 17,540,820 shares, compared to its average volume of 42,150,199. 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 has a market capitalization of $291.18 billion, a price-to-earnings ratio of 22.03, a P/E/G ratio of 1.00 and a beta of 1.62. The stock's 50-day moving average price is $75.34 and its 200 day moving average price is $81.03. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $124.86.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the prior year, the firm earned $0.72 EPS. On average, research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on NFLX. CLSA began coverage on shares of Netflix in a report on Monday, July 20th. They issued an "outperform" rating for the company. Bank of America cut their target price on Netflix from $125.00 to $105.00 and set a "buy" rating on the stock in a research report on Friday, July 17th. Stephens assumed coverage on Netflix in a research note on Friday, July 17th. They set an "overweight" rating on the stock. Wells Fargo & Company cut Netflix from a "neutral" rating to an "underweight" rating and decreased their price target for the stock from $80.00 to $57.00 in a research note on Friday, September 18th. Finally, Rosenblatt Securities set a $75.00 price target on Netflix and gave the stock a "neutral" rating in a research report on Friday, July 17th. Three analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Netflix has a consensus rating of "Moderate Buy" and an average target price of $94.53.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix secured exclusive rights to broadcast the 2030 FIFA World Cup in Spain and Andorra, potentially strengthening its sports offering and creating another opportunity to attract and retain subscribers. Netflix secures 2030 World Cup rights
• Positive Sentiment: Some investors remain constructive after the stock’s roughly 40% decline over the past year, arguing that Netflix’s profitability, international growth and opportunities beyond subscriber expansion could support a recovery. Netflix growth opportunities beyond subscribers
• Neutral Sentiment: Netflix reports third-quarter results on October 20. Investors are expected to focus on revenue growth, U.S. and international trends, free cash flow, content spending and management’s outlook. Netflix upcoming earnings and free cash flow
• Negative Sentiment: Netflix is eliminating approximately 1,000 jobs, or 6% of its global workforce, in its largest reduction since 2022. The cuts may reduce expenses, but their timing suggests management is responding to slowing growth, weaker engagement and intensifying competition for viewers. Netflix cuts about 6% of jobs
• Negative Sentiment: App data from Apptopia reportedly showed U.S. churn rising 16.6%, raising concerns that Netflix is having difficulty maintaining engagement in its home market as viewers face more competing entertainment options. Netflix U.S. app churn rises
• Negative Sentiment: Analyst pressure has increased ahead of earnings: Huber Research downgraded NFLX to Sell, while KeyBanc lowered its price target despite retaining an Overweight rating. Concerns include slowing viewership, rising content costs and margin pressure. Netflix analyst downgrade

Insiders Place Their Bets

In other news, Director Richard Barton sold 2,160 shares of the company's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the sale, the director 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company's stock.

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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