Netflix, Inc. $NFLX Stock Sold by Perpetual Ltd

Key Points

• Perpetual Ltd cut its Netflix stake by 93.5% in the third quarter, selling 328,293 shares and retaining 22,786 shares worth approximately $1.6 million. Despite the sale, institutional investors collectively owned 80.93% of Netflix.
• Netflix shares opened at $70.46, below both their 50-day and 200-day moving averages, and remained well below the 52-week high of $124.86. The stock had a market capitalization of approximately $293.4 billion and a P/E ratio of 22.18.
• Analysts maintained a generally positive view, with Netflix carrying a “Moderate Buy” consensus rating and an average price target of $94.53, although several firms recently downgraded the stock or lowered targets. Recent insider sales included CEO Theodore Sarandos selling shares worth $7.7 million under a pre-arranged plan.

Perpetual Ltd decreased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 93.5% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 22,786 shares of the Internet television network's stock after selling 328,293 shares during the period. Perpetual Ltd's holdings in Netflix were worth $1,585,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in NFLX. BlackRock Inc. acquired a new position in shares of Netflix in the second quarter valued at approximately $24,902,221,000. State Street Corp lifted its holdings in shares of Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock worth $12,861,252,000 after purchasing an additional 8,474,820 shares during the period. Bank of America Corp DE lifted its holdings in shares of Netflix by 4.3% during the first 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 purchasing an additional 2,376,349 shares during the period. Invesco Ltd. lifted its holdings in shares of 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 during the period. Finally, Bank of New York Mellon Corp purchased a new position in Netflix in the 2nd quarter valued at $1,906,482,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix Stock Down 0.2%

NFLX opened at $70.46 on Wednesday. The business's fifty day simple moving average is $75.34 and its 200 day simple moving average is $81.03. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a market cap of $293.39 billion, a P/E ratio of 22.18, a PEG ratio of 1.00 and a beta of 1.62. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $124.86.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The firm's quarterly revenue was up 13.4% on a year-over-year basis. During the same period last year, the company earned $0.72 EPS. As a group, equities research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on NFLX. Pivotal Research cut their price target on shares of Netflix from $96.00 to $70.00 and set a "hold" rating for the company in a report on Friday, July 17th. Seaport Research Partners lowered Netflix from a "buy" rating to a "neutral" rating in a report on Monday, July 20th. New Street Research boosted their target price on Netflix from $96.00 to $102.00 and gave the stock a "neutral" rating in a research report on Friday, July 17th. Weiss Ratings raised Netflix from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Finally, KGI Securities downgraded Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 target price for the company. in a research note on Friday, July 17th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Netflix presently has an average rating of "Moderate Buy" and a consensus 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. The deal could increase engagement, subscriber retention and advertising opportunities, though its financial impact was not disclosed. Netflix Stock Scores as It Lands 2030 World Cup Rights
• Positive Sentiment: KeyCorp lowered its price target to $85 from $92 but retained an Overweight rating, implying substantial upside from recent trading levels. The firm identified four potential recovery levers, including stronger execution on advertising, content and growth initiatives. KeyBanc Sees Four Ways to Recover
• Neutral Sentiment: Netflix reports third-quarter results on Oct. 20. Wall Street will be watching whether revenue growth can meet guidance of about 12%, whether advertising is scaling and whether free cash flow rebounds after declining in the prior quarter. Netflix Earnings and Free Cash Flow
• Neutral Sentiment: Some investors remain bullish because Netflix continues to post high margins, growing sales and a rising subscriber base. International regions are expanding faster than the U.S. and Canada, but the home market still contributes about 43% of second-quarter revenue and grew only 10%. Netflix Stock Prediction for 2027
• Negative Sentiment: Huber Research issued a rare double downgrade, moving Netflix from Buy to Sell and citing concerns about valuation, weaker viewership and intensifying competition from platforms such as YouTube. Netflix Double Downgraded by Huber Research
• Negative Sentiment: Additional bearish coverage points to content-quality concerns, slowing growth across regions, possible large-scale layoffs and uncertainty over Netflix’s ability to sustain its premium valuation. Erste Group also slightly reduced its 2027 EPS forecast.

Insider Buying and Selling at Netflix

In related news, CEO Theodore Sarandos sold 105,850 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares of the company's stock, valued at approximately $15,063,605.98. This trade represents a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory Peters sold 27,312 shares of the business's stock in a transaction that occurred 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 sale, the chief executive officer owned 120,931 shares of the company's stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is currently owned by insiders.

About Netflix

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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