Smith Group Asset Management LLC Sells 176,704 Shares of Netflix, Inc. $NFLX

Key Points

• Smith Group Asset Management reduced its Netflix stake by 38.3%, selling 176,704 shares and retaining 284,612 shares valued at approximately $19.8 million. Institutional investors collectively own 80.93% of Netflix.
• Analyst sentiment remains positive but has weakened, with Needham downgrading Netflix to “hold” and several firms cutting price targets. The stock carries a “Moderate Buy” consensus rating and an average target of $89.14.
• Netflix beat quarterly earnings expectations with $0.87 in EPS and $12.87 billion in revenue, but weaker forward guidance, moderating growth concerns and uncertainty around its advertising rollout have pressured the stock near its 52-week low.

Smith Group Asset Management LLC lowered its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 38.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 284,612 shares of the Internet television network's stock after selling 176,704 shares during the quarter. Smith Group Asset Management LLC's holdings in Netflix were worth $19,803,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also modified their holdings of the company. Bayban lifted its position in shares of Netflix by 400.0% in the first quarter. Bayban now owns 350 shares of the Internet television network's stock worth $34,000 after buying an additional 280 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd bought a new stake in shares of Netflix during the 2nd quarter worth about $26,000. Sawyer & Company Inc acquired a new position in shares of Netflix during the 3rd quarter valued at about $27,000. Compound Global Advisors LLC acquired a new position in shares of Netflix during the 2nd quarter valued at about $29,000. Finally, Burnham & Co LLC acquired a new position in shares of Netflix during the 2nd quarter valued at about $29,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Sanford C. Bernstein restated an "outperform" rating and issued a $80.00 target price (down from $95.00) on shares of Netflix in a report on Wednesday, October 21st. Needham & Company LLC cut Netflix from a "buy" rating to a "hold" rating in a research report on Wednesday, October 21st. Evercore reiterated an "outperform" rating and set a $90.00 price target on shares of Netflix in a report on Wednesday, October 21st. Deutsche Bank Aktiengesellschaft set a $93.00 price target on shares of Netflix in a research report on Wednesday, October 21st. Finally, Rothschild & Co Redburn reduced their price objective on shares of Netflix from $120.00 to $93.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $89.14.

Insider Buying and Selling

In other news, insider David A. Hyman sold 5,723 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the sale, the insider directly owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This represents a 1.78% 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 this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the firm's 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. The trade was a 18.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 197,025 shares of company stock worth $14,283,453. 1.24% of the stock is currently owned by company insiders.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix exceeded third-quarter earnings expectations, reporting $0.87 in EPS versus the $0.82 consensus estimate. Revenue reached $12.87 billion, up 11.9% year over year, while management expects operating margins to expand to 31.5% in 2026 from 29.5% in 2025. Netflix and ServiceNow Have Fallen More Than 30%
• Positive Sentiment: Netflix’s advertising business remains a potential growth driver, with advertising revenue expected to increase more than 80% in 2026. Bullish analysts also point to strong free cash flow, a healthy balance sheet, international growth and ongoing margin expansion as support for the long-term investment case. Netflix's Advertising Business Expands Rapidly
• Neutral Sentiment: Netflix is preparing to release The Altruists, a dramatization of the FTX collapse featuring actor Anthony Boyle as Sam Bankman-Fried. The series could provide additional attention and engagement, although its direct financial impact is uncertain. Sam Bankman-Fried Wrote to Actor Portraying Him
• Neutral Sentiment: A director sold 17,980 shares worth approximately $1.15 million under a pre-arranged Rule 10b5-1 plan. The transaction reduced his holdings by 18.4%, but its planned nature makes it a limited signal of management sentiment. Netflix Director SEC Filing
• Negative Sentiment: The primary pressure on NFLX is weaker fourth-quarter revenue guidance and evidence that growth is moderating. Investors viewed the outlook as disappointing despite the EPS beat, prompting a sharp selloff and pushing the stock near its lowest level since 2024. Netflix Is Making Big Changes
• Negative Sentiment: Netflix’s advertising rollout has faced delays, and its approximately $2 billion 2026 advertising-revenue forecast has been viewed as a reduction from earlier expectations. Competition from YouTube and other streaming platforms is raising questions about whether Netflix can sustain ad momentum. Netflix Advertising Momentum
• Negative Sentiment: Reports that viewers are watching less Netflix have intensified concerns about engagement, cultural relevance and competition from short-form video. Needham downgraded the stock to Hold and Wolfe Research to Peer Perform, while several firms lowered price targets. ETF selling has added to near-term technical pressure. Netflix Stock Falls on Report That Viewers Watch Less

Netflix Trading Down 0.8%

Netflix stock opened at $61.99 on Thursday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07. The business's 50-day simple moving average is $73.40 and its 200-day simple moving average is $81.85. The firm has a market capitalization of $254.55 billion, a PE ratio of 17.92, a PEG ratio of 0.96 and a beta of 1.62. Netflix, Inc. has a 52 week low of $61.51 and a 52 week high of $116.73.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, topping the consensus estimate 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 previous year, the firm earned $0.59 EPS. The firm's revenue was up 11.9% compared to the same quarter last year. Equities research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Netflix Profile

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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