State Street Corp Acquires 8,474,820 Shares of Netflix, Inc. $NFLX

Key Points

• State Street increased its Netflix stake by 4.9% in the second quarter, purchasing 8.47 million additional shares to hold 180.1 million shares valued at approximately $12.86 billion. Institutional investors collectively own 80.93% of the company.
• Netflix shares fell 1.9% to $71.94, despite slightly exceeding quarterly EPS expectations and reporting 13.4% year-over-year revenue growth. Insiders sold $13.1 million of stock during the quarter, primarily through transactions tied to tax obligations and equity awards.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $95.51 price target, although several firms have cut targets or downgraded the stock amid concerns about engagement, competition and slowing growth.

State Street Corp raised its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 4.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 180,129,582 shares of the Internet television network's stock after purchasing an additional 8,474,820 shares during the quarter. State Street Corp owned 4.33% of Netflix worth $12,861,252,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently modified their holdings of the stock. Altar Rock LLC grew its stake in Netflix by 10.6% during the second quarter. Altar Rock LLC now owns 4,343 shares of the Internet television network's stock worth $310,000 after buying an additional 415 shares during the last quarter. Security National Bank of SO Dak increased its holdings in Netflix by 462.0% during the 2nd quarter. Security National Bank of SO Dak now owns 14,725 shares of the Internet television network's stock valued at $1,051,000 after purchasing an additional 12,105 shares in the last quarter. Security National Bank of Sioux City Iowa IA bought a new position in Netflix in the 2nd quarter valued at $1,195,000. Anchor Investment Management LLC raised its position in Netflix by 1.9% in the 2nd quarter. Anchor Investment Management LLC now owns 71,185 shares of the Internet television network's stock valued at $5,083,000 after purchasing an additional 1,315 shares during the last quarter. Finally, Smith Chas P & Associates PA Cpas boosted its stake in Netflix by 34.3% in the second quarter. Smith Chas P & Associates PA Cpas now owns 3,718 shares of the Internet television network's stock worth $265,000 after purchasing an additional 950 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the transaction, the insider 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 filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 179,045 shares of company stock valued at $13,132,194 over the last quarter. 1.24% of the stock is owned by corporate insiders.

Netflix Trading Down 1.9%

NASDAQ NFLX traded down $1.42 during trading hours on Tuesday, hitting $71.94. The company's stock had a trading volume of 16,992,276 shares, compared to its average volume of 42,875,742. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $124.86. The firm has a market capitalization of $299.54 billion, a P/E ratio of 22.66, a PEG ratio of 1.01 and a beta of 1.53. 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 stock has a fifty day moving average of $75.81 and a 200 day moving average of $83.86.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS 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 analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business's quarterly revenue was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.72 EPS. Equities research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on NFLX shares. Daiwa Securities Group decreased their target price on Netflix from $102.00 to $76.00 and set an "outperform" rating on the stock in a report on Wednesday, July 22nd. The Goldman Sachs Group downgraded shares of Netflix from an "underweight" rating to a "sell" rating in a research report on Monday, July 20th. Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the stock an "outperform" rating in a report on Friday, July 17th. Bank of America decreased their price objective on shares of Netflix from $125.00 to $105.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Finally, TD Cowen lowered their price objective on shares of Netflix from $112.00 to $100.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Netflix currently has a consensus rating of "Moderate Buy" and a consensus target price of $95.51.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square disclosed a roughly $1 billion Netflix position, signaling confidence that the company’s current business prospects are stronger than when Ackman exited the stock in 2022. Ackman Bets $1 Billion on Netflix Redemption After $400 Million 2022 Loss
• Positive Sentiment: BMO argued that investors may be overly negative after Netflix’s more than 20% year-to-date decline, while other analysts said valuation and the company’s long-term cash-generation potential could limit further downside. Investors Are Overly Negative, Says BMO About Netflix Stock
• Neutral Sentiment: Netflix’s next quarterly report, expected around October 20, is becoming an important catalyst as investors look for evidence that subscriber engagement, content performance and revenue growth remain healthy. Should You Buy Netflix Stock Before Oct. 20?
• Neutral Sentiment: Netflix’s decision to stay out of the potential Paramount-Warner Bros. Discovery transaction avoids acquisition risk, but it also leaves the company without the additional scale or content assets that a deal could have provided. Paramount Could Acquire Warner Bros. Discovery Sooner Than Expected
• Negative Sentiment: HSBC downgraded Netflix from Buy to Hold and reduced its price target by 21% to $76, citing a less favorable risk-reward profile. Netflix Stock Falls after HSBC Downgrade and 21% Price Target Cut
• Negative Sentiment: Wells Fargo cut Netflix to Underweight and lowered its target to $57 from $80, pointing to engagement concerns, intensifying competition and a deceleration in growth. These calls have reinforced the recent selloff and pushed shares below their long-term moving averages. Wells Fargo Cuts Netflix to Underweight

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.

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