TD Waterhouse Canada Inc. Lowers Position in Netflix, Inc. $NFLX

Key Points

• TD Waterhouse Canada reduced its Netflix position by 17.1% in the second quarter, selling 114,157 shares and retaining 552,681 shares valued at approximately $41 million.
• Institutional ownership remains high at 80.93%, although insider selling continued, including stock sales by Netflix’s CEO and a director totaling 213,595 shares over the past three months.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $96.65, despite several firms recently lowering their targets. Netflix’s latest quarter showed 13.4% year-over-year revenue growth and slightly exceeded EPS expectations.

TD Waterhouse Canada Inc. lowered its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 17.1% in the 2nd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 552,681 shares of the Internet television network's stock after selling 114,157 shares during the period. TD Waterhouse Canada Inc.'s holdings in Netflix were worth $41,042,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in NFLX. United Community Bank grew its stake in Netflix by 5.4% in the second quarter. United Community Bank now owns 3,220 shares of the Internet television network's stock worth $230,000 after purchasing an additional 165 shares during the period. Lakeshore Financial Planning Inc. lifted its position in Netflix by 102.2% during the second quarter. Lakeshore Financial Planning Inc. now owns 7,967 shares of the Internet television network's stock valued at $569,000 after buying an additional 4,027 shares during the period. Prosperitas Financial LLC lifted its position in Netflix by 13.6% during the second quarter. Prosperitas Financial LLC now owns 72,264 shares of the Internet television network's stock valued at $5,160,000 after buying an additional 8,667 shares during the period. NEOS Investment Management LLC boosted its holdings in shares of Netflix by 10.2% during the 2nd quarter. NEOS Investment Management LLC now owns 3,229,620 shares of the Internet television network's stock valued at $230,595,000 after buying an additional 300,145 shares in the last quarter. Finally, Leo H. Evart Inc. grew its position in shares of Netflix by 417.6% in the 2nd quarter. Leo H. Evart Inc. now owns 471 shares of the Internet television network's stock worth $34,000 after buying an additional 380 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Advertising growth is becoming a key bullish catalyst. Netflix’s ad-supported business is gaining momentum through advertiser additions, programmatic buying and AI-powered tools. Continued execution could provide a new revenue and profit-growth engine and support further stock recovery. Netflix Stock Rebound Fuels Ad Growth Talk: A Sign of More Upside?
• Positive Sentiment: Recent performance has renewed investor interest. Netflix gained about 13% in August after reaching a 52-week low, while several commentary pieces describe the shares as attractively valued and identify a potentially ongoing “second monetization cycle.” Why Netflix Stock Gained 13% in August
• Positive Sentiment: Analyst sentiment remains supportive. Wall Street’s generally bullish recommendations and the view that NFLX can rebound after underperforming the S&P 500 are helping sustain the recovery narrative. Is It Worth Investing in Netflix Based on Wall Street’s Bullish Views?
• Positive Sentiment: Content and partnership reach remain strategic strengths. A GTA VI trailer generated 31.1 million Netflix views despite being available exclusively for only six hours, highlighting the platform’s distribution power. A Stella Artois tie-in for The Gentlemen also demonstrates Netflix’s expanding brand-partnership potential. A Video Game Trailer Was Netflix’s Most-Watched English Film
• Neutral Sentiment: Acquisition speculation is driving attention but not yet value. Netflix is reportedly considering several streaming targets after losing a bid for a major media company. Regulatory hurdles, controlling shareholders and high valuations make a transaction uncertain. Netflix’s Acquisition Wishlist
• Negative Sentiment: Investors remain concerned about growth and competition. Netflix’s roughly 325 million subscribers provide scale, but slowing growth and pressure from short-form video platforms could limit upside. The stock’s underperformance versus the broader market is also keeping sentiment cautious. Netflix: A Streaming Giant at a Rare Discount?

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on NFLX shares. Pivotal Research lowered their price target on shares of Netflix from $96.00 to $70.00 and set a "hold" rating for the company in a research report on Friday, July 17th. TD Cowen lowered their target price on shares of Netflix from $112.00 to $100.00 and set a "buy" rating for the company in a report on Friday, July 17th. Moffett Nathanson dropped their price target on Netflix from $115.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday, July 17th. Rothschild & Co Redburn cut their price target on Netflix from $120.00 to $93.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $96.65.

Insider Activity

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 transaction, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 213,595 shares of company stock valued at $15,812,072 over the last three months. Corporate insiders own 1.24% of the company's stock.

Netflix Price Performance

NASDAQ NFLX opened at $82.67 on Friday. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The stock has a 50-day moving average of $75.43 and a 200 day moving average of $84.44. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The company has a market capitalization of $344.23 billion, a price-to-earnings ratio of 26.02, a PEG ratio of 1.16 and a beta of 1.53.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion for 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 business's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.72 EPS. On average, sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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