TSG Advice Partners LLC Acquires New Stake in Netflix, Inc. $NFLX

Key Points

• TSG Advice Partners LLC acquired 16,183 Netflix shares during the third quarter, valued at approximately $1.16 million. Institutional investors and hedge funds collectively own 80.93% of Netflix.
• Netflix reported strong quarterly results, including $12.87 billion in revenue, $0.87 adjusted earnings per share and 11.9% year-over-year revenue growth, while expanding its advertising platform under new leadership.
• Investor concerns remain over weaker engagement, reduced advertising-revenue guidance and workforce cuts. Analysts maintain a “Moderate Buy” consensus, with an average price target of $89.14, despite several recent downgrades.

TSG Advice Partners LLC bought a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 16,183 shares of the Internet television network's stock, valued at approximately $1,155,000.

Several other large investors also recently added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of Netflix in the second quarter worth $26,000. Sawyer & Company Inc purchased a new position in shares of Netflix during the third quarter valued at $27,000. Compound Global Advisors LLC acquired a new position in Netflix during the second quarter valued at $29,000. Burnham & Co LLC acquired a new position in Netflix during the second quarter valued at $29,000. Finally, Pin Oak Investment Advisors Inc. acquired a new position in Netflix during the second quarter valued at $44,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to post strong financial results: third-quarter revenue reached approximately $12.87 billion, net income was $3.66 billion, and earnings exceeded consensus estimates. Management also projects more than 20% operating-income growth and a 31.5% full-year operating margin. How Investors May Respond To Netflix Lower Ad Revenue Guidance
• Positive Sentiment: The appointment of former Google executive Darshan Kantak to lead Netflix’s advertising platform could strengthen the company’s ad technology and execution as it seeks to build a larger, higher-margin advertising business. Netflix hires Darshan Kantak to lead ads platform
• Positive Sentiment: Some analysts and investors view Netflix’s valuation as comparatively attractive after the selloff, citing double-digit regional growth, lower churn, successful price increases and the potential for substantial long-term returns. Why Netflix Stock Could Double From This Dip
• Neutral Sentiment: A proposal that Netflix could initiate a dividend in 2027 is speculative rather than a company announcement. A dividend could appeal to shareholders, but it would also signal that management sees fewer high-return reinvestment opportunities. Prediction: Netflix Will Begin Paying a Dividend in 2027
• Negative Sentiment: Netflix lowered its 2026 advertising-revenue outlook to roughly $2.7 billion and reported softer engagement. Because advertising growth depends on viewing hours, stalled audience activity raises concerns about the pace of monetization. Netflix Needs You to Watch, Not Just Pay
• Negative Sentiment: The company is reportedly cutting 2% to 3% of its London workforce and recently announced approximately 1,000 global job eliminations. The restructuring may reduce costs, but it also highlights pressure to improve efficiency and concerns about growth. Netflix cuts UK staff and parts with production head
• Negative Sentiment: Commentary has identified Netflix’s U.S. audience engagement and broader streaming-market complexity as key problems, suggesting that strong margins alone may not offset slower viewing growth and tougher competition. Netflix’s U.S. Audience Engagement Problem Is Hurting the Stock

Insider Transactions at Netflix

In other news, CEO Gregory Peters sold 27,312 shares of Netflix stock in a transaction dated 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 directly owned 120,931 shares in the company, valued at $8,893,265.74. The trade was a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Bradford Smith sold 17,980 shares of the business's stock in a transaction that occurred on Monday, October 26th. The shares were sold at an average price of $64.03, for a total value of $1,151,259.40. Following the completion of the sale, the director directly owned 79,690 shares of the company's stock, valued at approximately $5,102,550.70. The trade was a 18.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 58,140 shares of company stock valued at $4,132,972 over the last 90 days. Company insiders own 1.24% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on NFLX. Huber Research downgraded Netflix from a "buy" rating to an "underweight" rating in a research note on Tuesday, October 13th. China Renaissance lowered their target price on Netflix from $100.00 to $80.00 and set a "hold" rating on the stock in a research note on Friday, July 17th. CICC Research dropped their target price on Netflix from $110.00 to $90.00 and set an "outperform" rating on the stock in a report on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft set a $93.00 target price on Netflix in a report on Wednesday, October 21st. Finally, Wells Fargo & Company lowered shares of Netflix from a "neutral" rating to an "underweight" rating and reduced their price target for the stock from $80.00 to $57.00 in a research report on Friday, September 18th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $89.14.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $62.34 on Tuesday. The firm has a market cap of $255.99 billion, a price-to-earnings ratio of 18.02, a P/E/G ratio of 0.91 and a beta of 1.62. Netflix, Inc. has a 1 year low of $61.39 and a 1 year high of $116.73. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. The business has a fifty day simple moving average of $72.33 and a 200 day simple moving average of $81.43.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The firm had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. During the same quarter in the previous year, the company posted $0.59 earnings per share. The business's quarterly revenue was up 11.9% compared to the same quarter last year. As a group, sell-side analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal 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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