Netflix, Inc. $NFLX Stock Sold by Sustainable Growth Advisers LP

Sustainable Growth Advisers LP trimmed its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 38.8% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,486,816 shares of the Internet television network’s stock after selling 1,575,944 shares during the quarter. Netflix makes up about 1.9% of Sustainable Growth Advisers LP’s investment portfolio, making the stock its 18th biggest position. Sustainable Growth Advisers LP owned 0.06% of Netflix worth $173,033,000 at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of NFLX. BlackRock Inc. acquired a new position in shares of Netflix in the 2nd quarter worth approximately $24,902,221,000. Invesco Ltd. grew its position in Netflix by 835.9% during the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock worth $4,075,062,000 after acquiring an additional 38,818,947 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in Netflix during the 2nd quarter worth approximately $1,906,482,000. Legal & General Group Plc acquired a new stake in Netflix during the 2nd quarter valued at $1,886,526,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Netflix during the 2nd quarter valued at $1,481,303,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and an $85 price target, citing potential revenue support from subscription-price increases and advertising. Netflix stock gets bullish analyst call ahead of next week’s earnings
• Positive Sentiment: Netflix named former Disney and Fox executive Peter Rice as chief content officer, replacing Bela Bajaria. Rice’s experience could help Netflix improve its content strategy and viewer engagement as competition intensifies. Netflix names former Disney executive Rice as new content chief
• Neutral Sentiment: Netflix will release third-quarter results on October 20. Wall Street estimates for revenue, earnings and operating metrics may drive volatility as investors look for evidence that pricing, advertising and content investments are offsetting weaker engagement. Ahead of Netflix Q3 earnings
• Negative Sentiment: Netflix is eliminating roughly 1,000 positions, or 6% of its workforce, its largest reduction since 2022. Management described the move as a resource-allocation and efficiency effort, but investors may view it as evidence of slowing growth and pressure to control costs. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Reports citing app data indicate U.S. churn has risen and viewing engagement has weakened. Those trends raise questions about Netflix’s ability to retain subscribers amid competition from other streaming services, YouTube and creator-led video. Netflix warning signs ahead of Q3 earnings

Netflix Price Performance

NFLX opened at $72.61 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The stock has a market capitalization of $302.34 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.00 and a beta of 1.62. The company’s 50 day simple moving average is $75.25 and its 200-day simple moving average is $80.73. Netflix, Inc. has a one year low of $65.08 and a one year high of $124.86.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter in the previous year, the company posted $0.72 EPS. Netflix’s revenue was up 13.4% on a year-over-year basis. Sell-side analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Analyst Ratings Changes

NFLX has been the subject of several research analyst reports. BMO Capital Markets reiterated an “outperform” rating on shares of Netflix in a research report on Tuesday, September 22nd. HSBC cut Netflix from a “buy” rating to a “hold” rating and decreased their target price for the stock from $96.00 to $76.00 in a report on Tuesday, September 22nd. Rosenblatt Securities set a $75.00 target price on Netflix and gave the company a “neutral” rating in a research note on Friday, July 17th. Sanford C. Bernstein began coverage on Netflix in a research note on Monday, September 28th. They issued a “buy” rating for the company. Finally, Morgan Stanley cut their price target on Netflix from $83.00 to $80.00 and set an “overweight” rating for the company in a report on Thursday, October 8th. Three research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $94.41.

Insider Transactions at Netflix

In other Netflix news, CEO Gregory 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 value of $2,008,524.48. Following the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Spencer Neumann sold 9,248 shares of Netflix stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This trade represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 179,045 shares of company stock worth $13,132,194. Corporate insiders own 1.24% of the company’s stock.

Netflix Profile

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.