Netflix, Inc. $NFLX Stock: Riverbridge Partners LLC Lowers Stake

Riverbridge Partners LLC cut its stake in Netflix, Inc. (NASDAQ:NFLX) by 5.8% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 386,662 shares of the Internet television network’s stock after selling 23,612 shares during the period. Riverbridge Partners LLC’s holdings in Netflix were worth $26,904,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix during the second quarter worth about $26,000. Pathway Financial Advisers LLC acquired a new stake in shares of Netflix in the 3rd quarter worth about $26,000. Sawyer & Company Inc acquired a new stake in shares of Netflix in the 3rd quarter worth about $27,000. Compound Global Advisors LLC acquired a new stake in shares of Netflix in the 2nd quarter worth about $29,000. Finally, Burnham & Co LLC bought a new stake in Netflix in the 2nd quarter valued at about $29,000. 80.93% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of analyst reports. Seaport Research Partners set a $85.00 target price on shares of Netflix in a research note on Wednesday, October 21st. Itau BBA Securities dropped their price target on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a research note on Wednesday, August 5th. DZ Bank reaffirmed a “buy” rating on shares of Netflix in a report on Monday, July 20th. JPMorgan Chase & Co. reduced their price objective on Netflix from $85.00 to $81.00 and set an “overweight” rating for the company in a research report on Wednesday, October 21st. Finally, President Capital decreased their price objective on Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a report on Monday, July 20th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $89.14.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $63.26 on Wednesday. Netflix, Inc. has a fifty-two week low of $61.39 and a fifty-two week high of $116.73. The firm’s 50-day simple moving average is $70.32 and its 200 day simple moving average is $80.76. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43. The stock has a market cap of $259.77 billion, a P/E ratio of 18.28, a P/E/G ratio of 0.94 and a beta of 1.62.

Netflix (NASDAQ:NFLX) 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. The business had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The company’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.59 earnings per share. Equities analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Activity at Netflix

In other news, CEO Gregory Peters sold 27,312 shares of the company’s stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $63.62, for a total value of $1,737,589.44. Following the completion of the sale, the chief executive officer directly owned 119,412 shares of the company’s stock, valued at approximately $7,596,991.44. This represents a 18.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Bradford Smith sold 17,980 shares of the company’s stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $64.03, for a total transaction 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. This represents a 18.41% 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 89,024 shares of company stock worth $5,788,733 in the last three months. Insiders own 1.24% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s EMEA revenue grew 11% year over year in the third quarter. Management says sustaining that growth in Europe will depend partly on preserving creative freedom amid regulation. Article: Netflix boss says creativity and regulation are not happy bedfellows in Europe
• Neutral Sentiment: Netflix launched an international campaign using 35mm film, supported by a social series about creatives’ viewing tastes. The campaign may support brand engagement, but its financial impact is unclear. Article: Netflix embraces 35mm film in international campaign
• Neutral Sentiment: A report described November short interest as totaling zero shares, with a 0.0-day days-to-cover ratio. That figure does not indicate meaningful short positioning, despite the report’s claim of a large increase.
• Negative Sentiment: Investor confidence remains a concern: coverage cites slowing Netflix growth and evidence that viewers are watching less. A content leadership shake-up is among management’s steps to address the challenge, but the concerns weigh on the growth outlook. Article: Why Netflix Stock Plunged 11% in October
• Negative Sentiment: Netflix also declined amid weakness across entertainment stocks. Coverage linked the sector’s reaction to concerns about the film outlook and debt at the newly combined Warner Bros.–Paramount, though it characterized Netflix and Disney as relatively less affected. Article: Skydance Sinks as Warner Bros. Film Slump Overshadows Earnings Beat

About Netflix

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.