Sumitomo Mitsui Trust Group Inc. cut its holdings in Netflix, Inc. (NASDAQ:NFLX – Free Report) by 3.1% in the 3rd quarter, Holdings Channel reports. The institutional investor owned 11,135,903 shares of the Internet television network’s stock after selling 360,429 shares during the period. Sumitomo Mitsui Trust Group Inc.’s holdings in Netflix were worth $774,836,000 as of its most recent filing with the Securities and Exchange Commission.
A number of other hedge funds have also bought and sold shares of the business. Clal Insurance Enterprises Holdings Ltd bought a new position in Netflix in the 2nd quarter worth about $26,000. Sawyer & Company Inc purchased a new position in Netflix during the 3rd quarter valued at about $27,000. Compound Global Advisors LLC purchased a new position in Netflix during the 2nd quarter valued at about $29,000. Burnham & Co LLC purchased a new position in Netflix during the 2nd quarter valued at about $29,000. Finally, Pin Oak Investment Advisors Inc. purchased a new position in Netflix during the 2nd quarter valued at about $44,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.
Key Headlines Impacting Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix repurchased approximately $4.8 billion of stock in the third quarter, signaling that management views the shares as undervalued. The company’s scale, strong margins and ability to spread content costs across a large subscriber base also support the bullish case. Netflix Spent $4.8 Billion Buying Back Stock in 1 Quarter
- Positive Sentiment: Netflix’s latest quarterly earnings exceeded expectations, with earnings per share of $0.87 versus an $0.82 consensus estimate. Revenue rose 11.9% year over year and the company reported a 29.69% net margin, highlighting continued financial strength.
- Neutral Sentiment: Analyst comparisons with Amazon and Walt Disney acknowledge Netflix’s valuable entertainment position, but suggest Amazon’s diversified ecosystem, Prime Video reach and advertising tools—or Disney’s broader media assets—may offer greater upside. Amazon vs. Netflix: Which Stock Is the Better Entertainment Play?
- Neutral Sentiment: Netflix is experimenting with live events and other ways to capture viewers’ attention, while reportedly walking away from an Xbox licensing deal. These strategic moves could create new growth opportunities, but their financial impact remains uncertain. The Battle That May Matter Most for Netflix Stock
- Negative Sentiment: Revenue growth has slowed for three consecutive quarters, and investors remain concerned about disappointing guidance. Reuters reports that the stock has lost about one-third of its value this year as the market reassesses Netflix’s growth outlook. Mapping the Market: More losses in store for Netflix shares?
- Negative Sentiment: Competition for living-room viewing and advertising is intensifying. YouTube’s television advertising business reportedly generated more in one quarter than Netflix’s full-year advertising forecast, raising concerns about Netflix’s ability to scale its newer ad-supported business. YouTube’s Living-Room Business
- Negative Sentiment: Reports that members are watching less, along with criticism that Netflix’s content-discovery experience is weakening its historical selling point, are fueling worries about engagement, retention and future subscriber growth. Insider selling has added another negative signal. Netflix Can’t Lift, Jim Cramer Says
Insider Activity at Netflix
In related news, insider David A. Hyman sold 5,723 shares of Netflix stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider owned 316,100 shares in the company, valued at $23,027,885. The trade was a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 business’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 197,025 shares of company stock valued at $14,283,453 over the last 90 days. Company insiders own 1.24% of the company’s stock.
Netflix Price Performance
Shares of NASDAQ:NFLX opened at $62.08 on Friday. The stock has a market cap of $254.92 billion, a PE ratio of 17.94, a PEG ratio of 0.91 and a beta of 1.62. The company’s fifty day moving average is $72.67 and its 200 day moving average is $81.57. Netflix, Inc. has a 52 week low of $61.39 and a 52 week high of $116.73. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The business had revenue of $12.87 billion for the quarter, compared to analyst estimates of $12.87 billion. During the same period last year, the company earned $0.59 EPS. Netflix’s revenue for the quarter was up 11.9% compared to the same quarter last year. Research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.
Wall Street Analysts Forecast Growth
Several equities analysts recently commented on the stock. China Renaissance reduced their price objective on shares of Netflix from $100.00 to $80.00 and set a “hold” rating for the company in a research note on Friday, July 17th. Moffett Nathanson reaffirmed a “buy” rating and set a $90.00 target price on shares of Netflix in a report on Wednesday, October 21st. Piper Sandler reiterated an “overweight” rating and issued a $78.00 target price (down from $85.00) on shares of Netflix in a research note on Wednesday, October 21st. Itau BBA Securities cut their price target on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating for the company in a report on Wednesday, August 5th. Finally, Rothschild & Co Redburn cut their price target on shares of Netflix from $120.00 to $93.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $89.14.
Check Out Our Latest Analysis on Netflix
About Netflix
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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