River Global Investors LLP Reduces Stake in Netflix, Inc.

River Global Investors LLP has lowered its stake in Netflix, Inc. (NASDAQ:NFLX) by 17.4% during the third quarter, as revealed in the company's latest Form 13F filing with the SEC. After selling 1,055 shares, the firm now holds 5,018 shares of the well-known internet television network. Netflix represents approximately 0.8% of River Global Investors LLP's overall investment portfolio, positioning it as the firm's 28th largest holding. As of the latest reporting period, River Global Investors LLP's holdings in Netflix are valued at around $3,560,000.

Changes in Institutional Holdings

In addition to River Global Investors, several other institutional investors have recently adjusted their positions in Netflix. Vanguard Group Inc. marginally increased its stake by 0.4% in the first quarter, now owning 36,587,911 shares worth approximately $22.22 billion after acquiring an extra 149,341 shares. Similarly, International Assets Investment Management LLC significantly boosted its holdings by an astonishing 116,620.0% in the third quarter, ending up with 5,753,129 shares valued at $4.08 billion following the acquisition of 5,748,200 shares. Furthermore, Baillie Gifford & Co. raised its stake by 2.3%, now owning 4,762,069 shares, and Legal & General Group Plc increased its position by 3.1%, owning 3,449,114 shares. Bank of New York Mellon Corp. also increased its holdings by 2.6%, bringing its total to 3,281,306 shares. Overall, institutional investors and hedge funds control around 80.93% of Netflix's stock.

Insider Trading Activities

In related news, CFO Spencer Adam Neumann sold 433 shares of Netflix's stock on November 6th, with the shares sold at an average price of $772.10, amounting to a total of $334,319.30. This transaction has been reported in a filing with the Securities and Exchange Commission. Additionally, Director Jay C. Hoag sold 37,675 shares on August 12th at an average price of $629.73, with total proceeds reaching $23,725,077.75. In the past three months, insiders sold 242,112 shares worth approximately $169,954,456, with company insiders holding about 1.76% of the stock.

Analysts' Target Predictions

Netflix has recently been featured in multiple analyst reports, with Guggenheim raising its price target from $810.00 to $825.00 while maintaining a "buy" rating. Wolfe Research expects to see an "outperform" rating for the stock. Redburn Atlantic lifted their target price from $740.00 to $760.00, also assigning a "buy" rating. Morgan Stanley increased its target from $820.00 to $830.00, labeling the stock "overweight". Citigroup also made an upward adjustment from $660.00 to $675.00 with a "neutral" rating. Overall, two research analysts have issued sell ratings, nine have hold ratings, and twenty-five have buy ratings, giving Netflix a consensus recommendation of "Moderate Buy" with an estimated target price of $748.15.

Current Stock Performance

Recently, Netflix stock experienced a slight decline, down by $1.50 to reach $795.04. The trading volume was recorded at 1,910,626 shares, against an average trading volume of 3,927,056 shares. Over the past year, Netflix's stock has fluctuated between a low of $434.35 and a high of $799.06. The company's market capitalization stands at $339.85 billion, with a P/E ratio of 44.99 and a price-to-earnings-growth ratio of 1.50. Debt levels are comfortably low, with a debt-to-equity ratio of 0.62. Moving averages indicate continued strength, with a fifty-day moving average of $721.55 and a 200-day moving average of $670.54.

On October 17th, Netflix reported its quarterly earnings, unveiling earnings per share of $5.40, which surpassed analysts’ expectations of $5.09. The company's revenue for the quarter reached $9.82 billion, also exceeding forecasts of $9.77 billion. Netflix demonstrated strong profitability with a net margin of 20.70% and an impressive return on equity of 35.86%. Industry analysts predict the company will achieve earnings of $19.78 per share for the current fiscal year.

About Netflix

Netflix, Inc. specializes in providing entertainment services, including television series, documentaries, feature films, and games across various genres and languages. They enable members to access streaming content through various internet-connected devices, which include TVs, mobile devices, and digital video players.

Netflix, Investors, Stocks