BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp Reduces Stake in Netflix

BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp has recently reduced its investment in Netflix, Inc. (NASDAQ:NFLX) by 13.3% during the third quarter, as stated in their latest filing with the Securities and Exchange Commission (SEC). Following this reduction, the fund now holds 71,898 shares of the popular streaming service. This occurred after they divested 11,033 shares in this timeframe, bringing their total value in Netflix to approximately $50,995,000, based on the latest SEC disclosures.

Investors have been actively adjusting their positions in Netflix as well. For instance, Denver PWM LLC acquired a new stake valued at about $25,000 in the second quarter. Similarly, during the third quarter, RPg Family Wealth Advisory LLC and E Fund Management Hong Kong Co. Ltd. also entered new positions worth roughly $25,000 and increased their stakes by 700%, respectively. Additionally, Proffitt & Goodson Inc. experienced a growth of 380% in their holdings after purchasing 38 more shares, raising their total ownership to 48 shares, valued at approximately $32,000. Another firm, AlphaMark Advisors LLC, significantly increased their stake by 642.9% in the second quarter, resulting in ownership of 52 shares valued at about $35,000. Currently, institutional investors and hedge funds own approximately 80.93% of Netflix's stock.

Insider Trading Activity

In other news regarding Netflix, Chairman Reed Hastings executed a substantial transaction on September 3rd, selling 25,074 shares at an average price of $680.92. This sale accounted for about $17.07 million in total, and after the transaction, Hastings retained only 85 shares valued at around $57,878. Furthermore, insider David A. Hyman sold 267 shares on November 5th for about $204,433.89, reducing his ownership slightly to 31,610 shares, worth approximately $24.20 million. The last ninety days have seen insiders sell a total of 185,866 shares valued at approximately $133.39 million, which constitutes about 1.76% of the company's stock held by insiders.

Market Performance of Netflix

As of Friday, Netflix shares opened at $886.81, showcasing a market capitalization of $379.07 billion. With a price-to-earnings ratio of 50.19 and a PEG ratio of 1.69, Netflix has had a notable range over the past year, with a low of $445.73 and a high of $908.00. The company's liquidity ratios also indicate stability, with a current ratio and quick ratio of 1.13 each, alongside a debt-to-equity ratio of 0.62. The stock's 50-day and 200-day moving averages stand at $773.01 and $699.54 respectively.

Recent Earnings and Analyst Ratings

Netflix recently disclosed its quarterly earnings on October 17th, announcing earnings per share of $5.40, which surpassed analysts' expectations of $5.09. The company reported a revenue of $9.82 billion, exceeding the predicted $9.77 billion. The net margin reported was 20.70% with a return on equity of 35.86%. Analysts foresee an earnings per share of 19.78 for Netflix for the current fiscal year.

Following the quarterly report, several research firms have updated their ratings for Netflix. Needham & Company LLC increased their price target on Netflix shares from $700 to $800, assigning a "buy" rating. Likewise, Pivotal Research elevated their target from $925 to $1,100, maintaining their buy recommendation. Additionally, Macquarie reaffirmed their "outperform" rating with a price target of $795. Bank of America also raised their target from $800 to $1,000, while Evercore ISI updated theirs from $750 to $775. In total, the current consensus stands with two analysts rating the stock as a sell, nine as a hold, and twenty-five suggesting a buy. The overall rating among market analysts categorizes Netflix as a "Moderate Buy" with an average price target of $764.82.

Company Overview

Netflix, Inc. offers a wide range of entertainment services, which include TV series, documentaries, feature films, and games across various genres and languages. Customers can access streaming content through a range of internet-connected devices such as TVs, mobile devices, and digital video players.

Netflix, Investment, Stocks