Letko Brosseau & Associates Inc. Makes New Investment in Netflix, Inc. $NFLX

Letko Brosseau & Associates Inc. bought a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the 3rd quarter, according to its most recent 13F filing with the SEC. The fund bought 539,960 shares of the Internet television network’s stock, valued at approximately $37,570,000.

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

Latest Netflix News

These are some of the NFLX news items that stood out recently:

• Positive Sentiment: Netflix’s strong cash generation and a packed holiday release schedule could support growth. The company expects about $12 billion in free cash flow for 2026, although the outlook is being tested by higher content spending. Article: Will Content Capex Weigh on Netflix’s Free Cash Flow Trajectory?
• Neutral Sentiment: Following a sharp decline, NFLX trades at under 18 times earnings, which may appeal to value-focused investors; the low multiple also reflects concerns about the company’s growth outlook. Article: Netflix trades under 18x earnings after a steep valuation reset
• Negative Sentiment: Co-CEO Gregory Peters sold 27,312 shares for about $1.74 million, reducing his direct holdings by 18.6%. The sale may add to near-term investor caution, though the report does not state the reason for the transaction. Article: Netflix CEO Gregory Peters Sells 27,312 Shares of Stock

Wall Street Analyst Weigh In

Several research firms have recently issued reports on NFLX. KeyCorp cut their price objective on shares of Netflix from $92.00 to $85.00 and set an “overweight” rating on the stock in a report on Tuesday, October 13th. China Renaissance lowered their target price 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. UBS Group set a $90.00 target price on shares of Netflix in a research note on Wednesday, October 21st. Bank of America dropped their target price on shares of Netflix from $105.00 to $90.00 and set a “buy” rating on the stock in a research report on Wednesday, October 21st. Finally, Wells Fargo & Company lowered shares of Netflix from a “neutral” rating to an “underweight” rating and cut their price target for the company from $80.00 to $57.00 in a research note on Friday, September 18th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $89.14.

Insider Buying and Selling at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the business’s stock in a transaction 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 transaction, the chief executive officer directly owned 119,412 shares in the company, valued at $7,596,991.44. The trade was a 18.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider David A. Hyman sold 5,727 shares of the stock in a transaction on Wednesday, November 4th. The stock was sold at an average price of $64.55, for a total transaction of $369,677.85. Following the sale, the insider directly owned 166,100 shares in the company, valued at $10,721,755. This trade represents a 3.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 89,024 shares of company stock worth $5,788,733. 1.24% of the stock is currently owned by insiders.

Netflix Stock Down 2.9%

Netflix stock opened at $62.69 on Friday. The firm has a market cap of $257.43 billion, a price-to-earnings ratio of 18.12, a price-to-earnings-growth ratio of 0.94 and a beta of 1.62. Netflix, Inc. has a 52 week low of $61.39 and a 52 week high of $116.73. The business’s 50-day moving average price is $69.59 and its 200 day moving average price is $80.54. 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) last announced its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The company had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. During the same period in the previous year, the company posted $0.59 earnings per share. Netflix’s revenue for the quarter was up 11.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

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.