Westwind Capital Sells 259,289 Shares of Netflix, Inc. $NFLX

Westwind Capital trimmed its stake in Netflix, Inc. (NASDAQ:NFLX) by 99.5% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,310 shares of the Internet television network’s stock after selling 259,289 shares during the period. Westwind Capital’s holdings in Netflix were worth $91,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in NFLX. Nykredit A S bought a new stake in Netflix during the second quarter worth about $105,697,000. Rockland Trust Co. raised its stake in shares of Netflix by 27.5% in the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network’s stock valued at $15,253,000 after acquiring an additional 47,339 shares during the last quarter. University of Texas Texas AM Investment Management Co. boosted its holdings in shares of Netflix by 798.5% in the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock worth $3,989,000 after acquiring an additional 37,807 shares in the last quarter. Ritholtz Wealth Management grew its position in Netflix by 25.0% during the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock worth $10,235,000 after acquiring an additional 21,260 shares during the last quarter. Finally, Wittenberg Investment Management Inc. increased its holdings in Netflix by 889.8% during the 4th quarter. Wittenberg Investment Management Inc. now owns 14,530 shares of the Internet television network’s stock valued at $1,362,000 after purchasing an additional 13,062 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Insider Activity

In related news, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the completion of the sale, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. This trade represents a 33.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 Netflix stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares of the company’s stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company’s stock.

Netflix Stock Up 2.7%

Netflix stock traded up $1.87 during midday trading on Thursday, reaching $71.57. The stock had a trading volume of 46,027,773 shares, compared to its average volume of 42,517,398. The stock has a market capitalization of $298.01 billion, a P/E ratio of 22.53, a price-to-earnings-growth ratio of 0.97 and a beta of 1.62. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $124.86. The firm’s fifty day simple moving average is $75.48 and its 200-day simple moving average is $81.49. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the previous year, the firm posted $0.72 earnings per share. The firm’s revenue for the quarter was up 13.4% on a year-over-year basis. As a group, analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Itau BBA Securities cut their price target on Netflix from $151.40 to $96.00 and set an “outperform” rating for the company in a report on Wednesday, August 5th. Piper Sandler restated an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Jefferies Financial Group dropped their price objective on Netflix from $110.00 to $90.00 and set a “buy” rating for the company in a report on Friday, July 17th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Netflix in a research note on Thursday, August 20th. Finally, Wolfe Research reiterated an “outperform” rating and issued a $95.00 price target (up from $84.00) on shares of Netflix in a research report on Tuesday, August 25th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Netflix currently has an average rating of “Moderate Buy” and an average target price of $94.70.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Warner Bros. deal exit removes major risk: Paramount reportedly paid Netflix approximately $2.8 billion to abandon its pursuit of Warner Bros. Discovery. The payment provides a substantial cash benefit while allowing Netflix to avoid the financing and integration risks of a large acquisition. Paramount paid Netflix $2.8 billion to walk away from its Warner Bros. deal
• Positive Sentiment: Analysts see value after the selloff: A Q3 preview describes Netflix as attractively priced, while Morgan Stanley maintained an “overweight” rating. Although it lowered its price target from $83 to $80, the revised target still implies meaningful upside from recent levels.
• Positive Sentiment: Potential growth beyond subscriptions: Commentary points to an underappreciated business segment—likely including advertising and other newer initiatives—as a possible future growth engine. Advertising revenue is expected to expand substantially, helping offset slower core subscriber and revenue growth. Netflix’s next growth engine could surprise investors
• Positive Sentiment: New content could support engagement: Netflix released a trailer for an eight-episode series about the FTX collapse, scheduled for November 19. The project is not a major financial catalyst by itself, but high-profile original programming can support viewing hours and subscriber retention.
• Neutral Sentiment: Tax-credit proposal offers a possible cost benefit: Proposed U.S. legislation could provide a 20%–30% tax credit for qualifying domestic film and television production. Netflix could benefit if the bill becomes law, but the legislation is not enacted and would apply only to future productions.
• Negative Sentiment: Growth is moderating: Second-quarter revenue rose 13.4% to $12.56 billion, while management expects approximately 11.7% growth in the third quarter. Investors are also concerned about rising content costs and Netflix’s valuation relative to its slower expected growth.
• Negative Sentiment: A larger rival is emerging: The completed Paramount-Warner Bros. combination creates a media group with substantial content assets and annual revenue exceeding Netflix’s, increasing competitive pressure. Its roughly $80 billion debt load may limit spending flexibility, but integration could eventually strengthen the rival’s streaming offering.

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.