Professional Advisory Services Inc. Buys New Holdings in Netflix, Inc. $NFLX

Professional Advisory Services Inc. bought a new position in Netflix, Inc. (NASDAQ:NFLX) during the 3rd quarter, HoldingsChannel reports. The firm bought 251,989 shares of the Internet television network’s stock, valued at approximately $17,533,000. Netflix accounts for 2.1% of Professional Advisory Services Inc.’s investment portfolio, making the stock its 25th biggest holding.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in Netflix during the 2nd quarter worth $24,902,221,000. State Street Corp raised its holdings in shares of Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock worth $12,861,252,000 after acquiring an additional 8,474,820 shares during the period. Bank of America Corp DE lifted its position in Netflix by 4.3% in the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock valued at $5,571,201,000 after acquiring an additional 2,376,349 shares in the last quarter. Invesco Ltd. boosted its stake in Netflix by 835.9% in the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock worth $4,075,062,000 after purchasing an additional 38,818,947 shares during the period. Finally, Nuveen LLC increased its holdings in Netflix by 830.1% during the 4th quarter. Nuveen LLC now owns 20,579,000 shares of the Internet television network’s stock worth $1,929,487,000 after purchasing an additional 18,366,524 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Trending Headlines about 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.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on NFLX. CLSA assumed coverage on Netflix in a report on Monday, July 20th. They issued an “outperform” rating on the stock. KeyCorp restated an “overweight” rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Seaport Research Partners downgraded shares of Netflix from a “buy” rating to a “neutral” rating in a report on Monday, July 20th. Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price objective on the stock in a research report on Sunday, July 19th. Finally, Rothschild & Co Redburn reduced their target price 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. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $94.70.

Netflix Stock Up 2.7%

Shares of NASDAQ:NFLX traded up $1.87 during trading on Thursday, hitting $71.57. 46,027,773 shares of the company were exchanged, compared to its average volume of 42,517,398. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $124.86. The stock has a market cap of $298.01 billion, a price-to-earnings ratio of 22.53, a P/E/G ratio of 0.97 and a beta of 1.62. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a fifty day moving average price of $75.48 and a two-hundred day moving average price of $81.49.

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

Insider Activity

In other news, CFO Spencer Neumann sold 9,248 shares of the business’s stock in a transaction dated 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 $5,592,316.73. The trade was a 11.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider David A. Hyman sold 5,723 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $23,027,885. The trade was a 1.78% 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. In the last three months, insiders sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is owned by corporate insiders.

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.