Hixon Zuercher Sells $3.1 Million in Netflix Stock Ahead of Earnings After 70% Surge
Key Points
Hixon Zuercher sold 2,565 Netflix shares for an estimated $3.1 million in the third quarter.
The transaction represents about 1% of Hixon Zuercher's 13F reportable AUM.
After the sale, Hixon Zuercher reported holding 2,206 Netflix shares valued at $2.6 million as of September 30, or about 0.8% of fund assets.
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Hixon Zuercher disclosed in an SEC filing on Friday that it sold 2,565 shares of Netflix during the third quarter for an estimated $3.1 million.
What Happened
According to a filing with the Securities and Exchange Commission released on Friday, Ohio-based Hixon Zuercher reduced its position in Netflix (NASDAQ:NFLX) by 2,565 shares. The estimated transaction value was $3.1 million, calculated using the average unadjusted closing price for the quarter. The fund now holds 2,206 Netflix shares worth $2.64 million.
What Else to Know
Top holdings after the filing:
- GSIE: $23.4 million (7.1% of AUM)
- GSLC: $12.1 million (3.7% of AUM)
- MSFT: $9.9 million (3% of AUM)
- NVDA: $20 million (2.9% of AUM)
- JPM: $9.6 million (2.9% of AUM)
As of Tuesday morning, Netflix shares were priced at $1,211.63, up 70% over the past year and far outperforming the S&P 500's nearly 13% gain over the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $41.7 billion |
| Net Income (TTM) | $10.2 billion |
| Price (as of Tuesday morning) | $1,211.63 |
| One-Year Price Change | 70% |
Company Snapshot
- Netflix offers streaming of TV series, documentaries, feature films, and mobile games across genres and languages, with additional DVD-by-mail services in the U.S.
- Operates a subscription-based model, generating revenue primarily from monthly membership fees paid by a global subscriber base.
- Serves approximately 222 million paid members in 190 countries, targeting a broad consumer audience seeking on-demand entertainment.
Netflix, Inc. provides entertainment services, including TV series, documentaries, feature films, and mobile games across various genres and languages to audiences worldwide. It serves approximately 222 million paid members in 190 countries.
Foolish Take
Hixon Zuercher’s sale of roughly $3.1 million in Netflix stock trims exposure ahead of the company’s third-quarter earnings report next Tuesday. While a relatively small reduction, the move comes after Netflix’s stock surged nearly 70% in the past year, propelled by accelerating profitability and strong subscriber engagement.
In the second quarter, Netflix reported 16% revenue growth to $11.1 billion and an operating margin of 34%, up seven points year over year. Management also raised full-year guidance, projecting about $45 billion in 2025 revenue and an operating margin near 30%, signaling confidence in the company’s ad-supported tier and content pipeline.
Next week’s report will test whether Netflix can sustain that momentum through the back half of the year, with major releases like Stranger Things, Wednesday, and Happy Gilmore 2 on deck. For now, the company remains one of the market’s top-performing mega-cap growth names—offering robust free cash flow and global reach, but perhaps little room for earnings missteps after such a steep rally.
Glossary
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
AUM (Assets Under Management): The total market value of all financial assets managed by a fund or investment firm.
Quarterly average price: The average market price of a security over a specific quarter, used for estimating transaction values.
Stake: The ownership interest or number of shares held in a company by an investor or fund.
Top holdings: The largest investments in a portfolio, typically ranked by market value or portfolio weight.
Outperforming the S&P 500: Achieving a higher return than the S&P 500 index over a given period.
Subscription-based model: A business model where customers pay recurring fees for ongoing access to a product or service.
Paid members: Individuals or entities who pay for access to a company's products or services, typically on a recurring basis.
TTM: The 12-month period ending with the most recent quarterly report.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase, Microsoft, Netflix, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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