Diversify Advisory Services LLC purchased a new stake in Netflix, Inc. (NASDAQ:NFLX – Free Report) in the second quarter, HoldingsChannel reports. The institutional investor purchased 177,548 shares of the Internet television network’s stock, valued at approximately $12,499,000.
Several other institutional investors also recently modified their holdings of NFLX. Gables Capital Management Inc. bought a new stake in Netflix in the second quarter valued at approximately $1,959,000. Investmark Advisory Group LLC bought a new position in shares of Netflix during the 2nd quarter worth approximately $388,000. Wealthfront Advisers LLC acquired a new position in shares of Netflix during the 2nd quarter worth approximately $54,916,000. Global Strategic Investment Solutions LLC bought a new stake in Netflix in the 2nd quarter valued at $233,000. Finally, Figure 8 Investment Strategies LLC bought a new stake in Netflix in the 2nd quarter valued at $1,741,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
NFLX has been the subject of several research reports. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. Pivotal Research dropped their price objective on shares of Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Erste Group Bank cut shares of Netflix from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. KGI Securities downgraded shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price for the company. in a report on Friday, July 17th. Finally, TD Cowen reduced their target price on shares of Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $103.48.
Netflix Stock Performance
Shares of NASDAQ NFLX opened at $77.77 on Wednesday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The stock’s fifty day moving average price is $74.46 and its two-hundred day moving average price is $84.41. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The firm has a market cap of $323.83 billion, a price-to-earnings ratio of 24.48, a P/E/G ratio of 0.98 and a beta of 1.52.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping 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 firm had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter last year, the business earned $0.72 EPS. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. On average, equities analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.
Key Netflix News
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Bill Ackman’s return provided the main catalyst. Pershing Square disclosed a new Netflix position after previously exiting the stock at a substantial loss. Ackman’s renewed interest signals confidence in Netflix’s valuation, earnings growth, margins and long-term streaming position. Netflix Climbs 4% on Ackman’s Return
- Positive Sentiment: Investors are rotating toward beaten-down software and technology shares. Netflix benefited as capital moved out of semiconductor stocks and some AI-related trades, supporting a wider rebound in software and internet companies. Netflix, Salesforce, and Adobe Rally
- Positive Sentiment: Analysts and bullish investors see valuation upside. Recent commentary highlights Netflix’s margin expansion, buybacks and double-digit revenue growth, while several reports argue that the sharp decline from its peak creates an attractive entry point. The company also recently delivered a small quarterly EPS beat and year-over-year revenue growth.
- Neutral Sentiment: Technical momentum has improved, but the recovery is incomplete. Netflix has extended a recent rebound and is attempting to reclaim key moving averages, although the shares remain well below the 200-day average and are still down materially for the year. Is the Bottom in for Netflix Stock?
- Neutral Sentiment: Hedge-fund positioning was mixed. Q2 portfolio reshuffling showed that some institutional investors remain cautious even as Ackman re-entered the stock, limiting the strength of the bullish signal. Netflix Draws Mixed Signals
- Negative Sentiment: Slowing sales and guidance concerns continue to weigh on sentiment. Investors remain focused on moderating revenue growth and whether third-quarter revenue and earnings expectations can support the current valuation.
- Negative Sentiment: Insider selling added a cautionary signal. Netflix’s CFO reportedly sold nearly $5.6 million of company stock, potentially reinforcing investor concerns despite the transaction not necessarily indicating a change in business fundamentals. Netflix CFO Dumps Nearly $5.6 Million in Stock
Insider Buying and Selling at Netflix
In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the sale, the director owned 79,690 shares of the company’s stock, valued at $6,177,568.80. The trade was a 31.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director owned 3,940 shares in the company, valued at approximately $338,721.80. The trade was a 98.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 600,295 shares of company stock valued at $49,056,671 in the last quarter. Company insiders own 1.24% of the company’s stock.
Netflix Company Profile
Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.
The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.
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