Wealthfront Advisers LLC purchased a new position in Netflix, Inc. (NASDAQ:NFLX – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 769,128 shares of the Internet television network’s stock, valued at approximately $54,916,000.
Several other hedge funds and other institutional investors have also recently modified their holdings of NFLX. Global Strategic Investment Solutions LLC acquired a new stake in Netflix in the 2nd quarter valued at about $233,000. Figure 8 Investment Strategies LLC acquired a new position in shares of Netflix during the 2nd quarter worth approximately $1,741,000. First National Bank of Omaha acquired a new position in shares of Netflix during the 2nd quarter worth approximately $6,259,000. Alamar Capital Management LLC purchased a new stake in shares of Netflix in the second quarter valued at approximately $2,019,000. Finally, Sagace Wealth Management LLC purchased a new stake in shares of Netflix in the second quarter valued at approximately $432,000. 80.93% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth
Several equities research analysts recently commented on NFLX shares. Bank of America reaffirmed a “buy” rating and issued a $125.00 price target on shares of Netflix in a report on Monday, May 18th. China Intl Cap upgraded Netflix to a “strong-buy” rating in a report on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft set a $110.00 target price on Netflix in a report on Monday, July 20th. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. Finally, Stephens initiated coverage on Netflix in a report on Friday, July 17th. They set an “overweight” rating on the stock. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.
Netflix Price Performance
Netflix stock opened at $77.77 on Wednesday. The company’s 50 day simple moving average is $74.46 and its 200-day simple moving average is $84.41. The company has a market capitalization of $323.83 billion, a price-to-earnings ratio of 24.48, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. 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 – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.72 EPS. As a group, equities research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.
Netflix News Summary
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
In other Netflix news, insider David A. Hyman sold 5,723 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider directly owned 316,100 shares in the company, valued at $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 600,295 shares of company stock valued at $49,056,671 over the last quarter. 1.24% of the stock is owned by corporate insiders.
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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