Loftus Peak Pty Ltd raised its position in Netflix, Inc. (NASDAQ:NFLX – Free Report) by 19.1% during the third quarter, according to its most recent filing with the SEC. The firm owned 424,168 shares of the Internet television network’s stock after purchasing an additional 67,965 shares during the period. Netflix accounts for approximately 3.4% of Loftus Peak Pty Ltd’s portfolio, making the stock its 12th largest position. Loftus Peak Pty Ltd’s holdings in Netflix were worth $29,514,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Merkkuri Wealth Advisors LLC acquired a new stake in shares of Netflix during the first quarter worth $31,000. Bayban raised its stake in Netflix by 400.0% during the first quarter. Bayban now owns 350 shares of the Internet television network’s stock worth $34,000 after buying an additional 280 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd acquired a new position in Netflix in the second quarter valued at $26,000. Bank of New Hampshire lifted its holdings in Netflix by 900.0% in the fourth quarter. Bank of New Hampshire now owns 380 shares of the Internet television network’s stock valued at $36,000 after buying an additional 342 shares during the period. Finally, Compound Global Advisors LLC acquired a new position in Netflix in the second quarter valued at $29,000. Institutional investors and hedge funds own 80.93% of the company’s stock.
Wall Street Analyst Weigh In
A number of brokerages have commented on NFLX. China Renaissance cut their price target on shares of Netflix from $100.00 to $80.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Guggenheim reissued a “buy” rating and issued a $80.00 price objective (up from $75.00) on shares of Netflix in a research report on Thursday, October 1st. Daiwa Securities Group lowered their price objective on Netflix from $102.00 to $76.00 and set an “outperform” rating for the company in a research report on Wednesday, July 22nd. Itau BBA Securities dropped their price objective on Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a research note on Wednesday, August 5th. Finally, CICC Research decreased their target price on Netflix from $110.00 to $90.00 and set an “outperform” rating for the company in a research note on Tuesday, July 21st. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Netflix currently has a consensus rating of “Moderate Buy” and an average target price of $94.41.
Key Stories Impacting Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix plans to eliminate approximately 6% of its global workforce, primarily across product, technology, legal and human-resources functions. Management says the restructuring will improve discipline and redirect resources toward future investments, potentially supporting margins and efficiency. Netflix is laying off roughly 6% of its workforce
- Positive Sentiment: Some analysts and investors remain constructive, arguing that Netflix’s profitable operating model, international growth and ability to reinvent its business could make the recent selloff a buying opportunity. The shares trade at roughly 22 times trailing earnings. Forget Selling Netflix: NFLX Is the Streaming Stock I’m Buying More Of
- Positive Sentiment: Netflix secured exclusive rights to the 2030 FIFA World Cup in Spain and Andorra, offering a potential engagement and subscriber-acquisition catalyst. Netflix Stock Scores as It Lands 2030 World Cup Rights
- Neutral Sentiment: Investors will look to the October 20 earnings report for evidence that revenue growth, free cash flow and viewing trends are stabilizing. Analysts expect earnings growth, but recent estimates have been trimmed modestly. Netflix Is Set to Release Earnings on Oct. 20
- Negative Sentiment: The layoffs are also being interpreted as evidence that growth and user engagement have cooled. Reports cite stronger competition from YouTube and other streaming services, while Netflix seeks to keep audiences watching. Netflix to cut 1,000 jobs as growth concerns mount
- Negative Sentiment: App-tracking data reportedly showed a 16.6% increase in U.S. churn, adding to concerns about weaker domestic demand ahead of earnings. Netflix Has New Warning Signs Ahead of Q3 Earnings
- Negative Sentiment: Analyst downgrades and lower price targets reflect concerns about rising content costs, slowing viewership and whether cost-cutting alone can solve Netflix’s engagement problem. Netflix Stock Is Double Downgraded by Huber Research
Netflix Stock Performance
Shares of Netflix stock opened at $70.57 on Thursday. The business has a 50-day simple moving average of $75.27 and a 200 day simple moving average of $80.87. Netflix, Inc. has a one year low of $65.08 and a one year high of $124.86. 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 firm has a market capitalization of $293.85 billion, a price-to-earnings ratio of 22.21, a PEG ratio of 0.99 and a beta of 1.62.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The firm’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.72 EPS. On average, research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.
Insider Transactions at Netflix
In other news, CFO Spencer Neumann sold 9,248 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Richard Barton sold 720 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the sale, the director owned 2,460 shares of the company’s stock, valued at approximately $185,164.20. This represents a 22.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 179,045 shares of company stock valued at $13,132,194. Company insiders own 1.24% of the company’s stock.
Netflix Profile
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.
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