Texas Capital Bank Wealth Management Services Inc bought a new stake in Netflix, Inc. (NASDAQ:NFLX – Free Report) during the second quarter, HoldingsChannel reports. The firm bought 13,294 shares of the Internet television network’s stock, valued at approximately $949,000.
Several other large investors have also recently bought and sold shares of NFLX. Turning Point Benefit Group Inc. increased its position in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC bought a new position in shares of Netflix in the third quarter valued at $25,000. Cornerstone Financial Management LLC bought a new position in shares of Netflix in the fourth quarter valued at $26,000. Atlas Capital Advisors Inc. acquired a new position in Netflix during the fourth quarter worth $26,000. Finally, Jessup Wealth Management Inc acquired a new position in Netflix during the fourth quarter worth $27,000. 80.93% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling
In other news, 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. This trade represents a 98.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 600,295 shares of company stock valued at $49,056,671 in the last ninety days. 1.24% of the stock is currently owned by company insiders.
Netflix Stock Performance
Netflix (NASDAQ:NFLX – Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business’s revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.72 EPS. On average, sell-side analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.
Wall Street Analysts Forecast Growth
NFLX has been the topic of several analyst reports. Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday, July 19th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. Guggenheim set a $75.00 price objective on shares of Netflix and gave the stock a “buy” rating in a research note on Friday, July 17th. UBS Group dropped their target price on shares of Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Finally, Oppenheimer set a $85.00 target price on shares of Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $103.48.
Read Our Latest Research Report on NFLX
Trending Headlines about Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here’s Why Investors Should Care.
- Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
- Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
- Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
- Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.
Netflix 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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