TRB Wealth Management LLC acquired a new stake in Netflix, Inc. (NASDAQ:NFLX – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 20,220 shares of the Internet television network’s stock, valued at approximately $1,444,000.
A number of other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares in the last quarter. BlackRock Inc. acquired a new position in Netflix in the 2nd quarter worth $24,902,221,000. State Street Corp lifted its holdings in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after buying an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC boosted its position in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after buying an additional 89,558,684 shares during the last quarter. Finally, Capital World Investors boosted its position in Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.
Analyst Upgrades and Downgrades
A number of brokerages have recently issued reports on NFLX. BMO Capital Markets reaffirmed an “outperform” rating on shares of Netflix in a research report on Friday, August 14th. Pivotal Research dropped their price objective on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a report on Friday, July 17th. Stephens assumed coverage on Netflix in a research report on Friday, July 17th. They issued an “overweight” rating on the stock. Seaport Research Partners lowered Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Finally, Erste Group Bank cut Netflix from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Netflix currently has a consensus rating of “Moderate Buy” and a consensus price target of $103.48.
Key Netflix News
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
- Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
- Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
- Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
- Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
- Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals
Netflix Stock Down 0.7%
NFLX stock opened at $79.59 on Friday. The firm has a market cap of $331.41 billion, a price-to-earnings ratio of 25.05, a PEG ratio of 1.01 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 firm has a fifty day moving average price of $74.39 and a two-hundred day moving average price of $84.34. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.
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 (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period last year, the firm posted $0.72 EPS. The company’s revenue for the quarter was up 13.4% on a year-over-year basis. Research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.
Insider Activity
In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, the chief financial officer directly 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 sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 600,295 shares of company stock valued at $49,056,671 over the last quarter. Corporate insiders own 1.24% of the company’s stock.
About Netflix
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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