Hollencrest Capital Management Reduces Holdings in Netflix, Inc. $NFLX

Hollencrest Capital Management decreased its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 40.3% during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 10,173 shares of the Internet television network’s stock after selling 6,867 shares during the period. Hollencrest Capital Management’s holdings in Netflix were worth $726,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Shepherd Street Advisors LLC acquired a new position in shares of Netflix in the 4th quarter valued at $2,216,000. Morse Asset Management Inc grew its stake in Netflix by 809.3% during the 4th quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network’s stock valued at $6,069,000 after purchasing an additional 57,611 shares during the last quarter. University of Texas Texas AM Investment Management Co. grew its stake in Netflix by 798.5% during the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock valued at $3,989,000 after purchasing an additional 37,807 shares during the last quarter. New Mexico Educational Retirement Board increased its holdings in shares of Netflix by 900.0% in the fourth quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network’s stock valued at $18,022,000 after purchasing an additional 172,989 shares during the period. Finally, Ritholtz Wealth Management raised its position in Netflix by 25.0% during the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock worth $10,235,000 after buying an additional 21,260 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have recently commented on NFLX. TD Cowen dropped their price objective on shares of Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Citigroup restated a “market perform” rating on shares of Netflix in a research report on Monday, August 17th. 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. Pivotal Research cut their price target on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Finally, KGI Securities lowered Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective for the company. in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $103.19.

Insider Buying and Selling at Netflix

In related news, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the transaction, the director owned 246 shares in the company, valued at $18,474.60. The trade was a 89.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at $13,126,275.90. The trade was a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by company insiders.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly added approximately 13.1 million Netflix shares, making NFLX one of the hedge fund’s new concentrated holdings. The move may bolster investor confidence in Netflix’s valuation and long-term earnings potential. Bill Ackman portfolio overhaul article
• Positive Sentiment: Analysts and market commentators point to Netflix’s rapidly expanding advertising business, a potential $3 billion advertising revenue opportunity, continued global expansion and margin growth as catalysts for a possible recovery toward $100 and beyond. Record share buybacks could further support earnings per share. Netflix stock price prediction article
• Positive Sentiment: Netflix is being described as an undervalued long-term holding, with bullish arguments centered on double-digit revenue growth, free-cash-flow generation and the ability to monetize live events and lower-priced ad-supported plans. Netflix five-year outlook article
• Neutral Sentiment: The Netflix preview of Grand Theft Auto VI attracted significant online attention and traffic, but the immediate stock-market beneficiary appears to be Take-Two Interactive, the game’s publisher, rather than Netflix. GTA 6 Netflix preview article
• Negative Sentiment: Some analysts argue that Netflix’s growth is moderating and that Alphabet offers stronger diversification, advertising exposure and valuation. Recent commentary also identifies resistance near $82 and muted enthusiasm following the latest earnings report. NFLX versus GOOGL article
• Negative Sentiment: Reported insider activity remains a potential overhang: executives and directors made numerous sales and no purchases over the past six months. Investors may interpret the selling as reduced insider conviction, although it may also reflect routine diversification. Netflix ad monetization and market resistance article

Netflix Stock Performance

NFLX opened at $81.72 on Friday. 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 fifty day moving average price of $74.65 and a 200 day moving average price of $84.33. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The stock has a market cap of $340.28 billion, a P/E ratio of 25.72, a P/E/G ratio of 1.03 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last announced 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 firm had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the prior year, the firm posted $0.72 earnings per share. The firm’s quarterly revenue was up 13.4% compared to the same quarter last year. Equities research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

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.