Strategic Global Advisors LLC Makes New Investment in Netflix, Inc. $NFLX

Strategic Global Advisors LLC purchased a new position in Netflix, Inc. (NASDAQ:NFLX) in the second quarter, HoldingsChannel reports. The institutional investor purchased 125,530 shares of the Internet television network’s stock, valued at approximately $8,963,000. Netflix makes up about 1.3% of Strategic Global Advisors LLC’s holdings, making the stock its 19th largest position.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Turning Point Benefit Group Inc. raised its stake in Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 268 shares during the last quarter. Imprint Wealth LLC purchased a new stake in Netflix during the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new stake in Netflix during the 4th quarter valued at about $26,000. Clal Insurance Enterprises Holdings Ltd acquired a new position in shares of Netflix in the second quarter valued at about $26,000. Finally, Atlas Capital Advisors Inc. acquired a new position in shares of Netflix in the fourth quarter valued at about $26,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $81.46 on Thursday. The stock has a 50 day moving average of $74.51 and a two-hundred day moving average of $84.37. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The stock has a market cap of $339.19 billion, a P/E ratio of 25.64, a P/E/G ratio of 1.03 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last issued 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. The business 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 was up 13.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.72 earnings per share. On average, research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Bank of America reaffirmed a “buy” rating and set a $125.00 target price on shares of Netflix in a report on Monday, May 18th. Stephens assumed coverage on shares of Netflix in a research report on Friday, July 17th. They set an “overweight” rating for the company. Morgan Stanley reiterated an “overweight” rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Jefferies Financial Group reduced their price target on shares of Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research report on Wednesday, June 10th. Finally, Citigroup reissued a “market perform” rating on shares of Netflix in a report on Monday, August 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $103.19.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Wolfe Research raised its Netflix price target to $95 from $84, arguing that viewer-engagement concerns are overstated and that an improving second-half content slate could help the shares. Jim Cramer separately called the stock a tactical buying opportunity after its recent decline. Netflix is primed to move higher as viewer engagement improves, Wolfe Research says
• Positive Sentiment: Netflix is reportedly exploring a broader streaming-subscription hub that could allow customers to sign up for third-party services such as Peacock and Fox One. The strategy could increase convenience, subscription-related revenue, and customer retention. Netflix Stock Climbs on Plans to Become Streaming Subscription Hub
• Positive Sentiment: Expanded NFL-related content and access to rival streaming programming could give Netflix more opportunities to grow its advertising business by increasing engagement and the value of its ad-supported tier. Netflix Stock: NFL Growth and Rival Streaming Access Could Grow Its Ad Business
• Neutral Sentiment: Reports point to an upcoming Netflix preview tied to Grand Theft Auto VI. The event could generate attention and short-term engagement, but its direct financial impact on Netflix is unclear. Dear Netflix Stock Fans, Mark Your Calendars for August 27
• Negative Sentiment: Industry data indicates that streaming price increases are slowing, while premium ad-free plans have received larger hikes than ad-supported tiers. This could limit Netflix’s pricing power and revenue growth if consumers resist further increases. 3-Year Streaming Outlook: Slowing Down Pricing Hikes
• Negative Sentiment: Some investor commentary remains cautious, noting that Netflix’s strong business performance has not consistently translated into share-price momentum and that the recent rebound case may already be reflected in expectations. Here’s the Test, Says Investor About Netflix Stock

Insider Buying and Selling

In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of the stock in a transaction 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 sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. This represents a 11.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated 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 sale, 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 position. The SEC filing for this sale provides additional information. Insiders have sold 600,295 shares of company stock valued at $49,056,671 in the last three months. 1.24% of the stock is owned by insiders.

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.