Netflix, Inc. $NFLX Shares Sold by Wellington Management Group LLP

Wellington Management Group LLP lowered its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 21.0% in the 2nd quarter, Holdings Channel reports. The fund owned 27,972,324 shares of the Internet television network’s stock after selling 7,423,913 shares during the period. Wellington Management Group LLP’s holdings in Netflix were worth $1,997,224,000 as of its most recent filing with the SEC.

Other institutional investors have also modified their holdings of the company. Brighton Jones LLC boosted its stake in Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC grew its position in Netflix by 16.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after purchasing an additional 144 shares during the last quarter. Sivia Capital Partners LLC increased its stake in shares of Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after purchasing an additional 246 shares during the period. Strategic Investment Advisors MI increased its stake in shares of Netflix by 18.9% in the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after purchasing an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. increased its stake in shares of Netflix by 12.1% in the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after purchasing an additional 228 shares during the period. Institutional investors own 80.93% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Citigroup reiterated a “market perform” rating on shares of Netflix in a research report on Monday, August 17th. Guggenheim set a $75.00 target price on Netflix and gave the company a “buy” rating in a research report on Friday, July 17th. Oppenheimer set a $85.00 target price on Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. UBS Group cut their target price on Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Finally, CLSA assumed coverage on Netflix in a research report on Monday, July 20th. They set an “outperform” rating for the company. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $103.19.

Insider Activity

In related news, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the transaction, the director owned 79,690 shares of the company’s stock, valued at $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total value of $7,730,225.50. Following the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 sold a total of 600,295 shares of company stock worth $49,056,671 in the last quarter. 1.24% of the stock is currently owned by corporate insiders.

Netflix Trading Up 2.4%

Shares of NASDAQ:NFLX opened at $81.72 on Friday. The company has a 50 day moving average of $74.65 and a 200-day moving average of $84.33. The firm has a market cap of $340.28 billion, a P/E ratio of 25.72, a P/E/G ratio of 1.00 and a beta of 1.52. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. 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 posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating 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 business had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter last year, the business earned $0.72 earnings per share. The business’s revenue for the quarter was up 13.4% on a year-over-year basis. As a group, analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Key Headlines Impacting 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 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.