15,887 Shares in Netflix, Inc. $NFLX Purchased by Occidental Asset Management LLC

Key Points

• Occidental Asset Management acquired 15,887 Netflix shares worth approximately $1.13 million in the second quarter. Institutional investors collectively own 80.93% of Netflix, with Vanguard, State Street and other major firms holding substantial positions.
• Netflix reported quarterly EPS of $0.80, slightly above estimates, while revenue of $12.56 billion modestly missed forecasts but increased 13.4% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $103.48.
• Insiders sold 600,295 shares valued at roughly $49.1 million over the past 90 days, primarily to cover tax obligations tied to equity awards. Netflix shares recently traded near $76, well below their one-year high of $126.71.

Occidental Asset Management LLC acquired a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 15,887 shares of the Internet television network's stock, valued at approximately $1,134,000.

Other large investors have also bought and sold shares of the company. Vanguard Group Inc. grew its stake in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the period. State Street Corp lifted its position in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Netflix by 892.0% during 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 in the last quarter. Capital World Investors boosted its holdings in shares of Netflix by 859.1% during 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 in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in shares of Netflix by 685.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after buying an additional 75,107,069 shares during the period. 80.93% of the stock is owned by institutional investors.

Netflix Stock Performance

Shares of Netflix stock opened at $76.02 on Tuesday. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The firm's 50-day moving average is $74.53 and its 200 day moving average is $84.46. The stock has a market cap of $316.54 billion, a price-to-earnings ratio of 23.93, a PEG ratio of 0.98 and a beta of 1.52. 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 released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion during 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%. Netflix's revenue was up 13.4% compared to the same quarter last year. During the same period last year, the business earned $0.72 EPS. Sell-side analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Activity at Netflix

In related news, insider David A. Hyman sold 5,723 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the transaction, the insider directly owned 316,100 shares in the company, valued at $23,027,885. The trade was a 1.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore A. Sarandos sold 27,312 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the transaction, the chief executive officer owned 178,954 shares of the company's stock, valued at approximately $13,126,275.90. The trade was a 13.24% 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 have sold 600,295 shares of company stock valued at $49,056,671 over the last ninety days. Corporate insiders own 1.24% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on NFLX shares. China Intl Cap upgraded shares of Netflix to a "strong-buy" rating in a research note on Tuesday, July 21st. KeyCorp restated an "overweight" rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the stock an "outperform" rating in a report on Friday, July 17th. Oppenheimer set a $85.00 target price on shares of Netflix and gave the company an "outperform" rating in a report on Friday, July 17th. Finally, Daiwa Securities Group lifted their target price on shares of Netflix from $97.00 to $102.00 and gave the company an "outperform" rating in a report on Thursday, April 23rd. Four investment 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 assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $103.48.

Netflix News Roundup

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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