Abbot Financial Management Inc. Buys Shares of 19,097 Netflix, Inc. $NFLX

Key Points

• Abbot Financial Management initiated a Netflix position by purchasing 19,097 shares worth approximately $1.36 million in the second quarter.
• Institutional investors and hedge funds own 80.93% of Netflix, while insiders have been net sellers, disposing of 600,295 shares worth about $49.1 million over the past 90 days.
• Netflix recently exceeded quarterly EPS expectations and grew revenue 13.4% year over year, but analysts have lowered several price targets; the stock carries a “Moderate Buy” consensus rating with an average target of $103.48.

Abbot Financial Management Inc. acquired a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 19,097 shares of the Internet television network's stock, valued at approximately $1,364,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. increased its position in Netflix by 912.5% during 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 buying an additional 351,493,659 shares in the last quarter. State Street Corp boosted its stake in shares of 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 acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Netflix by 892.0% during the fourth 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 acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors increased its position in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD increased its position in Netflix by 685.8% during 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 purchasing an additional 75,107,069 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the sale, the director owned 79,690 shares in the company, valued at $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction on 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 transaction, the chief executive officer owned 120,931 shares of the company's stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 600,295 shares of company stock worth $49,056,671. Company insiders own 1.24% of the company's stock.

Netflix Stock Performance

Shares of NFLX stock opened at $78.16 on Monday. The firm has a market capitalization of $325.45 billion, a P/E ratio of 24.60, a P/E/G ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. 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 company's fifty day moving average price is $74.67 and its two-hundred day moving average price is $84.53.

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, beating the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm's quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.72 earnings per share. On average, research 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 disclosed a new Netflix position of approximately 3.15 million shares, representing about 4.9% of the fund’s portfolio. Ackman said Netflix has effectively “won the streaming wars,” renewing investor interest after the stock’s major sell-off. Reuters article
• Positive Sentiment: Analysts and investing commentators point to Netflix’s resilient fundamentals: second-quarter revenue rose 13.4% year over year to $12.6 billion, earnings per share slightly exceeded estimates, and profitability remained strong. The advertising business, expanding margins and a valuation viewed as reasonable relative to growth are supporting the bullish case. Zacks article
• Positive Sentiment: Netflix’s continued push into live sports—including an MLB “Field of Dreams” game—and the extension of its Seinfeld agreement could strengthen engagement, advertising opportunities and content retention. MLB live sports article
• Neutral Sentiment: Institutional positioning is mixed: some large investors added shares while others reduced holdings. Analysts’ reported price targets remain above the current market level, but investors still must weigh valuation and slowing growth expectations.
• Negative Sentiment: Netflix closed its Hollywood-based Night School gaming studio and plans to close Helsinki-based Moonloot. The closures may improve focus and reduce costs, but they also raise questions about the company’s gaming strategy and ability to expand beyond streaming. Los Angeles Times article
• Negative Sentiment: Reported insider trading shows 30 Netflix open-market sales and no purchases over the past six months. While such sales may reflect compensation or diversification, the one-sided pattern can weigh on sentiment and contrasts with Ackman’s new bullish position. Quiver Quantitative article

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Jefferies Financial Group lowered their target price on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research note on Wednesday, June 10th. Wedbush reduced their price target on Netflix from $118.00 to $105.00 and set an "outperform" rating on the stock in a research note on Friday, July 17th. KGI Securities cut Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a report on Friday, July 17th. JPMorgan Chase & Co. lowered their price objective on Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a research report on Friday, July 17th. Finally, Erste Group Bank lowered Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $103.48.

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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