Act Two Investors LLC Acquires New Holdings in Netflix, Inc. $NFLX

Key Points

• Act Two Investors LLC acquired 77,907 Netflix shares worth approximately $5.56 million in the second quarter, making Netflix its 19th-largest holding and about 1.1% of its portfolio.
• Institutional investors own approximately 80.93% of Netflix, while several other funds recently initiated or increased positions, indicating continued institutional interest.
• Netflix reported quarterly EPS of $0.80, slightly above estimates, and revenue growth of 13.4% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48, although recent insider selling and mixed analyst actions remain cautionary signals.

Act Two Investors LLC acquired a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 77,907 shares of the Internet television network's stock, valued at approximately $5,563,000. Netflix accounts for approximately 1.1% of Act Two Investors LLC's investment portfolio, making the stock its 19th biggest holding.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Imprint Wealth LLC acquired a new stake in shares of Netflix in the 3rd quarter worth approximately $25,000. Wealth Watch Advisors INC acquired a new position in shares of Netflix during the third quarter valued at approximately $103,000. Strategic Wealth Investment Group LLC acquired a new position in shares of Netflix during the second quarter valued at approximately $121,000. Wiser Advisor Group LLC bought a new stake in Netflix during the third quarter worth approximately $114,000. Finally, Beaird Harris Wealth Management LLC raised its holdings in Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock worth $137,000 after purchasing an additional 10 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $77.77 on Wednesday. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The stock has a fifty day moving average of $74.46 and a 200-day moving average of $84.41. The company has a market capitalization of $323.83 billion, a PE ratio of 24.48, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its 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 analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company's quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.72 EPS. As a group, equities analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on NFLX shares. Stephens assumed coverage on Netflix in a research note on Friday, July 17th. They set an "overweight" rating for the company. The Goldman Sachs Group downgraded Netflix from an "underweight" rating to a "sell" rating in a research note on Monday, July 20th. Barclays cut their price objective on Netflix from $85.00 to $80.00 and set an "equal weight" rating for the company in a report on Friday, July 17th. Pivotal Research lowered their target price on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a report on Friday, July 17th. Finally, CLSA assumed coverage on shares of Netflix in a research report on Monday, July 20th. They issued an "outperform" rating on the stock. Four research 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $103.48.

Insiders Place Their Bets

In other Netflix news, CEO Theodore A. Sarandos sold 105,850 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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. Also, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the sale, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last three months. Company insiders own 1.24% of the company's stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s return provided the main catalyst. Pershing Square disclosed a new Netflix position after previously exiting the stock at a substantial loss. Ackman’s renewed interest signals confidence in Netflix’s valuation, earnings growth, margins and long-term streaming position. Netflix Climbs 4% on Ackman’s Return
• Positive Sentiment: Investors are rotating toward beaten-down software and technology shares. Netflix benefited as capital moved out of semiconductor stocks and some AI-related trades, supporting a wider rebound in software and internet companies. Netflix, Salesforce, and Adobe Rally
• Positive Sentiment: Analysts and bullish investors see valuation upside. Recent commentary highlights Netflix’s margin expansion, buybacks and double-digit revenue growth, while several reports argue that the sharp decline from its peak creates an attractive entry point. The company also recently delivered a small quarterly EPS beat and year-over-year revenue growth.
• Neutral Sentiment: Technical momentum has improved, but the recovery is incomplete. Netflix has extended a recent rebound and is attempting to reclaim key moving averages, although the shares remain well below the 200-day average and are still down materially for the year. Is the Bottom in for Netflix Stock?
• Neutral Sentiment: Hedge-fund positioning was mixed. Q2 portfolio reshuffling showed that some institutional investors remain cautious even as Ackman re-entered the stock, limiting the strength of the bullish signal. Netflix Draws Mixed Signals
• Negative Sentiment: Slowing sales and guidance concerns continue to weigh on sentiment. Investors remain focused on moderating revenue growth and whether third-quarter revenue and earnings expectations can support the current valuation.
• Negative Sentiment: Insider selling added a cautionary signal. Netflix’s CFO reportedly sold nearly $5.6 million of company stock, potentially reinforcing investor concerns despite the transaction not necessarily indicating a change in business fundamentals. Netflix CFO Dumps Nearly $5.6 Million in Stock

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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