Advisors Preferred LLC Buys New Shares in Netflix, Inc. $NFLX

Key Points

• Advisors Preferred LLC acquired 17,000 Netflix shares worth approximately $1.32 million during the second quarter, adding to broader institutional interest; institutions and hedge funds own 80.93% of NFLX.
• Netflix insiders have been net sellers, with executives and directors selling 600,295 shares worth roughly $49.1 million over the past 90 days. CEO Gregory Peters reduced his holdings by 18.42% in one disclosed transaction.
• Wall Street maintains a “Moderate Buy” consensus on Netflix, with a $103.48 average price target. In its latest quarter, revenue rose 13.4% year over year and EPS slightly exceeded analysts’ expectations.

Advisors Preferred LLC bought a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 17,000 shares of the Internet television network's stock, valued at approximately $1,320,000.

Other hedge funds have also recently added to or reduced their stakes in the company. Turning Point Benefit Group Inc. boosted its holdings in shares of 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 valued at $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new stake in Netflix during the third quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new stake in Netflix during the fourth quarter worth about $26,000. Atlas Capital Advisors Inc. acquired a new stake in Netflix during the 4th quarter worth approximately $26,000. Finally, Jessup Wealth Management Inc purchased a new position in Netflix in the fourth quarter valued at approximately $27,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, 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 transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the 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 sale, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. CLSA began coverage on shares of Netflix in a research note on Monday, July 20th. They set an "outperform" rating for the company. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the company an "equal weight" rating in a report on Friday, July 17th. Stephens began coverage on shares of Netflix in a research report on Friday, July 17th. They set an "overweight" rating for the company. Jefferies Financial Group lowered their price target on Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a report on Wednesday, June 10th. Finally, KGI Securities lowered Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a research report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $103.48.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square rebuilt a major position. The investment firm’s purchase, despite previously taking a reported $400 million loss on Netflix, signals confidence in the company’s long-term growth, competitive position and leadership. The disclosure helped support a recent increase in NFLX shares. Netflix Moved, What Is Drawing Attention Now?
• Positive Sentiment: Analysts see advertising as a significant growth opportunity. Netflix is expanding its ad-supported business through live programming, new ad technology and additional tools for marketers. The company is targeting substantial future advertising revenue, which could diversify its sales base and support continued revenue expansion. NFLX's Ad Business Focus
• Positive Sentiment: Valuation has become more attractive after the selloff. Netflix trades at roughly 21 times forward earnings in the cited analysis, a level viewed as more reasonable than during prior periods of comparable declines. A CNBC contributor also recommended Netflix, reinforcing the bullish case among some investors. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Co-founder Reed Hastings discussed Netflix’s performance-focused culture. Hastings said companies should operate as teams rather than families, making workforce reductions easier when employees do not meet expectations. The comments revisit Netflix’s 2001 layoffs but do not represent a new operating announcement. Reed Hastings Says Companies Aren’t Families
• Negative Sentiment: YouTube is reportedly trying to prevent creators from signing with Netflix. YouTube is offering creators millions of dollars and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could raise Netflix’s content-acquisition costs and make it harder to secure popular creator-led programming. YouTube Offers Creators Millions to Avoid Netflix Deals
• Negative Sentiment: Netflix faces a lawsuit from the band Demon Hunter. The group alleges that Netflix’s KPop Demon Hunters infringes its rights. The case creates legal and reputational risk, although the financial impact is currently unclear. Netflix Sued by Band Demon Hunter

Netflix Trading Down 0.1%

Shares of NFLX opened at $80.14 on Friday. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The stock has a 50-day moving average price of $74.40 and a 200 day moving average price of $84.37. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The company has a market capitalization of $333.70 billion, a P/E ratio of 25.23, a P/E/G ratio of 1.01 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix'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 EPS. Sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

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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