Alamar Capital Management LLC Buys Shares of 28,280 Netflix, Inc. $NFLX

Key Points

• Alamar Capital Management initiated a Netflix position by purchasing 28,280 shares worth approximately $2.02 million, making Netflix 1% of its portfolio. Several other institutional investors also added new stakes, with institutions collectively owning 80.93% of the stock.
• Analyst sentiment remains broadly positive but cautious: Netflix has an average “Moderate Buy” rating and a consensus price target of $103.48, though some firms recently downgraded the stock or reduced their targets.
• Netflix slightly beat quarterly EPS estimates and reported 13.4% year-over-year revenue growth, while shares traded at $77.77. Insider selling has been notable, with insiders selling approximately $49.1 million in stock over the prior 90 days.

Alamar Capital Management LLC bought a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 28,280 shares of the Internet television network's stock, valued at approximately $2,019,000. Netflix makes up 1.0% of Alamar Capital Management LLC's portfolio, making the stock its 24th biggest holding.

Several other large investors have also recently made changes to their positions in NFLX. Sagace Wealth Management LLC acquired a new stake in Netflix in the 2nd quarter valued at about $432,000. HS Management Partners LLC acquired a new position in shares of Netflix during the 2nd quarter worth approximately $14,894,000. Mowery & Schoenfeld Wealth Management LLC acquired a new position in shares of Netflix during the 2nd quarter worth approximately $46,000. Element Pointe Advisors LLC purchased a new stake in shares of Netflix in the second quarter valued at approximately $719,000. Finally, Aljian Capital Management LLC purchased a new stake in shares of Netflix in the second quarter valued at approximately $6,807,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

NFLX has been the topic of a number of analyst reports. Citigroup reiterated a "market perform" rating on shares of Netflix in a research report on Monday. Morgan Stanley restated an "overweight" rating and issued a $90.00 target price (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. Raymond James Financial reaffirmed a "market perform" rating on shares of Netflix in a research note on Thursday, May 14th. Erste Group Bank lowered Netflix from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Finally, Pivotal Research lowered their price target on shares of Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $103.48.

Netflix Trading Up 2.3%

Shares of Netflix stock opened at $77.77 on Wednesday. The stock has a 50 day moving average of $74.46 and a 200 day moving average of $84.41. 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 firm has a market capitalization of $323.83 billion, a price-to-earnings ratio of 24.48, a PEG ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results 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 return on equity of 40.02% and a net margin of 28.22%.The company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter in the previous year, the business earned $0.72 earnings per share. The company's revenue for the quarter was up 13.4% on a year-over-year basis. As a group, research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity

In related news, Director Richard N. Barton sold 2,160 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the sale, the director directly owned 246 shares in the company, valued at approximately $18,474.60. The trade was a 89.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were 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 directly owned 178,954 shares in the company, valued at $13,126,275.90. The trade was a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by corporate insiders.

More Netflix News

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 Company 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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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