Ally Financial Inc. Makes New $7.14 Million Investment in Netflix, Inc. $NFLX

Ally Financial Inc. acquired a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 100,000 shares of the Internet television network's stock, valued at approximately $7,140,000. Netflix makes up about 0.9% of Ally Financial Inc.'s portfolio, making the stock its 25th largest position.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. BlackRock Inc. bought a new stake in Netflix during the 2nd quarter valued at about $24,902,221,000. State Street Corp raised its holdings in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC raised its holdings in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after buying an additional 89,558,684 shares during the last quarter. Finally, Capital World Investors lifted its stake in shares of Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after buying an additional 80,025,890 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Insider Transactions at Netflix

In related news, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company's stock, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the sale, the director owned 3,940 shares of the company's stock, valued at $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several brokerages recently weighed in on NFLX. Stephens began coverage on shares of Netflix in a research report on Friday, July 17th. They set an "overweight" rating for the company. Pivotal Research cut their target price on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research note on Friday, July 17th. KeyCorp reissued an "overweight" rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a report on Monday, July 13th. JPMorgan Chase & Co. decreased their price target on Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. Finally, Bank of America reiterated a "buy" rating and issued a $125.00 price objective on shares of Netflix in a report on Monday, May 18th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
• Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
• Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
• Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
• Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
• Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals

Netflix Stock Performance

Shares of NFLX opened at $79.59 on Monday. The firm has a market capitalization of $331.41 billion, a P/E ratio of 25.05, a PEG ratio of 1.00 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, Inc. has a one year low of $65.08 and a one year high of $126.71. The business has a fifty day moving average of $74.39 and a 200 day moving average of $84.35.

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