AlpenGlobal Capital LLC Buys New Stake in Netflix, Inc. $NFLX

Key Points

• AlpenGlobal Capital LLC acquired 127,931 Netflix shares worth approximately $9.1 million during the second quarter, making Netflix about 5.9% of its portfolio and its fifth-largest holding.
• Netflix reported quarterly EPS of $0.80, slightly beating estimates, while revenue rose 13.4% year over year to $12.56 billion. Institutional investors own approximately 80.93% of the company.
• Analysts maintain a generally positive outlook, with Netflix receiving a “Moderate Buy” consensus rating and an average price target of $103.48, though insider selling and competition for creator content remain potential concerns.

AlpenGlobal Capital LLC purchased a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 127,931 shares of the Internet television network's stock, valued at approximately $9,134,000. Netflix makes up about 5.9% of AlpenGlobal Capital LLC's holdings, making the stock its 5th largest position.

Other institutional investors also recently bought and sold shares of the company. Turning Point Benefit Group Inc. raised its holdings in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock worth $25,000 after purchasing an additional 268 shares in the last quarter. Imprint Wealth LLC acquired a new stake in Netflix during the 3rd quarter worth $25,000. Cornerstone Financial Management LLC purchased a new stake in Netflix in the fourth quarter valued at $26,000. Atlas Capital Advisors Inc. purchased a new stake in Netflix in the fourth quarter valued at $26,000. Finally, Jessup Wealth Management Inc acquired a new position in Netflix in the fourth quarter valued at $27,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Trading Down 0.1%

NASDAQ:NFLX opened at $80.14 on Friday. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock's 50 day simple moving average is $74.40 and its 200-day simple moving average is $84.37. The firm has a market cap of $333.70 billion, a P/E ratio of 25.23, a PEG ratio of 1.01 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. Netflix's quarterly revenue was up 13.4% on a year-over-year basis. During the same period last year, the firm posted $0.72 EPS. Equities analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

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

Analyst Ratings Changes

Several brokerages have issued reports on NFLX. Raymond James Financial reaffirmed a "market perform" rating on shares of Netflix in a report on Thursday, May 14th. Wedbush dropped 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. Daiwa Securities Group lifted their price target on Netflix from $97.00 to $102.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. China Intl Cap upgraded Netflix to a "strong-buy" rating in a research note on Tuesday, July 21st. Finally, Morgan Stanley reissued an "overweight" rating and issued a $90.00 price objective (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. Four 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 given a Sell rating to the company's stock. According to MarketBeat, Netflix has an average rating of "Moderate Buy" and an average price target of $103.48.

Insider Buying and Selling

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the 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 of the company's stock, valued at $13,126,275.90. This represents a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. 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, insider David A. Hyman sold 5,723 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $23,027,885. The trade was a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by insiders.

About Netflix

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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