Altman Advisors Inc. Takes Position in Netflix, Inc. $NFLX

Key Points

• Altman Advisors acquired 31,628 Netflix shares in the second quarter, valued at approximately $2.26 million. Institutional investors and hedge funds collectively own 80.93% of Netflix.
• Netflix reported quarterly revenue of $12.56 billion, up 13.4% year over year, while earnings of $0.80 per share narrowly exceeded estimates. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $103.48.
• Insiders have been selling shares: company insiders sold 600,295 shares worth roughly $49.1 million over the past three months. Netflix also faces competitive pressure from YouTube over creator deals and a lawsuit related to “KPop Demon Hunters.”

Altman Advisors Inc. acquired a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 31,628 shares of the Internet television network's stock, valued at approximately $2,258,000.

Other hedge funds have also modified their holdings of the company. Vanguard Group Inc. increased its stake in Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares in the last quarter. BlackRock Inc. purchased a new stake in Netflix during the second quarter valued at about $24,902,221,000. State Street Corp boosted its holdings in shares of 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 period. Geode Capital Management LLC boosted its holdings in shares of 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 period. Finally, Capital World Investors increased its position 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 acquiring an additional 80,025,890 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

More Netflix News

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

Insiders Place Their Bets

In other Netflix news, Director Reed Hastings sold 386,700 shares of the business's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the transaction, the director owned 3,940 shares in the company, valued at $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,248 shares of the company's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 600,295 shares of company stock valued at $49,056,671 in the last three months. Company insiders own 1.24% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on NFLX shares. Erste Group Bank lowered shares of Netflix from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the stock an "outperform" rating in a research note on Friday, July 17th. Citigroup reiterated a "market perform" rating on shares of Netflix in a research report on Monday. The Goldman Sachs Group lowered Netflix from an "underweight" rating to a "sell" rating in a report on Monday, July 20th. Finally, UBS Group reduced their target price on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and a consensus target price of $103.48.

Netflix Stock Performance

Shares of NFLX opened at $80.14 on Friday. The company has a market capitalization of $333.70 billion, a PE ratio of 25.23, a PEG ratio of 1.01 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. The company's 50 day moving average price is $74.40 and its 200 day moving average price is $84.37. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last released 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 company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company's revenue was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.72 EPS. Research analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

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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