AssuredPartners Investment Advisors LLC Buys New Stake in Netflix, Inc. $NFLX

Key Points

• AssuredPartners Investment Advisors acquired 44,639 Netflix shares worth approximately $3.19 million during the second quarter. Institutional investors collectively own 80.93% of Netflix’s outstanding stock.
• Analyst sentiment remains positive overall, with Netflix receiving a consensus “Moderate Buy” rating and an average price target of $103.48, despite some recent downgrades and target-price reductions.
• Netflix slightly exceeded quarterly EPS expectations, reporting $0.80 versus the $0.79 consensus, while revenue rose 13.4% year over year to $12.56 billion. However, insiders have sold roughly $49.1 million of stock over the past 90 days.

AssuredPartners Investment Advisors 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 44,639 shares of the Internet television network's stock, valued at approximately $3,187,000.

A number of other institutional investors also recently bought and sold shares of NFLX. Shepherd Financial Partners LLC acquired a new position in shares of Netflix during the 2nd quarter worth about $424,000. Johnson Financial Group Inc. purchased a new position in shares of Netflix in the 2nd quarter valued at about $2,046,000. Tocqueville Asset Management L.P. acquired a new stake in shares of Netflix during the 2nd quarter worth about $23,299,000. Kelman Lazarov Inc. acquired a new stake in shares of Netflix during the 2nd quarter worth about $772,000. Finally, one8zero8 LLC purchased a new stake in Netflix during the second quarter worth approximately $493,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on NFLX. Moffett Nathanson lowered their price target on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Bank of America reissued a "buy" rating and set a $125.00 price objective on shares of Netflix in a report on Monday, May 18th. Seaport Research Partners downgraded shares of Netflix from a "buy" rating to a "neutral" rating in a research report on Monday, July 20th. Sanford C. Bernstein set a $95.00 target price on shares of Netflix and gave the company an "outperform" rating in a report on Friday, July 17th. Finally, Raymond James Financial reaffirmed a "market perform" rating on shares of Netflix in a research report on Thursday, May 14th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $103.48.

Insider Transactions at Netflix

In related news, Director Richard N. Barton sold 2,160 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the sale, the director owned 246 shares in the company, valued at $18,474.60. This represents a 89.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,723 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider directly owned 316,100 shares in the company, valued at $23,027,885. The trade was a 1.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 600,295 shares of company stock worth $49,056,671 over the last 90 days. Company insiders own 1.24% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returns: Pershing Square disclosed a roughly 4.9% portfolio position in Netflix, reversing its earlier exit at a reported loss of about $400 million. Ackman’s renewed conviction reflects expectations for double-digit revenue growth, margin expansion and continued streaming leadership. What's Going On With Netflix Stock Wednesday?
• Positive Sentiment: Advertising remains a growth catalyst: Analysts highlighted Netflix’s rapidly scaling ad-supported business, including new advertising tools and live programming that could help generate billions in ad revenue and support longer-term revenue expansion. NFLX's Ad Business Focus
• Positive Sentiment: Valuation attracts bargain hunters: With the stock down about 43% from its peak and trading near 21 times forward earnings, investors are comparing Netflix’s valuation with prior major pullbacks and arguing that the risk-reward profile has improved. Several commentators and CNBC’s Jason Snipe also endorsed the shares. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Broader market rotation helped: Netflix participated in a shift away from semiconductor stocks and toward beaten-down software and technology shares. This suggests part of the move reflected sector positioning rather than a new company-specific operating announcement. Netflix, Salesforce, and Adobe Rally
• Negative Sentiment: Copyright lawsuit adds risk: The band Demon Hunter sued Netflix over the title and alleged intellectual-property issues involving KPop Demon Hunters. The legal action introduces potential costs and reputational risk, although its financial impact is currently unclear. Netflix sued by band Demon Hunter

Netflix Price Performance

Shares of NASDAQ NFLX opened at $80.22 on Thursday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The stock has a 50 day moving average of $74.43 and a two-hundred day moving average of $84.39. The stock has a market cap of $334.03 billion, a P/E ratio of 25.25, a P/E/G ratio of 0.98 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, topping analysts' consensus estimates of $0.79 by $0.01. The business 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%. The company's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the firm posted $0.72 earnings per share. On average, research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

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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