B & T Capital Management DBA Alpha Capital Management Makes New Investment in Netflix, Inc. $NFLX

Key Points

• B&T Capital Management acquired 34,920 Netflix shares during the second quarter, valued at approximately $2.5 million. Institutional investors and hedge funds collectively own 80.93% of NFLX.
• Netflix reported an EPS beat but slightly missed quarterly revenue estimates, while cooling growth and weaker guidance concerns have pressured the stock. Shares recently traded near $76, well below the 12-month high of $126.71.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $103.48, but insider selling—including transactions by the CEO and CFO—remains an overhang.

B & T Capital Management DBA Alpha Capital Management 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 13F filing with the Securities & Exchange Commission. The firm acquired 34,920 shares of the Internet television network's stock, valued at approximately $2,493,000.

Several other institutional investors have also recently added to or reduced their stakes in the business. MidFirst Bank acquired a new stake in shares of Netflix in the second quarter worth approximately $613,000. BlackRock Inc. purchased a new position in Netflix during the second quarter worth approximately $24,902,221,000. Occidental Asset Management LLC acquired a new position in shares of Netflix in the 2nd quarter valued at $1,134,000. Dunhill Financial LLC purchased a new stake in shares of Netflix during the 2nd quarter valued at $6,471,000. Finally, Pallas Capital Advisors LLC acquired a new stake in shares of Netflix during the 2nd quarter worth $4,914,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here's Why Investors Should Care.
• Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
• Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
• Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
• Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.

Insider Activity

In other news, CEO Theodore A. Sarandos sold 27,312 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the sale, the chief executive officer directly owned 178,954 shares in the company, valued at $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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, CFO Spencer Adam Neumann sold 9,248 shares of the business'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 owned 73,787 shares in the company, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last three months. 1.24% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on NFLX. Deutsche Bank Aktiengesellschaft set a $110.00 target price on Netflix in a report on Monday, July 20th. Bank of America reaffirmed a "buy" rating and issued a $125.00 price objective on shares of Netflix in a research note on Monday, May 18th. Moffett Nathanson decreased their target price on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Sanford C. Bernstein set a $95.00 target price on shares of Netflix and gave the stock an "outperform" rating in a research report on Friday, July 17th. Finally, Robert W. Baird set a $90.00 price target on shares of Netflix and gave the company an "outperform" rating in a report on Wednesday, July 22nd. Four 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 given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $103.48.

Netflix Trading Down 2.7%

Shares of NFLX opened at $76.02 on Tuesday. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The stock's 50-day moving average is $74.53 and its two-hundred day moving average is $84.46. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The stock has a market cap of $316.54 billion, a PE ratio of 23.93, a P/E/G ratio of 0.98 and a beta of 1.52.

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 (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.72 earnings per share. Equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal 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.

Want to see what other hedge funds are holding NFLX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Netflix, Inc. (NASDAQ:NFLX - Free Report).

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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