Bank of New York Mellon Corp Acquires Shares of 26,701,433 Netflix, Inc. $NFLX

Key Points

• Bank of New York Mellon acquired 26.7 million Netflix shares worth approximately $1.91 billion, giving it a 0.64% stake. Institutional investors collectively own 80.93% of Netflix.
• Netflix reported quarterly earnings of $0.80 per share, slightly exceeding estimates, while revenue reached $12.56 billion and grew 13.4% year over year. The stock opened at $80.14, well below its 12-month high of $126.71.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $103.48 price target, although several firms recently reduced their targets. Insiders have also sold approximately $49.1 million of shares over the past 90 days.

Bank of New York Mellon Corp bought a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 26,701,433 shares of the Internet television network's stock, valued at approximately $1,906,482,000. Bank of New York Mellon Corp owned 0.64% of Netflix as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted its position 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 valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp increased its holdings in shares of Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors raised 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 purchasing an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

Netflix Stock Performance

Shares of 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 firm has a market capitalization of $333.70 billion, a price-to-earnings ratio of 25.23, a price-to-earnings-growth ratio of 1.01 and a beta of 1.52. 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 firm has a 50 day moving average of $74.40 and a 200 day moving average of $84.37.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion for 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 quarterly revenue was up 13.4% on a year-over-year basis. During the same period last year, the firm earned $0.72 earnings per share. On average, research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity at Netflix

In related news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. This represents a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 600,295 shares of company stock valued at $49,056,671 in the last ninety days. Corporate insiders own 1.24% of the company's stock.

Trending Headlines about 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

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Barclays dropped their price objective on Netflix from $85.00 to $80.00 and set an "equal weight" rating on the stock in a research report on Friday, July 17th. Phillip Securities raised Netflix from a "moderate buy" rating to a "strong-buy" rating in a research report on Sunday, July 19th. Pivotal Research lowered their target price on shares of Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research note on Friday, July 17th. KeyCorp reiterated an "overweight" rating and issued a $92.00 price target (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Finally, Deutsche Bank Aktiengesellschaft set a $110.00 price objective on shares of Netflix in a report on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $103.48.

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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