BlackRock Inc. Acquires Shares of 348,770,600 Netflix, Inc. $NFLX

BlackRock Inc. 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 348,770,600 shares of the Internet television network's stock, valued at approximately $24,902,221,000. BlackRock Inc. owned 8.38% 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. Turning Point Benefit Group Inc. raised its holdings in Netflix by 13,400.0% in 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 bought a new stake in shares of Netflix during the 3rd quarter valued at $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Netflix during the 4th quarter valued at $26,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Netflix in the 4th quarter worth about $26,000. Finally, Jessup Wealth Management Inc purchased a new stake in shares of Netflix in the 4th quarter worth about $27,000. Institutional investors own 80.93% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently issued reports on NFLX shares. CLSA initiated coverage on shares of Netflix in a research report on Monday, July 20th. They set an "outperform" rating for the company. Oppenheimer set a $85.00 price objective on shares of Netflix and gave the stock an "outperform" rating in a report on Friday, July 17th. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the company an "equal weight" rating in a research note on Friday, July 17th. Seaport Research Partners lowered shares of Netflix from a "buy" rating to a "neutral" rating in a report on Monday, July 20th. Finally, Piper Sandler reissued an "overweight" rating and issued a $85.00 price target (down from $115.00) on shares of Netflix in a research 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 assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $103.48.

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 Transactions at Netflix

In other news, Director Reed Hastings sold 386,700 shares of the company's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director directly owned 3,940 shares of the company's stock, valued at $338,721.80. This represents 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, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 600,295 shares of company stock valued at $49,056,671. Insiders own 1.24% of the company's stock.

Netflix Trading Down 2.7%

Shares of NASDAQ NFLX opened at $76.02 on Tuesday. The company 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. 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 firm's 50 day moving average price is $74.53 and its 200-day moving average price is $84.46. 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 announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share 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 analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm's revenue for the quarter was up 13.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.72 EPS. On average, equities 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.

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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