CM Wealth Advisors LLC Takes $2.06 Million Position in Netflix, Inc. $NFLX

Key Points

• CM Wealth Advisors acquired a $2.06 million Netflix stake in the second quarter, purchasing 28,829 shares. Netflix now represents about 0.4% of the firm’s portfolio, while institutional investors collectively own 80.93% of the company.
• Netflix reported quarterly earnings of $0.80 per share, narrowly exceeding estimates, while revenue rose 13.4% year over year to $12.56 billion. The stock opened at $80.22, with a market capitalization of roughly $334 billion.
• Wall Street maintains a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $103.48, although several analysts recently lowered their targets. Meanwhile, Netflix insiders sold roughly $49.1 million of stock over the past three months.

CM Wealth Advisors LLC acquired a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 28,829 shares of the Internet television network's stock, valued at approximately $2,058,000. Netflix comprises approximately 0.4% of CM Wealth Advisors LLC's investment portfolio, making the stock its 21st largest position.

Several other institutional investors have also recently made changes to their positions in the company. Csenge Advisory Group bought a new position in shares of Netflix during the second quarter valued at approximately $841,000. OV Management LLC purchased a new position in shares of Netflix during the second quarter valued at $67,000. AssuredPartners Investment Advisors LLC bought a new stake in shares of Netflix in the 2nd quarter valued at about $3,187,000. Shepherd Financial Partners LLC bought a new position in Netflix in the second quarter worth approximately $424,000. Finally, Johnson Financial Group Inc. purchased a new stake in shares of Netflix during the 2nd quarter worth $2,046,000. Institutional investors own 80.93% of the company's stock.

Netflix Trading Up 3.2%

NFLX stock opened at $80.22 on Thursday. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The business's 50-day moving average is $74.43 and its 200 day moving average is $84.39. 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 stock has a market cap of $334.03 billion, a price-to-earnings ratio of 25.25, a PEG 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 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 analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business'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 earnings per share. On average, sell-side analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Netflix News Summary

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

Insider Activity

In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer owned 73,787 shares of the company's stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the sale, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. The trade was a 18.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 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.

Wall Street Analyst Weigh In

NFLX has been the subject of several recent analyst reports. JPMorgan Chase & Co. lowered their target price on shares of Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. Erste Group Bank downgraded shares of Netflix from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Wedbush reduced their price target on Netflix from $118.00 to $105.00 and set an "outperform" rating for the company in a research report on Friday, July 17th. Morgan Stanley reiterated an "overweight" rating and issued a $90.00 price objective (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. Finally, Daiwa Securities Group increased their price target on Netflix from $97.00 to $102.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given 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.com, Netflix presently has a consensus rating of "Moderate Buy" and an average target price of $103.48.

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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