Compass Financial Management LLC Buys Shares of 42,305 Netflix, Inc. $NFLX

Compass Financial Management LLC bought a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 42,305 shares of the Internet television network's stock, valued at approximately $3,081,000.

A number of other hedge funds have also made changes to their positions in NFLX. Elevation Point Wealth Partners LLC bought a new stake in shares of Netflix in the second quarter worth $7,568,000. Alta Advisers Ltd bought a new position in Netflix during the 2nd quarter valued at $1,123,000. Daiichi Life Insurance Co. Ltd. bought a new position in Netflix during the 2nd quarter valued at $12,224,000. Commerce Bank acquired a new position in Netflix during the 2nd quarter worth $47,642,000. Finally, Weitz Investment Management Inc. acquired a new position in Netflix during the 2nd quarter worth $10,510,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
• Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
• Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
• Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
• Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
• Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on NFLX shares. Morgan Stanley restated an "overweight" rating and issued a $90.00 target price (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Guggenheim set a $75.00 price target on Netflix and gave the stock a "buy" rating in a research note on Friday, July 17th. Seaport Research Partners lowered Netflix from a "buy" rating to a "neutral" rating in a report on Monday, July 20th. Erste Group Bank cut Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Finally, Oppenheimer set a $85.00 target price on Netflix and gave the stock an "outperform" rating in a report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Netflix Trading Down 0.7%

NASDAQ NFLX opened at $79.59 on Friday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The company has a 50-day simple moving average of $74.39 and a 200-day simple moving average of $84.34. The firm has a market capitalization of $331.41 billion, a PE ratio of 25.05, a price-to-earnings-growth ratio of 1.00 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data 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. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the business earned $0.72 earnings per share. Netflix's quarterly revenue was up 13.4% on a year-over-year basis. On average, equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred 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 in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the sale, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is owned by insiders.

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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