Compass Wealth Management LLC Acquires Shares of 71,090 Netflix, Inc. $NFLX

Key Points

• Compass Wealth Management acquired 71,090 Netflix shares worth approximately $5.1 million in the second quarter. Hedge funds and other institutions own 80.93% of Netflix’s outstanding stock.
• Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and average price target of $103.48, although Morgan Stanley lowered its target to $90 and Goldman Sachs downgraded the stock to “sell.”
• Netflix reported quarterly EPS of $0.80, slightly above estimates, while revenue rose 13.4% year over year. However, executives have sold shares recently, including more than 600,000 shares by insiders over the past 90 days.

Compass Wealth Management LLC bought a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 71,090 shares of the Internet television network's stock, valued at approximately $5,076,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Turning Point Benefit Group Inc. boosted its position in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares during the period. Imprint Wealth LLC purchased a new stake in shares of Netflix in the third quarter worth approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Netflix in the fourth quarter worth approximately $26,000. Atlas Capital Advisors Inc. bought a new stake in shares of Netflix during the 4th quarter worth approximately $26,000. Finally, Jessup Wealth Management Inc bought a new stake in shares of Netflix during the 4th quarter worth approximately $27,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages have commented on NFLX. CLSA assumed coverage on Netflix in a research report on Monday, July 20th. They issued an "outperform" rating on the stock. Morgan Stanley reissued an "overweight" rating and set a $90.00 target price (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Stephens initiated coverage on shares of Netflix in a report on Friday, July 17th. They issued an "overweight" rating on the stock. Weiss Ratings downgraded shares of Netflix from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, June 26th. Finally, The Goldman Sachs Group lowered shares of Netflix from an "underweight" rating to a "sell" rating 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 issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Netflix has a consensus rating of "Moderate Buy" and a consensus target price of $103.48.

Netflix Price Performance

Shares of NFLX stock opened at $77.77 on Wednesday. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The stock has a market capitalization of $323.83 billion, a price-to-earnings ratio of 24.48, a P/E/G ratio of 0.98 and a beta of 1.52. The stock has a fifty day simple moving average of $74.46 and a two-hundred day simple moving average of $84.41. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

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

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the completion of the sale, the chief executive officer owned 206,266 shares of the company's stock, valued at approximately $15,063,605.98. This represents a 33.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the transaction, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by company insiders.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s return provided the main catalyst. Pershing Square disclosed a new Netflix position after previously exiting the stock at a substantial loss. Ackman’s renewed interest signals confidence in Netflix’s valuation, earnings growth, margins and long-term streaming position. Netflix Climbs 4% on Ackman’s Return
• Positive Sentiment: Investors are rotating toward beaten-down software and technology shares. Netflix benefited as capital moved out of semiconductor stocks and some AI-related trades, supporting a wider rebound in software and internet companies. Netflix, Salesforce, and Adobe Rally
• Positive Sentiment: Analysts and bullish investors see valuation upside. Recent commentary highlights Netflix’s margin expansion, buybacks and double-digit revenue growth, while several reports argue that the sharp decline from its peak creates an attractive entry point. The company also recently delivered a small quarterly EPS beat and year-over-year revenue growth.
• Neutral Sentiment: Technical momentum has improved, but the recovery is incomplete. Netflix has extended a recent rebound and is attempting to reclaim key moving averages, although the shares remain well below the 200-day average and are still down materially for the year. Is the Bottom in for Netflix Stock?
• Neutral Sentiment: Hedge-fund positioning was mixed. Q2 portfolio reshuffling showed that some institutional investors remain cautious even as Ackman re-entered the stock, limiting the strength of the bullish signal. Netflix Draws Mixed Signals
• Negative Sentiment: Slowing sales and guidance concerns continue to weigh on sentiment. Investors remain focused on moderating revenue growth and whether third-quarter revenue and earnings expectations can support the current valuation.
• Negative Sentiment: Insider selling added a cautionary signal. Netflix’s CFO reportedly sold nearly $5.6 million of company stock, potentially reinforcing investor concerns despite the transaction not necessarily indicating a change in business fundamentals. Netflix CFO Dumps Nearly $5.6 Million in Stock

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.

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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