Corient Private Wealth LP Acquires Shares of 6,312,296 Netflix, Inc. $NFLX

Key Points

• Corient Private Wealth acquired 6.31 million Netflix shares worth approximately $225.1 million, giving it a 0.15% stake. Institutional investors and hedge funds collectively own 80.93% of Netflix.
• Netflix reported quarterly earnings of $0.80 per share, slightly above estimates, while revenue reached $12.56 billion and increased 13.4% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.19.
• Netflix faces mixed signals: Wolfe Research raised its price target amid improving engagement and content prospects, but insiders sold roughly 600,295 shares over the past quarter and slowing streaming price increases could constrain future revenue growth.

Corient Private Wealth LP acquired a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 6,312,296 shares of the Internet television network's stock, valued at approximately $225,109,000. Corient Private Wealth LP owned 0.15% of Netflix at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. Shepherd Street Advisors LLC bought a new position in Netflix during the fourth quarter worth about $2,216,000. Morse Asset Management Inc raised its position in shares of Netflix by 809.3% in the fourth quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network's stock valued at $6,069,000 after purchasing an additional 57,611 shares during the period. University of Texas Texas AM Investment Management Co. lifted its stake in shares of Netflix by 798.5% during the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network's stock valued at $3,989,000 after buying an additional 37,807 shares in the last quarter. New Mexico Educational Retirement Board lifted its stake in shares of Netflix by 900.0% during the 4th quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network's stock valued at $18,022,000 after buying an additional 172,989 shares in the last quarter. Finally, Ritholtz Wealth Management boosted its holdings in Netflix by 25.0% in the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network's stock worth $10,235,000 after buying an additional 21,260 shares during the period. Institutional investors and hedge funds own 80.93% of the company's stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Wolfe Research raised its Netflix price target to $95 from $84, arguing that viewer-engagement concerns are overstated and that an improving second-half content slate could help the shares. Jim Cramer separately called the stock a tactical buying opportunity after its recent decline. Netflix is primed to move higher as viewer engagement improves, Wolfe Research says
• Positive Sentiment: Netflix is reportedly exploring a broader streaming-subscription hub that could allow customers to sign up for third-party services such as Peacock and Fox One. The strategy could increase convenience, subscription-related revenue, and customer retention. Netflix Stock Climbs on Plans to Become Streaming Subscription Hub
• Positive Sentiment: Expanded NFL-related content and access to rival streaming programming could give Netflix more opportunities to grow its advertising business by increasing engagement and the value of its ad-supported tier. Netflix Stock: NFL Growth and Rival Streaming Access Could Grow Its Ad Business
• Neutral Sentiment: Reports point to an upcoming Netflix preview tied to Grand Theft Auto VI. The event could generate attention and short-term engagement, but its direct financial impact on Netflix is unclear. Dear Netflix Stock Fans, Mark Your Calendars for August 27
• Negative Sentiment: Industry data indicates that streaming price increases are slowing, while premium ad-free plans have received larger hikes than ad-supported tiers. This could limit Netflix’s pricing power and revenue growth if consumers resist further increases. 3-Year Streaming Outlook: Slowing Down Pricing Hikes
• Negative Sentiment: Some investor commentary remains cautious, noting that Netflix’s strong business performance has not consistently translated into share-price momentum and that the recent rebound case may already be reflected in expectations. Here’s the Test, Says Investor About Netflix Stock

Insiders Place Their Bets

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction 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 transaction, the chief executive officer owned 206,266 shares of the company's stock, valued at $15,063,605.98. This represents a 33.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the sale, the director owned 3,940 shares in the company, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is owned by corporate insiders.

Netflix Stock Performance

Shares of NFLX opened at $81.46 on Thursday. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. 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 company has a market cap of $339.19 billion, a PE ratio of 25.64, a price-to-earnings-growth ratio of 1.03 and a beta of 1.52. The stock has a 50-day moving average price of $74.51 and a 200-day moving average price of $84.37.

Netflix (NASDAQ:NFLX - Get Free Report) last posted 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. The company had revenue of $12.56 billion for the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. Netflix's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.72 earnings per share. As a group, equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on NFLX. Phillip Securities upgraded shares of Netflix from a "moderate buy" rating to a "strong-buy" rating in a research note on Sunday, July 19th. Pivotal Research dropped their target price on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research report on Friday, July 17th. Weiss Ratings lowered Netflix from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. Wells Fargo & Company set a $80.00 price target on Netflix and gave the company an "equal weight" rating in a research report on Friday, July 17th. Finally, UBS Group decreased their price objective on Netflix from $130.00 to $115.00 and set a "buy" rating on the stock in a research note on Friday, July 17th. Four research 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 issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $103.19.

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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