Danske Bank A S Buys New Stake in Netflix, Inc. $NFLX

Key Points

• Danske Bank A/S acquired 2.9 million Netflix shares worth approximately $207.2 million, representing about 0.07% of the company. Institutional investors collectively own 80.93% of Netflix.
• Netflix reported quarterly EPS of $0.80, slightly ahead of estimates, while revenue reached $12.56 billion and grew 13.4% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48.
• Insider selling remains a cautionary signal: company insiders sold 600,295 shares valued at roughly $49.1 million over the past 90 days, including sales by CEO Theodore Sarandos and director Richard Barton.

Danske Bank A S purchased a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund purchased 2,901,740 shares of the Internet television network's stock, valued at approximately $207,184,000. Danske Bank A S owned about 0.07% of Netflix as of its most recent filing with the SEC.

Other hedge funds have also bought and sold shares of the company. Vanguard Group Inc. increased its holdings in shares of Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. BlackRock Inc. bought a new position in Netflix during the second quarter valued at approximately $24,902,221,000. State Street Corp boosted its stake in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after buying an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC grew its holdings in Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after buying an additional 89,558,684 shares in the last quarter. Finally, Capital World Investors grew its holdings in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after buying an additional 80,025,890 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix Trading Up 2.3%

Shares of NFLX stock opened at $77.77 on Wednesday. The company has a market cap of $323.83 billion, a PE ratio of 24.48, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The stock's 50 day simple moving average is $74.46 and its two-hundred day simple moving average is $84.41. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

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, topping analysts' consensus estimates of $0.79 by $0.01. The firm 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 company's quarterly revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.72 EPS. Research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Buying and Selling

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the transaction, the chief executive officer directly owned 178,954 shares of the company's stock, valued at $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 Richard N. Barton sold 2,160 shares of Netflix stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the transaction, the director directly owned 246 shares of the company's stock, valued at $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 600,295 shares of company stock valued at $49,056,671 over the last 90 days. 1.24% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on NFLX. Moffett Nathanson reduced their price objective on Netflix from $120.00 to $115.00 and set a "buy" rating on the stock in a research note on Wednesday, June 17th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Netflix in a report on Monday, July 20th. Sanford C. Bernstein set a $95.00 price target on shares of Netflix and gave the stock an "outperform" rating in a research report on Friday, July 17th. CLSA assumed coverage on shares of Netflix in a research note on Monday, July 20th. They set an "outperform" rating on the stock. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $85.00 price target (down from $115.00) on shares of Netflix in a research note on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Netflix has an average rating of "Moderate Buy" and an average price target of $103.48.

Key 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

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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