Deane Retirement Strategies Inc. Purchases Shares of 28,948 Netflix, Inc. $NFLX

Key Points

• Deane Retirement Strategies purchased 28,948 Netflix shares in the second quarter, valued at approximately $2.07 million.
• Institutional investors own 80.93% of Netflix, with major firms including Vanguard, State Street and Geode significantly increasing their holdings.
• Netflix recently posted a modest earnings beat and 13.4% year-over-year revenue growth, while analysts maintain a “Moderate Buy” consensus and an average price target of $103.48; however, insider selling and recent share-price weakness remain concerns.

Deane Retirement Strategies Inc. purchased a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 28,948 shares of the Internet television network's stock, valued at approximately $2,069,000.

A number of other large investors have also recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp raised its stake in shares of Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the period. Capital World Investors boosted its position in Netflix by 859.1% in the fourth 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 during the last quarter. Finally, Morgan Stanley increased its holdings in Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock worth $8,002,414,000 after buying an additional 76,840,318 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Price Performance

Netflix stock opened at $74.14 on Monday. The stock has a market capitalization of $308.71 billion, a PE ratio of 23.34, a price-to-earnings-growth ratio of 0.93 and a beta of 1.52. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The business has a 50 day simple moving average of $75.32 and a 200-day simple moving average of $84.86. 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 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the prior year, the company posted $0.72 EPS. The business's quarterly revenue was up 13.4% on a year-over-year basis. On average, analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the sale, the director owned 246 shares in the company, valued at $18,474.60. This trade represents a 89.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,723 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the sale, the insider directly owned 316,100 shares of the company's stock, valued at $23,027,885. This represents a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 591,047 shares of company stock worth $48,355,766 in the last 90 days. 1.24% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts have commented on NFLX shares. Pivotal Research decreased their price objective on shares of Netflix from $96.00 to $70.00 and set a "hold" rating for the company in a research note on Friday, July 17th. Needham & Company LLC reissued a "buy" rating on shares of Netflix in a report on Friday, April 17th. New Street Research boosted their target price on shares of Netflix from $96.00 to $102.00 in a research report on Friday, April 17th. KeyCorp reaffirmed an "overweight" rating and issued a $92.00 price target (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Finally, BMO Capital Markets downgraded Netflix from an "outperform" rating to a "market perform" rating in a research report on Monday, July 20th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $103.48.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix will exclusively premiere Grand Theft Auto VI: An Extended Look on August 27, six hours before its YouTube release. The high-profile Rockstar Games event could drive subscriber engagement, streaming traffic and broader attention to Netflix’s platform. GTA VI Extended Look to Debut on Netflix
• Positive Sentiment: Wall Street’s outlook remains moderately bullish despite NFLX’s weak recent performance. Analysts’ consensus rating is “Moderate Buy,” with an average price target of approximately $103.48, substantially above recent trading levels. Netflix Receives Moderate Buy Consensus
• Positive Sentiment: One valuation analysis estimates Netflix could be about 26% undervalued based on discounted-cash-flow and market-multiple models. A multiyear licensing agreement involving The Walking Dead universe may provide additional content and monetization opportunities. Netflix May Be Undervalued
• Neutral Sentiment: Netflix’s latest quarterly results were mixed: earnings per share narrowly beat estimates and revenue rose 13.4% year over year, but revenue slightly missed expectations. Investors may therefore remain focused on future growth and engagement trends.
• Negative Sentiment: CEO Gregory Peters sold 27,312 shares worth about $2.0 million, reducing his direct holdings by 18.42%. Director Richard Barton also sold 2,160 shares for approximately $162,000. Barton’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance, but the combined insider selling may still weigh on sentiment. Netflix Insider Selling
• Negative Sentiment: Netflix has underperformed the S&P 500 over the past year amid concerns about engagement, limited viewing-data disclosure and intensifying streaming competition. The shares also remain below their major moving averages, signaling continued technical pressure. Netflix Underperforms the S&P 500

Netflix 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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