DSM Capital Partners LLC Boosts Stake in Netflix, Inc. $NFLX

Key Points

• DSM Capital Partners LLC significantly increased its stake in Netflix by 158.0% in the second quarter, now owning 83,175 shares valued at approximately $111.38 million.
• Netflix's CEO, Theodore A. Sarandos, sold 2,026 shares of the company stock, which represents an 11.78% decrease in his ownership position.
• Analyst ratings for Netflix show a consensus of "Moderate Buy" with a target price of $1,337.63, while recent earnings reports indicate a year-over-year revenue increase of 15.9%.

DSM Capital Partners LLC grew its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 158.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 83,175 shares of the Internet television network's stock after buying an additional 50,931 shares during the period. Netflix accounts for 1.6% of DSM Capital Partners LLC's holdings, making the stock its 19th biggest position. DSM Capital Partners LLC's holdings in Netflix were worth $111,382,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Lindenwold Advisors INC purchased a new position in shares of Netflix in the second quarter worth $1,346,000. Trust Co. of Toledo NA OH increased its holdings in Netflix by 12.7% in the 2nd quarter. Trust Co. of Toledo NA OH now owns 2,949 shares of the Internet television network's stock worth $3,949,000 after buying an additional 332 shares during the period. SLT Holdings LLC increased its holdings in Netflix by 48.7% in the 2nd quarter. SLT Holdings LLC now owns 455 shares of the Internet television network's stock worth $609,000 after buying an additional 149 shares during the period. Drucker Wealth 3.0 LLC increased its holdings in Netflix by 53.5% in the 2nd quarter. Drucker Wealth 3.0 LLC now owns 858 shares of the Internet television network's stock worth $1,107,000 after buying an additional 299 shares during the period. Finally, Eastern Bank increased its holdings in Netflix by 17.8% in the 2nd quarter. Eastern Bank now owns 60,747 shares of the Internet television network's stock worth $81,348,000 after buying an additional 9,190 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Insider Transactions at Netflix

In related news, CEO Theodore A. Sarandos sold 2,026 shares of Netflix stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,160.62, for a total value of $2,351,416.12. Following the sale, the chief executive officer owned 15,168 shares of the company's stock, valued at approximately $17,604,284.16. This trade represents a 11.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Cletus R. Willems sold 238 shares of Netflix stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $1,153.52, for a total transaction of $274,537.76. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock worth $122,710,980 in the last ninety days. Company insiders own 1.37% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Phillip Securities lowered shares of Netflix from a "hold" rating to a "strong sell" rating in a research note on Monday, July 21st. The Goldman Sachs Group cut their price target on Netflix from $1,310.00 to $1,300.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 30th. Rosenblatt Securities increased their price target on Netflix from $1,514.00 to $1,515.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Canaccord Genuity Group reaffirmed a "buy" rating on shares of Netflix in a research report on Thursday, July 10th. Finally, JPMorgan Chase & Co. increased their price target on Netflix from $1,230.00 to $1,300.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. Two analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Netflix presently has an average rating of "Moderate Buy" and a consensus target price of $1,337.63.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $1,220.08 on Friday. The stock has a market capitalization of $518.45 billion, a price-to-earnings ratio of 51.98, a PEG ratio of 2.07 and a beta of 1.59. Netflix, Inc. has a 12 month low of $677.88 and a 12 month high of $1,341.15. The firm's 50 day simple moving average is $1,210.84 and its 200-day simple moving average is $1,167.10. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The Internet television network reported $7.19 EPS for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. The business had revenue of $11.08 billion for the quarter, compared to analysts' expectations of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The business's revenue was up 15.9% on a year-over-year basis. During the same quarter last year, the company earned $4.88 EPS. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. Analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.

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