Dunhill Financial LLC Takes $6.47 Million Position in Netflix, Inc. $NFLX

Key Points

• Dunhill Financial acquired 90,631 Netflix shares worth approximately $6.47 million in the second quarter, making Netflix its 12th-largest holding at about 1.3% of the portfolio.
• Institutional ownership remains high at 80.93%, with major investors including Vanguard, State Street and Geode substantially increasing their positions.
• Netflix’s outlook is mixed: analysts maintain a consensus “Moderate Buy” rating with an average $103.48 price target, but slowing growth, recent revenue slightly below estimates and significant insider selling remain concerns.

Dunhill Financial LLC acquired a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 90,631 shares of the Internet television network's stock, valued at approximately $6,471,000. Netflix makes up approximately 1.3% of Dunhill Financial LLC's investment portfolio, making the stock its 12th biggest holding.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. raised its position 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 worth $36,567,805,000 after buying an additional 351,493,659 shares during the last quarter. State Street Corp raised its position in shares of Netflix by 927.6% during the 4th 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 raised 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 valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors raised its stake in Netflix by 859.1% in 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 purchasing an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after buying an additional 75,107,069 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here's Why Investors Should Care.
• Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
• Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
• Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
• Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.

Insiders Place Their Bets

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction on Thursday, August 6th. The stock was 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 of the company's stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is owned by company insiders.

Netflix Trading Down 2.7%

NASDAQ:NFLX opened at $76.02 on Tuesday. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $316.54 billion, a PE ratio of 23.93, a P/E/G ratio of 0.98 and a beta of 1.52. The stock's 50 day moving average price is $74.53 and its 200 day moving average price is $84.46. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last released 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 during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.72 EPS. On average, research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Analysts Set New Price Targets

Several brokerages have issued reports on NFLX. Morgan Stanley restated an "overweight" rating and issued a $90.00 target price (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on Netflix in a research report on Monday, July 20th. Pivotal Research reduced their price target on shares of Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research report on Friday, July 17th. The Goldman Sachs Group cut Netflix from an "underweight" rating to a "sell" rating in a research note on Monday, July 20th. Finally, KeyCorp reiterated an "overweight" rating and issued a $92.00 price target (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. 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 assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $103.48.

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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