EMC Capital Management Invests $2.50 Million in Netflix, Inc. $NFLX

Key Points

• EMC Capital Management initiated a $2.50 million Netflix position in the second quarter, purchasing 36,800 shares. Netflix now represents 1.0% of the firm’s portfolio, while institutional investors collectively own 80.93% of the stock.
• Netflix reported quarterly EPS of $0.80, slightly above expectations, while revenue reached $12.56 billion, up 13.4% year over year but just below consensus estimates. Analysts project full-year EPS of $3.59.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $96.65, despite several recent target reductions. Meanwhile, insiders sold shares primarily to cover tax obligations, with insiders owning 1.24% of the company.

EMC Capital Management bought a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 36,800 shares of the Internet television network's stock, valued at approximately $2,498,000. Netflix accounts for 1.0% of EMC Capital Management's investment portfolio, making the stock its 11th biggest holding.

Several other hedge funds also recently made changes to their positions in NFLX. Imprint Wealth LLC purchased a new position in Netflix during the third quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Netflix in the 4th quarter worth about $26,000. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix in the 2nd quarter worth about $26,000. Atlas Capital Advisors Inc. bought a new position in shares of Netflix in the 4th quarter worth about $26,000. Finally, Jessup Wealth Management Inc purchased a new position in Netflix during the 4th quarter valued at about $27,000. 80.93% of the stock is currently owned by institutional investors.

Netflix Stock Performance

Shares of NFLX stock opened at $82.73 on Thursday. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The company's 50-day moving average is $75.19 and its 200 day moving average is $84.40. The company has a market capitalization of $344.48 billion, a price-to-earnings ratio of 26.04, a price-to-earnings-growth ratio of 1.14 and a beta of 1.53. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during 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%. The business's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.72 earnings per share. Sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Activity at Netflix

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer directly owned 178,954 shares of the company's stock, valued at approximately $13,126,275.90. This represents a 13.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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, insider David A. Hyman sold 5,723 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. 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 213,595 shares of company stock valued at $15,812,072 over the last ninety days. Corporate insiders own 1.24% of the company's stock.

Analyst Ratings Changes

Several research firms recently commented on NFLX. China Intl Cap raised shares of Netflix to a "strong-buy" rating in a research note on Tuesday, July 21st. Stephens started coverage on shares of Netflix in a research note on Friday, July 17th. They set an "overweight" rating for the company. Loop Capital lowered their target price on shares of Netflix from $115.00 to $95.00 and set a "buy" rating for the company in a report on Friday, July 24th. Barclays dropped their price target on Netflix from $85.00 to $80.00 and set an "equal weight" rating on the stock in a research report on Friday, July 17th. Finally, Oppenheimer set a $85.00 price target on Netflix and gave the stock an "outperform" rating in a research note on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $96.65.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts and commentators view Netflix as attractively valued after its substantial pullback from its high. The company’s growing ad-supported business, strong cash generation and buyback program could support a long-term recovery. Netflix Is Down 46% From Its High
• Positive Sentiment: Netflix received an average “Moderate Buy” analyst rating, reinforcing the view that the recent weakness may represent an entry opportunity rather than a deterioration in the long-term investment case. Netflix Receives Moderate Buy Rating
• Positive Sentiment: A multi-year agreement with EverPass Media will distribute Netflix’s five 2026 NFL games, including a Thanksgiving Eve matchup, to commercial venues nationwide. The deal broadens the reach and monetization potential of Netflix’s live-sports programming. EverPass Media Expands NFL Offering Through Agreement with Netflix
• Neutral Sentiment: A partnership with Stella Artois tied to season two of The Gentlemen, along with strong attention generated by exclusive Grand Theft Auto VI preview footage on Netflix, supports engagement and advertising visibility but is unlikely to materially change near-term financial results. Netflix Unveils New Partnership
• Negative Sentiment: Investors remain concerned about slowing subscriber and revenue growth, competition from short-form video platforms and Netflix’s underperformance versus the broader market. These issues could limit multiple expansion despite the discounted valuation. Netflix: A Streaming Giant at a Rare Discount?

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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