Fulcrum Asset Management LLP Makes New $1.58 Million Investment in Netflix, Inc. $NFLX

Key Points

• Fulcrum Asset Management acquired 21,450 Netflix shares during the second quarter, worth approximately $1.58 million. Institutional investors and hedge funds collectively own 80.93% of Netflix’s stock.
• Netflix reported quarterly EPS of $0.80, slightly above estimates, while revenue rose 13.4% year over year to $12.56 billion. The stock opened at $81.72, within a 12-month range of $65.08 to $126.71.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $103.19, although targets range from $75 to $100 after several firms revised their forecasts. Insider selling has also continued, including substantial recent sales by the CEO and a director.

Fulcrum Asset Management LLP acquired a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 21,450 shares of the Internet television network's stock, valued at approximately $1,583,000.

Several other large investors also recently modified their holdings of the company. Brighton Jones LLC boosted its position in Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after acquiring an additional 257 shares during the last quarter. Revolve Wealth Partners LLC raised its position in shares of Netflix by 16.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock worth $912,000 after acquiring an additional 144 shares in the last quarter. Sivia Capital Partners LLC lifted its stake in shares of Netflix by 21.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after purchasing an additional 246 shares during the period. Strategic Investment Advisors MI lifted its stake in shares of Netflix by 18.9% in the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after purchasing an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. boosted its position in shares of Netflix by 12.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after purchasing an additional 228 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $81.72 on Friday. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The firm has a market capitalization of $340.28 billion, a price-to-earnings ratio of 25.72, a PEG ratio of 1.00 and a beta of 1.52. The stock's 50 day moving average is $74.65 and its 200-day moving average is $84.33. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the firm posted $0.72 earnings per share. The firm's revenue for the quarter was up 13.4% on a year-over-year basis. Sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Wolfe Research reaffirmed an "outperform" rating and set a $95.00 target price (up from $84.00) on shares of Netflix in a research note on Tuesday. Sanford C. Bernstein set a $95.00 price target on Netflix and gave the company an "outperform" rating in a research note on Friday, July 17th. TD Cowen cut their price target on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Rosenblatt Securities set a $75.00 price objective on shares of Netflix and gave the stock a "neutral" rating in a research report on Friday, July 17th. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $103.19.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly added approximately 13.1 million Netflix shares, making NFLX one of the hedge fund’s new concentrated holdings. The move may bolster investor confidence in Netflix’s valuation and long-term earnings potential. Bill Ackman portfolio overhaul article
• Positive Sentiment: Analysts and market commentators point to Netflix’s rapidly expanding advertising business, a potential $3 billion advertising revenue opportunity, continued global expansion and margin growth as catalysts for a possible recovery toward $100 and beyond. Record share buybacks could further support earnings per share. Netflix stock price prediction article
• Positive Sentiment: Netflix is being described as an undervalued long-term holding, with bullish arguments centered on double-digit revenue growth, free-cash-flow generation and the ability to monetize live events and lower-priced ad-supported plans. Netflix five-year outlook article
• Neutral Sentiment: The Netflix preview of Grand Theft Auto VI attracted significant online attention and traffic, but the immediate stock-market beneficiary appears to be Take-Two Interactive, the game’s publisher, rather than Netflix. GTA 6 Netflix preview article
• Negative Sentiment: Some analysts argue that Netflix’s growth is moderating and that Alphabet offers stronger diversification, advertising exposure and valuation. Recent commentary also identifies resistance near $82 and muted enthusiasm following the latest earnings report. NFLX versus GOOGL article
• Negative Sentiment: Reported insider activity remains a potential overhang: executives and directors made numerous sales and no purchases over the past six months. Investors may interpret the selling as reduced insider conviction, although it may also reflect routine diversification. Netflix ad monetization and market resistance article

Insider Activity

In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the sale, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard N. Barton sold 2,160 shares of the firm's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the transaction, the director owned 246 shares in the company, valued at $18,474.60. This represents a 89.78% decrease in their position. 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. In the last three months, insiders sold 600,295 shares of company stock worth $49,056,671. Company insiders own 1.24% of the company's stock.

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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