Fund Advisors of America Inc FL Takes Position in Netflix, Inc. $NFLX

Key Points

• Fund Advisors of America Inc. FL bought 13,804 Netflix shares during the second quarter, worth approximately $986,000. Institutional investors and hedge funds collectively own 80.93% of Netflix.
• Netflix shares opened at $79.59, down 0.7%, with the stock trading well below its 52-week high of $126.71. The company’s latest quarter showed 13.4% year-over-year revenue growth and slightly exceeded EPS expectations.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $103.48 price target, although several firms recently lowered their targets. Meanwhile, insiders sold about $49.1 million of stock over the past 90 days.

Fund Advisors of America Inc FL bought a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 13,804 shares of the Internet television network's stock, valued at approximately $986,000.

Other hedge funds have also made changes to their positions in the company. Vanguard Group Inc. grew its stake in Netflix by 912.5% during the fourth 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. BlackRock Inc. bought a new position in shares of Netflix in the second quarter valued at approximately $24,902,221,000. State Street Corp boosted its holdings in shares of Netflix by 927.6% in 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 acquiring an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after acquiring an additional 89,558,684 shares in the last quarter. Finally, Capital World Investors grew its position in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
• Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
• Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
• Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
• Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
• Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals

Insiders Place Their Bets

In related news, Director Bradford L. Smith sold 35,990 shares of Netflix stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the sale, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,248 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 600,295 shares of company stock valued at $49,056,671 over the last 90 days. Corporate insiders own 1.24% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on NFLX. BMO Capital Markets reaffirmed an "outperform" rating on shares of Netflix in a report on Friday, August 14th. UBS Group decreased their target price on Netflix from $130.00 to $115.00 and set a "buy" rating on the stock in a report on Friday, July 17th. KeyCorp restated an "overweight" rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Citigroup reaffirmed a "market perform" rating on shares of Netflix in a report on Monday. Finally, 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. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $103.48.

Netflix Stock Down 0.7%

NASDAQ:NFLX opened at $79.59 on Friday. The company has a market cap of $331.41 billion, a price-to-earnings ratio of 25.05, a P/E/G ratio of 1.01 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock's fifty day moving average price is $74.39 and its two-hundred day moving average price is $84.34. 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 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 company had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business's revenue for the quarter was up 13.4% on a year-over-year basis. During the same period last year, the firm earned $0.72 EPS. On average, analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

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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