Generate Investment Management Ltd Increases Stock Position in Netflix, Inc. $NFLX

Key Points

• Generate Investment Management Ltd boosted its Netflix stake by 46.9% in the first quarter, adding 149,242 shares to bring its total holdings to 467,711 shares worth about $44.97 million.
• Netflix shares were down 5.8%, with the stock opening at $72.88 and trading near its 52-week low of $71.81, even as the company’s most recent earnings beat expectations on both EPS and revenue.
• Analysts remain broadly positive, with Netflix carrying a Moderate Buy consensus rating and an average price target of $114.26, though insider selling and concern over the recent selloff have weighed on sentiment.

Generate Investment Management Ltd raised its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 46.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 467,711 shares of the Internet television network's stock after purchasing an additional 149,242 shares during the period. Netflix makes up about 2.2% of Generate Investment Management Ltd's investment portfolio, making the stock its 11th largest holding. Generate Investment Management Ltd's holdings in Netflix were worth $44,970,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Imprint Wealth LLC bought a new position in shares of Netflix during the third quarter valued at $25,000. Bare Financial Services Inc increased its holdings in Netflix by 93.3% in the 3rd quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network's stock worth $35,000 after buying an additional 14 shares in the last quarter. Horizon Financial Services LLC increased its holdings in Netflix by 480.0% in the 3rd quarter. Horizon Financial Services LLC now owns 29 shares of the Internet television network's stock worth $35,000 after buying an additional 24 shares in the last quarter. Promus Capital LLC purchased a new position in Netflix in the 3rd quarter worth about $48,000. Finally, Aviso Financial Inc. raised its position in Netflix by 40.0% in the 3rd quarter. Aviso Financial Inc. now owns 42 shares of the Internet television network's stock worth $50,000 after buying an additional 12 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

Netflix Stock Down 5.8%

NFLX stock opened at $72.88 on Tuesday. The company has a market cap of $306.88 billion, a price-to-earnings ratio of 23.54, a P/E/G ratio of 0.98 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The business's 50-day moving average is $88.30 and its two-hundred day moving average is $89.75. Netflix, Inc. has a fifty-two week low of $71.81 and a fifty-two week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the previous year, the company posted $6.61 EPS. The business's quarterly revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have issued reports on NFLX shares. Piper Sandler restated an "overweight" rating and set a $115.00 target price (up from $103.00) on shares of Netflix in a research note on Friday, April 17th. Weiss Ratings raised shares of Netflix from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 4th. Moffett Nathanson decreased their price objective on shares of Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Seaport Research Partners increased their price objective on shares of Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a research report on Friday, April 17th. Finally, Guggenheim restated a "buy" rating and issued a $120.00 target price on shares of Netflix in a report on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Netflix has an average rating of "Moderate Buy" and a consensus target price of $114.26.

Insider Buying and Selling

In related news, Director Bradford L. Smith sold 35,990 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company's stock, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 28,630 shares of the business's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $98.00, for a total transaction of $2,805,740.00. Following the sale, the chief financial officer owned 73,787 shares of the company's stock, valued at $7,231,126. This trade represents a 27.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,349,019 shares of company stock valued at $123,105,721 in the last 90 days. 1.24% of the stock is owned by insiders.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix expanded its video podcast partnership with iHeartMedia, adding more iHeartPodcasts as video shows on the platform and strengthening its content offering. Netflix Expands Video Podcast Partnership with iHeartMedia
• Positive Sentiment: Netflix bought a “Hot Ones” spinoff, a content deal that reinforces its rivalry with YouTube and supports its push into popular creator-driven programming. Netflix Buys a ‘Hot Ones’ Spinoff
• Neutral Sentiment: Some commentary argues Netflix may look undervalued after the recent selloff, with analysts still seeing upside if the business continues to execute. Is Netflix Inc (NFLX) a Bargain After 5.8% Drop? GF Value Says Undervalued
• Negative Sentiment: Investor sentiment was hurt by reports that Netflix was outbid or passed over on major acquisition targets, fueling concern that the company is missing strategic growth opportunities. After Missing Out on Roku, Netflix Claims It Won't Buy Lionsgate. Here's Why the Market Hates That Answer.
• Negative Sentiment: Analysts and market commentators warned against “catching the falling knife,” reflecting concern that NFLX could remain under pressure after breaking to new lows. Netflix Stock Slump Continues: Citizens JMP Warns Against Catching the Falling Knife

Netflix Company 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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