Independent Financial Group LLC Takes $7.02 Million Position in Netflix, Inc. $NFLX

Key Points

• Independent Financial Group LLC opened a new position in Netflix during the first quarter, buying 73,016 shares valued at about $7.02 million.
• Netflix reported strong Q2 results, with earnings of $0.80 per share beating estimates and revenue rising 13.4% year over year to $12.56 billion.
• Despite the earnings beat, investor and analyst sentiment is mixed: insiders have sold shares recently, and Wall Street’s consensus remains only a Moderate Buy with an average price target of $111.17.

Independent Financial Group LLC purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 73,016 shares of the Internet television network's stock, valued at approximately $7,020,000.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. First Financial Corp IN lifted its stake in Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. increased its holdings in shares of Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock worth $25,000 after acquiring an additional 239 shares during the period. Turning Point Benefit Group Inc. lifted its position in Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new position in Netflix during the 3rd quarter valued at about $25,000. Finally, Cornerstone Financial Management LLC bought a new position in Netflix in the 4th quarter worth about $26,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Stock Up 0.9%

NASDAQ NFLX opened at $74.35 on Friday. Netflix, Inc. has a 12 month low of $70.86 and a 12 month high of $127.75. The company has a market capitalization of $313.07 billion, a P/E ratio of 24.01, a PEG ratio of 0.94 and a beta of 1.52. The company's 50 day simple moving average is $80.52 and its 200 day simple moving average is $87.03. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

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 for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the firm posted $0.72 earnings per share. Equities research analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total value of $2,422,301.28. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at $10,725,370.39. This trade represents a 18.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, 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 transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This represents a 31.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 899,839 shares of company stock worth $80,141,661. Corporate insiders own 1.24% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Bank of America restated a "buy" rating and issued a $125.00 price target on shares of Netflix in a research note on Monday, May 18th. The Goldman Sachs Group downgraded Netflix from a "neutral" rating to an "underweight" rating in a research note on Thursday, June 18th. Jefferies Financial Group reduced their price target on Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research report on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft raised their price target on Netflix from $98.00 to $100.00 and gave the company a "hold" rating in a report on Tuesday, April 14th. Finally, KeyCorp reaffirmed an "overweight" rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $111.17.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix beat Q2 earnings estimates, reporting $0.80 EPS versus $0.79 expected, and revenue still grew 13% year over year. Netflix (NFLX) Surpasses Q2 Earnings Estimates
• Positive Sentiment: Management highlighted continued progress in advertising and said AI is helping lower content-production costs, with Ted Sarandos noting AI has been used across about 300 productions. Netflix Content Spend Accelerates, As Do Savings From AI
• Neutral Sentiment: Analysts such as Evercore ISI’s Mark Mahaney remain constructive, citing margin expansion, ad growth, and stable engagement as reasons for upside potential. Mark Mahaney Reiterates Buy on Netflix
• Neutral Sentiment: Netflix said it will reduce how often it publishes viewing-hour data, moving its “What We Watched” report to annual updates, which has added to investor uncertainty about engagement trends. Netflix third-quarter earnings forecast falls shy of Wall Street expectations
• Negative Sentiment: The weak Q3 forecast suggests slowing momentum and reinforces fears that subscriber engagement and growth are cooling. Netflix shares slide on disappointing growth forecasts
• Negative Sentiment: Multiple reports flagged concern that Netflix’s growth engine may be weakening, with investors worried about lower engagement, softer content traction, and increasing competition. Netflix's next growth chapter hinges on keeping viewers hooked

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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