Investidor Profissional Gestao de Recursos Ltda. Sells 46,179 Shares of Netflix, Inc. $NFLX

Key Points

• Investidor Profissional Gestao de Recursos Ltda. cut its Netflix stake by 50.7% in the first quarter, selling 46,179 shares and leaving it with 44,970 shares valued at about $4.3 million.
• Insider selling has been heavy at Netflix, including large Rule 10b5-1 sales by directors Reed Hastings and Bradford L. Smith; insiders sold 899,839 shares worth about $80.1 million over the last 90 days.
• Netflix’s latest quarter beat EPS estimates by a penny and revenue rose 13.4% year over year, but the stock has been under pressure and still trades near its 52-week low despite mixed-to-bullish analyst sentiment.

Investidor Profissional Gestao de Recursos Ltda. lowered its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 50.7% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 44,970 shares of the Internet television network's stock after selling 46,179 shares during the period. Netflix makes up approximately 1.4% of Investidor Profissional Gestao de Recursos Ltda.'s holdings, making the stock its 13th biggest position. Investidor Profissional Gestao de Recursos Ltda.'s holdings in Netflix were worth $4,324,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in NFLX. Vanguard Group Inc. lifted its holdings in Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp grew its holdings in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC grew its holdings in Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors grew its holdings in Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley raised its position in shares of Netflix by 903.0% in the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock valued at $8,002,414,000 after purchasing an additional 76,840,318 shares during the period. Institutional investors own 80.93% of the company's stock.

Insider Activity

In other Netflix news, Director Reed Hastings sold 407,550 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the transaction, the director owned 3,940 shares of the company's stock, valued at $366,932.20. This represents a 99.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 35,990 shares of the company'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 completion of the transaction, the director directly 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 position. The disclosure for this sale is available in the SEC filing. 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 valued at $80,141,661. Corporate insiders own 1.24% of the company's stock.

Netflix Stock Performance

NASDAQ NFLX opened at $68.67 on Wednesday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.41. The firm has a market capitalization of $285.94 billion, a price-to-earnings ratio of 21.61, a P/E/G ratio of 0.85 and a beta of 1.52. The company's fifty day moving average is $79.42 and its two-hundred day moving average is $86.49. 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 announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the business earned $0.72 earnings per share. The firm's revenue for the quarter was up 13.4% on a year-over-year basis. Equities research analysts forecast that Netflix, Inc. will post 3.6 EPS for the current year.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix delivered an earnings beat and continues to post double-digit revenue growth, while bulls argue the selloff has made the stock look inexpensive on earnings and cash flow. Netflix “Is Not a Broken Company” and Trades At Just 19x Earnings. Jim Cramer Says Start Buying
• Positive Sentiment: Several analysts and commentators say the post-earnings drop may have created a buying opportunity, citing Netflix’s ad business, live content ambitions, international growth, and strong free-cash-flow potential. Netflix (NFLX) Stock Still Looks Cheap On Cash Flow And Earnings
• Positive Sentiment: Phillip Securities upgraded Netflix from “moderate buy” to “strong-buy,” with one analyst saying engagement shows no signs of slowing and setting a higher price target than the current trading level. Netflix, Inc. (NFLX) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Wall Street coverage remains active and largely mixed-to-bullish, with some reports pointing to meaningful upside in consensus price targets even after the recent slide. Netflix Fell 45% Over 12 Months But This Ratings House Sees A Doubling Share Price
• Negative Sentiment: Investors are worried about softer revenue guidance, slowing growth momentum, and Netflix making viewership metrics harder to track, which raises questions about transparency and future monetization. Netflix (NFLX) Could Be 18% Undervalued After Soft Guidance Raised Fresh Growth Questions
• Negative Sentiment: Multiple articles described the stock’s recent action as a sharp post-earnings crash or “miserable stretch,” reflecting concern that the latest quarter did not convince investors that growth will reaccelerate soon. Netflix just made its slowdown harder to measure

Analyst Ratings Changes

A number of brokerages have recently weighed in on NFLX. New Street Research boosted their price objective on shares of Netflix from $96.00 to $102.00 in a research note on Friday, April 17th. Stephens began coverage on shares of Netflix in a research note on Friday. They issued an "overweight" rating on the stock. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the stock an "equal weight" rating in a report on Friday. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Netflix in a research report on Monday. Finally, Weiss Ratings cut shares of Netflix from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $104.21.

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.

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