Jefferies Financial Group Inc. Purchases 29,340 Shares of Netflix, Inc. $NFLX

Key Points

• Jefferies Financial Group increased its Netflix stake by 8.2% in the second quarter, purchasing 29,340 additional shares and bringing its total holdings to 388,271 shares valued at approximately $27.7 million.
• Netflix reported quarterly EPS of $0.80, narrowly exceeding estimates, while revenue rose 13.4% year over year to $12.56 billion but slightly missed expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.19.
• Insider activity has been heavily weighted toward selling: executives sold 600,295 shares worth roughly $49.1 million over the past 90 days, while institutional investors own 80.93% of the company.

Jefferies Financial Group Inc. raised its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 8.2% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 388,271 shares of the Internet television network's stock after buying an additional 29,340 shares during the quarter. Jefferies Financial Group Inc.'s holdings in Netflix were worth $27,723,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the business. Turning Point Benefit Group Inc. lifted its position in Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 268 shares during the period. Imprint Wealth LLC bought a new stake in Netflix during the third quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new stake in Netflix in the fourth quarter worth about $26,000. Clal Insurance Enterprises Holdings Ltd purchased a new stake in Netflix in the second quarter worth about $26,000. Finally, Atlas Capital Advisors Inc. bought a new position in shares of Netflix during the fourth quarter valued at approximately $26,000. Institutional investors own 80.93% of the company's stock.

Netflix Stock Down 2.0%

NFLX stock opened at $79.84 on Friday. The stock has a market capitalization of $332.45 billion, a P/E ratio of 25.13, a P/E/G ratio of 1.02 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $126.71. The business has a fifty day moving average price of $74.56 and a 200-day moving average price of $84.35.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data 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. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company had revenue of $12.56 billion for the quarter, compared to analysts' expectations of $12.58 billion. During the same period last year, the firm posted $0.72 earnings per share. Netflix's revenue was up 13.4% compared to the same quarter last year. Equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the firm's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares of the company's stock, valued at $15,063,605.98. This trade represents a 33.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the sale, the chief executive officer 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 SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Phillip Securities upgraded shares of Netflix from a "moderate buy" rating to a "strong-buy" rating in a report on Sunday, July 19th. Citigroup reaffirmed a "market perform" rating on shares of Netflix in a research report on Monday, August 17th. UBS Group lowered their price objective on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a research note on Friday, July 17th. Wolfe Research reissued an "outperform" rating and issued a $95.00 target price (up from $84.00) on shares of Netflix in a report on Tuesday. Finally, CLSA began coverage on Netflix in a research note on Monday, July 20th. They issued an "outperform" rating on the stock. Four equities 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 stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $103.19.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s advertising strategy remains a potential earnings catalyst. The company is targeting roughly $3 billion in advertising revenue, while expanding ad-supported plans globally and incorporating live events to improve monetization. Netflix Stock Opinions on Ad Monetization and Market Resistance
• Positive Sentiment: Analyst support and a stronger content lineup are helping underpin the recovery narrative. Wolfe Research recently raised its price target to $95, while reports of a Netflix-related Grand Theft Auto VI preview and other upcoming releases could support engagement and subscriber monetization. Jim Cramer Says Netflix Worth the Risk as Wolfe Raises Price Target to $95
• Neutral Sentiment: The stock has historically attracted buyers near its current technical floor, and it has recovered more than 21% from a recent low. However, investors are watching whether the rebound can break through resistance and develop into a sustained advance. NFLX Has Bounced From This Price Before. Now What?
• Neutral Sentiment: Netflix continues to post solid fundamentals: latest quarterly revenue rose 13.4% year over year to $12.56 billion, while earnings modestly exceeded expectations. The slight revenue miss and debate over slowing growth, however, have limited investor enthusiasm.
• Negative Sentiment: Relative weakness is notable because Netflix declined even as the broader market advanced. Analysts increasingly view Alphabet as having an edge because of its faster-growing, diversified advertising business and lower valuation, raising concerns about Netflix’s multiple and future growth rate. NFLX vs. GOOGL: Which Streaming and Ad Stock Has an Edge Right Now?
• Negative Sentiment: Reported insider activity has been heavily skewed toward selling, with no insider purchases and multiple sales by executives and directors over the past six months. While such transactions do not necessarily signal deteriorating operations, they can weigh on sentiment during a technical pullback. Netflix Insider Trading and Market Resistance

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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