LM Advisors LLC Takes $1.39 Million Position in Netflix, Inc. $NFLX

Key Points

• LM Advisors LLC acquired 19,242 Netflix shares worth approximately $1.39 million in the second quarter. Institutional investors collectively own 80.93% of the company.
• Analyst sentiment remains generally positive but mixed: Netflix has a “Moderate Buy” consensus rating and an average price target of $103.48, despite recent target cuts and a new sell rating from Goldman Sachs.
• Netflix reported quarterly revenue growth of 13.4% year over year and slightly exceeded EPS estimates, while CEO Ted Sarandos and CFO Spencer Neumann sold shares under pre-arranged plans; the stock recently traded at $79.59, well below its 52-week high of $126.71.

LM Advisors LLC bought a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 19,242 shares of the Internet television network's stock, valued at approximately $1,385,000.

A number of other hedge funds and other institutional investors have also bought and sold shares of NFLX. Vanguard Group Inc. raised 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 valued at $36,567,805,000 after acquiring an additional 351,493,659 shares during the period. Shepherd Street Advisors LLC acquired a new position in shares of Netflix in the fourth quarter valued at approximately $2,216,000. Morse Asset Management Inc increased its stake in shares of Netflix by 809.3% during the fourth quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network's stock worth $6,069,000 after purchasing an additional 57,611 shares during the period. University of Texas Texas AM Investment Management Co. boosted its stake in Netflix by 798.5% in the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network's stock valued at $3,989,000 after purchasing an additional 37,807 shares during the period. Finally, New Mexico Educational Retirement Board grew its holdings in Netflix by 900.0% in the 4th quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network's stock valued at $18,022,000 after buying an additional 172,989 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

Key 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

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Barclays lowered their price objective on Netflix from $85.00 to $80.00 and set an "equal weight" rating on the stock in a research report on Friday, July 17th. The Goldman Sachs Group lowered shares of Netflix from an "underweight" rating to a "sell" rating in a research report on Monday, July 20th. KGI Securities cut shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective for the company. in a research note on Friday, July 17th. Bank of America reissued a "buy" rating and issued a $125.00 price objective on shares of Netflix in a report on Monday, May 18th. Finally, Citic Securities increased their target price on shares of Netflix from $95.00 to $107.00 and gave the stock a "hold" rating in a research report on Monday, April 27th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $103.48.

Insider Transactions at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the completion of the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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, CFO Spencer Adam Neumann sold 9,248 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the transaction, the chief financial officer owned 73,787 shares of the company's stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 600,295 shares of company stock worth $49,056,671. Corporate insiders own 1.24% of the company's stock.

Netflix Stock Performance

NFLX opened at $79.59 on Friday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $126.71. The firm has a market cap of $331.41 billion, a P/E ratio of 25.05, a price-to-earnings-growth ratio of 1.00 and a beta of 1.52. The business's fifty day moving average is $74.39 and its 200-day moving average is $84.34.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results 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 return on equity of 40.02% and a net margin of 28.22%.The business had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter in the previous year, the firm earned $0.72 earnings per share. Netflix's revenue for the quarter was up 13.4% compared to the same quarter last year. Sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

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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