Netflix, Inc. $NFLX Shares Bought by Retirement Systems of Alabama

Key Points

• Retirement Systems of Alabama increased its Netflix stake by 20% in the third quarter, adding 322,558 shares to bring its holdings to 1,933,969 shares, valued at about $134.6 million. Institutional investors and hedge funds collectively own 80.93% of the stock.
• Analyst views were mixed, but MarketBeat’s consensus rating was “Moderate Buy”, with an average price target of $89.14. Some firms cut their targets or downgraded their ratings.
• Netflix reported quarterly earnings of $0.87 per share, above estimates of $0.82, while revenue of $12.87 billion matched expectations and rose 11.9% year over year.

Retirement Systems of Alabama raised its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 20.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,933,969 shares of the Internet television network's stock after acquiring an additional 322,558 shares during the period. Retirement Systems of Alabama's holdings in Netflix were worth $134,566,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of NFLX. BlackRock Inc. acquired a new stake in Netflix during the second quarter worth about $24,902,221,000. State Street Corp lifted its holdings in Netflix by 4.9% in the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock valued at $12,861,252,000 after acquiring an additional 8,474,820 shares during the period. Bank of America Corp DE lifted its holdings in Netflix by 4.3% in the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock valued at $5,571,201,000 after acquiring an additional 2,376,349 shares during the period. Bank of New York Mellon Corp acquired a new position in Netflix in the second quarter valued at approximately $1,906,482,000. Finally, Legal & General Group Plc acquired a new stake in shares of Netflix during the 2nd quarter worth approximately $1,886,526,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on NFLX shares. Bank of America decreased their target price on shares of Netflix from $105.00 to $90.00 and set a "buy" rating for the company in a research note on Wednesday, October 21st. KeyCorp lowered their price target on shares of Netflix from $92.00 to $85.00 and set an "overweight" rating on the stock in a report on Tuesday, October 13th. Huber Research lowered shares of Netflix from a "buy" rating to an "underweight" rating in a research report on Tuesday, October 13th. Needham & Company LLC cut shares of Netflix from a "buy" rating to a "hold" rating in a report on Wednesday, October 21st. Finally, Argus set a $95.00 price objective on shares of Netflix and gave the company a "buy" rating in a report on Thursday, October 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $89.14.

Insider Buying and Selling at Netflix

In related news, insider David Hyman sold 5,727 shares of the company's stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $64.55, for a total transaction of $369,677.85. Following the completion of the transaction, the insider owned 166,100 shares in the company, valued at $10,721,755. This represents a 3.33% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard Barton sold 720 shares of the firm's stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction of $54,194.40. Following the completion of the transaction, the director directly owned 2,460 shares in the company, valued at $185,164.20. This represents a 22.64% decrease in their ownership of the stock. 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 have sold 61,712 shares of company stock valued at $4,051,144. Corporate insiders own 1.24% of the company's stock.

Netflix Trading Up 0.9%

Shares of NFLX stock opened at $63.95 on Tuesday. Netflix, Inc. has a 1-year low of $61.39 and a 1-year high of $116.73. The company has a market cap of $262.60 billion, a price-to-earnings ratio of 18.48, a PEG ratio of 0.97 and a beta of 1.62. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.07. The stock has a 50 day simple moving average of $70.68 and a 200-day simple moving average of $80.86.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.82 by $0.05. The firm had revenue of $12.87 billion for the quarter, compared to analysts' expectations of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The firm's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.59 EPS. On average, equities research analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Netflix Profile

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.

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