Netflix, Inc. $NFLX Shares Bought by Sei Investments Co.

Key Points

• Sei Investments Co. increased its Netflix stake by 9.9% in the first quarter, buying an additional 470,424 shares and bringing its total holding to 5.23 million shares worth about $502.5 million.
• Netflix’s latest earnings beat EPS expectations, but revenue came in slightly below estimates and management warned that growth could slow to around 12% in Q3, adding to investor concerns.
• Sentiment around the stock has weakened, with analysts cutting price targets and some downgrading the shares; meanwhile, insiders sold a significant amount of stock over the last quarter.

Sei Investments Co. raised its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 9.9% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 5,226,023 shares of the Internet television network's stock after purchasing an additional 470,424 shares during the quarter. Sei Investments Co. owned 0.12% of Netflix worth $502,481,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of NFLX. Brighton Jones LLC boosted its holdings in shares of Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after acquiring an additional 257 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock worth $912,000 after purchasing an additional 144 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock worth $1,883,000 after purchasing an additional 246 shares during the last quarter. Strategic Investment Advisors MI lifted its position in Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after purchasing an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. lifted its position in Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after purchasing an additional 228 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix’s Q2 results beat EPS expectations, but revenue came in slightly below consensus and management signaled growth could slow to around 12% in Q3, raising concerns about momentum. Netflix Has Plummeted Over the Past Year and Just Dropped Again on Earnings. At 22 Times Profits, Is It a Buy?
• Negative Sentiment: Investors are also reacting to a “valuation reset” and weaker transparency after Netflix said it will report key viewership metrics less often, making it harder to measure progress. Is Netflix Asking Investors To Trust A Story It Will No Longer Tell?
• Negative Sentiment: The selloff has been amplified by bearish calls and articles arguing that sentiment remains weak, with some analysts saying the stock still has room to fall despite the recent drop. ‘Scratching the Surface,’ Says Top Investor About Netflix Stock
• Negative Sentiment: Netflix also completed a $1 billion senior notes offering to refinance debt, which is financially prudent but may reinforce the market’s focus on capital structure rather than growth. Netflix Issues $1 Billion Senior Notes to Refinance Debt

Insider Transactions at Netflix

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the transaction, the chief executive officer owned 120,931 shares in the company, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the firm'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 sale, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 899,839 shares of company stock worth $80,141,661 over the last quarter. Company insiders own 1.24% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. TD Cowen cut their price target on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a research report on Friday, July 17th. JPMorgan Chase & Co. decreased their price objective on Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Wells Fargo & Company set a $80.00 target price on Netflix and gave the stock an "equal weight" rating in a research note on Friday, July 17th. BMO Capital Markets downgraded Netflix from an "outperform" rating to a "market perform" rating in a research note on Monday. Finally, Wedbush dropped their target price on Netflix from $118.00 to $105.00 and set an "outperform" rating on the stock in a report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Netflix Stock Down 0.2%

NFLX stock opened at $68.53 on Thursday. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.41 and a current ratio of 1.14. The firm's fifty day moving average is $79.04 and its 200 day moving average is $86.31. The firm has a market cap of $285.35 billion, a PE ratio of 21.57, a P/E/G ratio of 0.86 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data 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. 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 the consensus estimate of $12.58 billion. During the same quarter in the prior year, the firm posted $0.72 earnings per share. The company's revenue was up 13.4% compared to the same quarter last year. On average, research analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Netflix 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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