Netflix, Inc. $NFLX Shares Bought by Thornburg Investment Management Inc.

Key Points

• Thornburg Investment Management increased its Netflix stake by 428.3% in the second quarter, adding 539,563 shares to own 665,548 shares valued at approximately $47.5 million.
• Institutional investors own 80.93% of Netflix, while insiders own 1.24%; executives and directors sold roughly 600,295 shares worth $49.1 million over the past 90 days, with no purchases reported.
• Netflix has a “Moderate Buy” consensus rating and an average price target of $103.19, despite mixed analyst views. Shares opened at $81.72, and the company’s latest quarterly revenue rose 13.4% year over year while EPS slightly exceeded estimates.

Thornburg Investment Management Inc. raised its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 428.3% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 665,548 shares of the Internet television network's stock after buying an additional 539,563 shares during the period. Thornburg Investment Management Inc.'s holdings in Netflix were worth $47,520,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in NFLX. Imprint Wealth LLC acquired a new position in shares of Netflix during the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in Netflix in the fourth quarter worth approximately $26,000. Clal Insurance Enterprises Holdings Ltd bought a new position in Netflix during the 2nd quarter valued at $26,000. Atlas Capital Advisors Inc. bought a new position in Netflix during the 4th quarter valued at $26,000. Finally, Jessup Wealth Management Inc bought a new position in Netflix during the 4th quarter valued at $27,000. 80.93% of the stock is currently owned by institutional investors.

Insider Transactions at Netflix

In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the business'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 of the company's stock, valued at $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,248 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 in the last ninety days. 1.24% of the stock is currently owned by insiders.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly added approximately 13.1 million Netflix shares, making NFLX one of the hedge fund’s new concentrated holdings. The move may bolster investor confidence in Netflix’s valuation and long-term earnings potential. Bill Ackman portfolio overhaul article
• Positive Sentiment: Analysts and market commentators point to Netflix’s rapidly expanding advertising business, a potential $3 billion advertising revenue opportunity, continued global expansion and margin growth as catalysts for a possible recovery toward $100 and beyond. Record share buybacks could further support earnings per share. Netflix stock price prediction article
• Positive Sentiment: Netflix is being described as an undervalued long-term holding, with bullish arguments centered on double-digit revenue growth, free-cash-flow generation and the ability to monetize live events and lower-priced ad-supported plans. Netflix five-year outlook article
• Neutral Sentiment: The Netflix preview of Grand Theft Auto VI attracted significant online attention and traffic, but the immediate stock-market beneficiary appears to be Take-Two Interactive, the game’s publisher, rather than Netflix. GTA 6 Netflix preview article
• Negative Sentiment: Some analysts argue that Netflix’s growth is moderating and that Alphabet offers stronger diversification, advertising exposure and valuation. Recent commentary also identifies resistance near $82 and muted enthusiasm following the latest earnings report. NFLX versus GOOGL article
• Negative Sentiment: Reported insider activity remains a potential overhang: executives and directors made numerous sales and no purchases over the past six months. Investors may interpret the selling as reduced insider conviction, although it may also reflect routine diversification. Netflix ad monetization and market resistance article

Analysts Set New Price Targets

NFLX has been the topic of a number of research reports. Seaport Research Partners downgraded Netflix from a "buy" rating to a "neutral" rating in a research note on Monday, July 20th. Guggenheim set a $75.00 target price on Netflix and gave the stock a "buy" rating in a report on Friday, July 17th. Citigroup reiterated a "market perform" rating on shares of Netflix in a research report on Monday, August 17th. China Intl Cap raised shares of Netflix to a "strong-buy" rating in a report on Tuesday, July 21st. Finally, The Goldman Sachs Group lowered shares of Netflix from an "underweight" rating to a "sell" rating in a research report on Monday, July 20th. 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 issued a Sell rating to the company. Based on data from MarketBeat, Netflix has a consensus rating of "Moderate Buy" and a consensus target price of $103.19.

Netflix Trading Up 2.4%

Shares of NASDAQ NFLX opened at $81.72 on Friday. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a market cap of $340.28 billion, a price-to-earnings ratio of 25.72, a P/E/G ratio of 1.03 and a beta of 1.52. The business has a fifty day simple moving average of $74.65 and a 200-day simple moving average of $84.33.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business's revenue was up 13.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.72 EPS. Sell-side analysts predict 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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