Netflix, Inc. $NFLX Shares Purchased by RFG Advisory LLC

Key Points

• RFG Advisory increased its Netflix stake by 37.1% in the second quarter, owning 205,693 shares valued at approximately $14.7 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix shares were trading at $76.77, down 1.9%, despite the company beating quarterly EPS estimates and reporting 13.4% year-over-year revenue growth. Analysts maintain a “Moderate Buy” consensus with an average price target of $96.65.
• Investor sentiment remains mixed: bullish factors include improving free cash flow, advertising and live-event opportunities, while insider selling, weak growth-stock appetite and a South African pricing investigation pose risks.

RFG Advisory LLC raised its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 37.1% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 205,693 shares of the Internet television network's stock after acquiring an additional 55,678 shares during the period. RFG Advisory LLC's holdings in Netflix were worth $14,686,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of NFLX. California State Teachers Retirement System increased its holdings in shares of Netflix by 7,028.2% in the second quarter. California State Teachers Retirement System now owns 458,934,710 shares of the Internet television network's stock valued at $32,767,938,000 after purchasing an additional 452,496,424 shares during the last quarter. BlackRock Inc. acquired a new position in Netflix during the second quarter worth $24,902,221,000. State Street Corp grew its holdings in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after buying an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC grew its holdings in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after buying an additional 89,558,684 shares in the last quarter. Finally, Capital World Investors increased its stake in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts and investors view the selloff as a potential buying opportunity. Recent coverage highlights Netflix’s improving free-cash-flow yield, while published price targets remain materially above the current quotation, with a reported median target of $115. Netflix: The Best Free Cash Flow Yield In A Decade
• Positive Sentiment: Netflix is reportedly releasing box-office figures for six upcoming films, including Narnia: The Magician’s Nephew and Charlie and the Chocolate Factory. Greater theatrical transparency could support interest in its film strategy and help evaluate content economics. Netflix Movie-Theater Strategy
• Positive Sentiment: Pershing Square reportedly added Netflix shares in the second quarter, and bullish commentary points to content momentum, advertising and live-event opportunities as potential recovery catalysts. Bill Ackman’s Netflix Investment
• Neutral Sentiment: Discussion that Netflix could be broken into separate streaming, studio, advertising, gaming or live-event businesses appears unlikely to drive near-term trading; the company’s integrated model is viewed as central to its value. Why Netflix’s Breakup May Not Work
• Negative Sentiment: South African regulators are investigating consumer pricing for digital streaming services. The probe raises the risk of pricing restrictions, higher compliance costs or limits on future subscription increases. Netflix Faces South Africa Price Probe
• Negative Sentiment: Recent coverage also cites weak risk appetite across growth and media stocks, concerns about quarterly revenue and forward guidance, and extensive insider selling. These factors are weighing on sentiment despite Netflix’s profitable business and year-over-year revenue growth. Netflix Suffers a Larger Drop Than the General Market

Insider Buying and Selling

In other news, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value 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 represents a 11.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider David A. Hyman sold 5,723 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $23,027,885. The trade was a 1.78% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 213,595 shares of company stock valued at $15,812,072 over the last 90 days. 1.24% of the stock is currently owned by corporate insiders.

Netflix Trading Down 1.9%

NASDAQ NFLX opened at $76.77 on Wednesday. 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 52 week low of $65.08 and a 52 week high of $126.70. The stock has a market capitalization of $319.67 billion, a PE ratio of 24.16, a price-to-earnings-growth ratio of 1.10 and a beta of 1.53. The firm has a 50 day moving average of $75.71 and a two-hundred day moving average of $84.45.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company's revenue was up 13.4% on a year-over-year basis. During the same period last year, the business earned $0.72 EPS. As a group, research analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. CICC Research lowered their price target on shares of Netflix from $110.00 to $90.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 21st. President Capital reduced their target price on shares of Netflix from $134.00 to $83.00 and set a "buy" rating on the stock in a research note on Monday, July 20th. China Intl Cap upgraded shares of Netflix to a "strong-buy" rating in a report on Tuesday, July 21st. Barclays dropped their price target on shares of Netflix from $85.00 to $80.00 and set an "equal weight" rating for the company in a research note on Friday, July 17th. Finally, Phillip Securities upgraded Netflix from a "moderate buy" rating to a "strong-buy" rating and set a $110.00 price objective on the stock in a report on Sunday, July 19th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $96.65.

Netflix Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.

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