Netflix, Inc. $NFLX Shares Sold by Davidson Investment Advisors

Key Points

• Davidson Investment Advisors reduced its Netflix stake by 5.4% in the second quarter, selling 14,259 shares and retaining 249,653 shares valued at approximately $17.8 million. Institutional investors and hedge funds collectively own 80.93% of NFLX.
• Analysts maintain a generally positive outlook, with Netflix receiving a consensus “Moderate Buy” rating and an average price target of $103.19, although several firms recently lowered or adjusted their targets.
• Netflix reported quarterly EPS of $0.80, narrowly beating estimates, while revenue rose 13.4% year over year to $12.56 billion. However, insider selling has been significant, with insiders selling about $49.1 million of stock over the past 90 days.

Davidson Investment Advisors cut its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 5.4% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 249,653 shares of the Internet television network's stock after selling 14,259 shares during the period. Davidson Investment Advisors' holdings in Netflix were worth $17,825,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of NFLX. Imprint Wealth LLC purchased a new position in Netflix during the 3rd quarter worth $25,000. Wealth Watch Advisors INC purchased a new stake in shares of Netflix in the third quarter valued at about $103,000. Strategic Wealth Investment Group LLC acquired a new stake in shares of Netflix during the second quarter worth about $121,000. Wiser Advisor Group LLC acquired a new stake in shares of Netflix during the third quarter worth about $114,000. Finally, Beaird Harris Wealth Management LLC grew its holdings in shares of Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock worth $137,000 after buying an additional 10 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

More Netflix News

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

Several equities analysts recently issued reports on the company. China Intl Cap upgraded Netflix to a "strong-buy" rating in a research report on Tuesday, July 21st. Morgan Stanley reaffirmed an "overweight" rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. Guggenheim set a $75.00 target price on Netflix and gave the company a "buy" rating in a research note on Friday, July 17th. Moffett Nathanson cut their price target on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a research note on Wednesday, June 17th. Finally, Wolfe Research reaffirmed an "outperform" rating and set a $95.00 price target (up from $84.00) on shares of Netflix in a report on Tuesday. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $103.19.

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the company's stock in a transaction 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 transaction, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. This represents a 11.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard N. Barton sold 2,160 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the sale, the director owned 246 shares of the company's stock, valued at $18,474.60. This trade represents a 89.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by insiders.

Netflix Stock Performance

NASDAQ NFLX opened at $81.72 on Friday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The business's 50 day moving average is $74.65 and its two-hundred day moving average is $84.33. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The stock has a market capitalization of $340.28 billion, a price-to-earnings ratio of 25.72, a PEG ratio of 1.03 and a beta of 1.52.

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 the consensus estimate 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 analysts' expectations of $12.58 billion. During the same period last year, the firm earned $0.72 EPS. The company's quarterly revenue was up 13.4% compared to the same quarter last year. Research analysts expect 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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