Netflix, Inc. $NFLX Shares Sold by Renaissance Technologies LLC

Key Points

• Renaissance Technologies completely exited nearly its entire Netflix position, selling 7.18 million shares in the first quarter and retaining just 2,461 shares worth about $235,000. Institutional investors still own approximately 80.93% of Netflix.
• Netflix reported quarterly EPS of $0.80, narrowly beating estimates, while revenue rose 13.4% year over year to $12.56 billion. The stock opened at $80.22, with a market capitalization of roughly $334 billion.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and average price target of $103.48, although several firms recently downgraded the shares or lowered targets. Company insiders have also sold more than $49 million of stock over the past 90 days.

Renaissance Technologies LLC trimmed its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 100.0% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,461 shares of the Internet television network's stock after selling 7,175,826 shares during the period. Renaissance Technologies LLC's holdings in Netflix were worth $235,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Turning Point Benefit Group Inc. lifted its holdings in shares of Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares during the period. Imprint Wealth LLC bought a new position in Netflix during the third quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new position in Netflix during the fourth quarter worth about $26,000. Atlas Capital Advisors Inc. acquired a new position in Netflix during the fourth quarter worth about $26,000. Finally, Jessup Wealth Management Inc bought a new stake in Netflix in the fourth quarter worth about $27,000. 80.93% of the stock is owned by institutional investors.

Netflix Stock Up 3.2%

Netflix stock opened at $80.22 on Thursday. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market cap of $334.03 billion, a PE ratio of 25.25, a P/E/G ratio of 0.98 and a beta of 1.52. The firm's 50 day moving average price is $74.43 and its two-hundred day moving average price is $84.39.

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 net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion for the quarter, compared to analysts' expectations of $12.58 billion. During the same period in the previous year, the company posted $0.72 EPS. Netflix's revenue was up 13.4% on a year-over-year basis. On average, research analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Erste Group Bank downgraded shares of Netflix from a "buy" rating to a "hold" rating in a report on Monday, April 27th. KGI Securities cut shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a research note on Friday, July 17th. Seaport Research Partners downgraded shares of Netflix from a "buy" rating to a "neutral" rating in a report on Monday, July 20th. Jefferies Financial Group cut their target price on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research note on Wednesday, June 10th. Finally, Daiwa Securities Group raised their target price on shares of Netflix from $97.00 to $102.00 and gave the stock an "outperform" rating in a report on Thursday, April 23rd. 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 company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $103.48.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returns: Pershing Square disclosed a roughly 4.9% portfolio position in Netflix, reversing its earlier exit at a reported loss of about $400 million. Ackman’s renewed conviction reflects expectations for double-digit revenue growth, margin expansion and continued streaming leadership. What's Going On With Netflix Stock Wednesday?
• Positive Sentiment: Advertising remains a growth catalyst: Analysts highlighted Netflix’s rapidly scaling ad-supported business, including new advertising tools and live programming that could help generate billions in ad revenue and support longer-term revenue expansion. NFLX's Ad Business Focus
• Positive Sentiment: Valuation attracts bargain hunters: With the stock down about 43% from its peak and trading near 21 times forward earnings, investors are comparing Netflix’s valuation with prior major pullbacks and arguing that the risk-reward profile has improved. Several commentators and CNBC’s Jason Snipe also endorsed the shares. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Broader market rotation helped: Netflix participated in a shift away from semiconductor stocks and toward beaten-down software and technology shares. This suggests part of the move reflected sector positioning rather than a new company-specific operating announcement. Netflix, Salesforce, and Adobe Rally
• Negative Sentiment: Copyright lawsuit adds risk: The band Demon Hunter sued Netflix over the title and alleged intellectual-property issues involving KPop Demon Hunters. The legal action introduces potential costs and reputational risk, although its financial impact is currently unclear. Netflix sued by band Demon Hunter

Insider Transactions at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the firm's stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the sale, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. This trade represents a 18.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of Netflix stock in a transaction dated 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 sale, the director owned 79,690 shares of the company's stock, valued at approximately $6,177,568.80. This represents 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. Over the last ninety days, insiders have sold 600,295 shares of company stock valued at $49,056,671. Corporate insiders own 1.24% of the company's stock.

About Netflix

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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