Netflix, Inc. $NFLX Stake Lowered by Sapient Capital LLC

Key Points

• Sapient Capital cut its Netflix stake by 42.8% in the first quarter, selling 356,225 shares and retaining 475,903 shares valued at approximately $45.8 million.
• Netflix insiders sold 492,289 shares worth about $42.2 million over the past 90 days, including substantial sales by directors Bradford Smith and Reed Hastings.
• Netflix narrowly exceeded quarterly EPS expectations, reporting $0.80 versus $0.79 expected, while revenue rose 13.4% year over year to $12.56 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48.

Sapient Capital LLC trimmed its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 42.8% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 475,903 shares of the Internet television network's stock after selling 356,225 shares during the period. Netflix comprises approximately 0.7% of Sapient Capital LLC's portfolio, making the stock its 23rd biggest holding. Sapient Capital LLC's holdings in Netflix were worth $45,753,000 as of its most recent filing with the Securities and Exchange Commission.

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

Insiders Place Their Bets

In related news, Director Bradford L. Smith sold 35,990 shares of the business's stock in a transaction on Wednesday, June 17th. The stock was 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 $6,177,568.80. The trade was a 31.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the company's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the completion of the sale, the director owned 3,940 shares in the company, valued at $338,721.80. This trade represents a 98.99% 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 sold a total of 492,289 shares of company stock worth $42,186,530 in the last 90 days. 1.24% of the stock is owned by corporate insiders.

Netflix Stock Performance

NASDAQ NFLX opened at $71.71 on Monday. The stock has a market cap of $298.60 billion, a P/E ratio of 22.57, a PEG ratio of 0.90 and a beta of 1.52. The company's 50-day simple moving average is $76.66 and its 200 day simple moving average is $85.38. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. 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 (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.72 earnings per share. As a group, research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix agreed to a five-year, approximately $500 million licensing deal covering all 371 episodes of The Walking Dead universe in international markets. The agreement strengthens Netflix’s global content lineup and adds a recognizable franchise beginning in 2027. Los Angeles Times article
• Positive Sentiment: Walmart-owned Flipkart is offering qualifying loyalty members a monthly Netflix mobile subscription after four orders in a month. The partnership could support customer acquisition and engagement in India, although the direct financial impact appears limited. Reuters article

Analyst Ratings Changes

NFLX has been the subject of several analyst reports. The Goldman Sachs Group lowered shares of Netflix from an "underweight" rating to a "sell" rating in a research note on Monday, July 20th. DZ Bank reissued a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Weiss Ratings lowered Netflix from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. CLSA assumed coverage on Netflix in a research report on Monday, July 20th. They issued an "outperform" rating for the company. Finally, Robert W. Baird set a $90.00 price target on Netflix and gave the stock an "outperform" rating in a research note on Wednesday, July 22nd. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $103.48.

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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