Northwestern Mutual Wealth Management Co. Makes New Investment in Netflix, Inc. $NFLX

Key Points

• Northwestern Mutual Wealth Management acquired 666,865 Netflix shares during the second quarter, valued at approximately $47.6 million.
• Institutional investors own 80.93% of Netflix, while the stock opened at $79.59 and trades below its 52-week high of $126.71. The company’s latest quarterly revenue rose 13.4% year over year, and EPS narrowly exceeded analyst expectations.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $103.48, although Netflix insiders—including the CEO and CFO—recently sold shares.

Northwestern Mutual Wealth Management Co. acquired a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 666,865 shares of the Internet television network's stock, valued at approximately $47,614,000.

Several other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the last quarter. Shepherd Street Advisors LLC acquired a new position in shares of Netflix during the 4th quarter valued at about $2,216,000. Morse Asset Management Inc boosted its position in shares of Netflix by 809.3% during the 4th quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network's stock valued at $6,069,000 after acquiring an additional 57,611 shares during the last quarter. University of Texas Texas AM Investment Management Co. raised its stake in Netflix by 798.5% during the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network's stock worth $3,989,000 after purchasing an additional 37,807 shares during the period. Finally, New Mexico Educational Retirement Board boosted its holdings in Netflix by 900.0% in the 4th quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network's stock valued at $18,022,000 after purchasing an additional 172,989 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Stock Performance

NASDAQ:NFLX opened at $79.59 on Friday. 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 stock has a market capitalization of $331.41 billion, a P/E ratio of 25.05, a PEG ratio of 1.00 and a beta of 1.52. The company has a 50 day moving average price of $74.39 and a 200 day moving average price of $84.34. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71.

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

Analyst Ratings Changes

Several analysts have recently weighed in on NFLX shares. Robert W. Baird set a $90.00 price target on shares of Netflix and gave the company an "outperform" rating in a research note on Wednesday, July 22nd. Raymond James Financial reiterated a "market perform" rating on shares of Netflix in a report on Thursday, May 14th. Moffett Nathanson lowered their price objective on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. JPMorgan Chase & Co. cut their target price on Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a research note on Friday, July 17th. Finally, BMO Capital Markets reaffirmed an "outperform" rating on shares of Netflix in a research note on Friday, August 14th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $103.48.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
• Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
• Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
• Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
• Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
• Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals

Insiders Place Their Bets

In related 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 transaction, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. This trade represents a 18.42% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company's stock, valued at approximately $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 600,295 shares of company stock valued at $49,056,671. Insiders own 1.24% of the company's stock.

Netflix Company 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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