Primecap Management Co. CA Lowers Stock Position in Netflix, Inc. (NASDAQ:NFLX)

Key Points

• Primecap Management Co. CA reduced its holdings in Netflix by 5.4%, selling 8,520 shares and ending with a total of 148,720 shares valued at approximately $138.7 million.
• Multiple hedge funds significantly increased their stakes in Netflix, with Strategy Asset Managers LLC raising its position by 146.3% in the first quarter.
• Netflix reported $7.19 EPS for the last quarter, exceeding analysts' expectations and showing a 15.9% year-over-year revenue growth.

Primecap Management Co. CA trimmed its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 5.4% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 148,720 shares of the Internet television network's stock after selling 8,520 shares during the quarter. Primecap Management Co. CA's holdings in Netflix were worth $138,686,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in NFLX. Halbert Hargrove Global Advisors LLC boosted its stake in Netflix by 100.0% during the 1st quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock worth $25,000 after purchasing an additional 13 shares during the last quarter. Brown Shipley& Co Ltd acquired a new stake in Netflix during the 4th quarter worth $27,000. Transce3nd LLC acquired a new stake in Netflix during the 4th quarter worth $32,000. Copia Wealth Management acquired a new stake in Netflix during the 4th quarter worth $37,000. Finally, Stuart Chaussee & Associates Inc. boosted its stake in Netflix by 4,500.0% during the 4th quarter. Stuart Chaussee & Associates Inc. now owns 46 shares of the Internet television network's stock worth $41,000 after purchasing an additional 45 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Wells Fargo & Company lifted their target price on shares of Netflix from $1,500.00 to $1,560.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Loop Capital reaffirmed a "hold" rating on shares of Netflix in a research note on Tuesday, July 15th. Benchmark reaffirmed a "hold" rating on shares of Netflix in a research note on Monday, April 21st. Phillip Securities cut shares of Netflix from a "hold" rating to a "strong sell" rating in a research note on Monday, July 21st. Finally, Citigroup reissued a "neutral" rating and set a $1,250.00 price target (up previously from $1,020.00) on shares of Netflix in a research report on Thursday, May 29th. Three analysts have rated the stock with a sell rating, ten have assigned a hold rating, twenty-three have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, Netflix has a consensus rating of "Moderate Buy" and a consensus price target of $1,297.66.

Insider Activity

In other Netflix news, insider David A. Hyman sold 424 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,158.67, for a total value of $491,276.08. Following the transaction, the insider directly owned 31,610 shares in the company, valued at $36,625,558.70. This represents a 1.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 2,026 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the completion of the transaction, the chief executive officer owned 12,781 shares in the company, valued at $14,793,240.64. This represents a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 150,226 shares of company stock valued at $183,849,784. 1.37% of the stock is owned by corporate insiders.

Netflix Stock Up 2.6%

Shares of NFLX stock traded up $31.27 during trading hours on Friday, reaching $1,211.64. 3,811,512 shares of the stock were exchanged, compared to its average volume of 3,961,090. The business's fifty day moving average is $1,232.06 and its two-hundred day moving average is $1,091.12. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34. Netflix, Inc. has a 12-month low of $622.99 and a 12-month high of $1,341.15. The firm has a market capitalization of $514.86 billion, a P/E ratio of 51.63, a P/E/G ratio of 1.99 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The firm had revenue of $11.08 billion for the quarter, compared to analyst estimates of $11.04 billion. During the same period in the prior year, the firm earned $4.88 earnings per share. The business's quarterly revenue was up 15.9% compared to the same quarter last year. As a group, research analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.