Royal London Asset Management Ltd. Has $200.61 Million Holdings in Netflix, Inc. $NFLX

Key Points

• Royal London Asset Management reduced its Netflix stake by 2.9% in the second quarter, selling 83,462 shares but retaining 2.81 million shares valued at approximately $200.6 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix reported quarterly EPS of $0.80, slightly above estimates, while revenue rose 13.4% year over year to $12.56 billion, narrowly missing consensus expectations. The stock opened at $81.72, with a market capitalization of $340.28 billion.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $103.19, although several firms lowered targets or issued neutral and sell ratings. Insiders sold more than 600,000 shares worth about $49.1 million over the past 90 days.

Royal London Asset Management Ltd. decreased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 2.9% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,809,691 shares of the Internet television network's stock after selling 83,462 shares during the quarter. Royal London Asset Management Ltd. owned 0.07% of Netflix worth $200,612,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently made changes to their positions in NFLX. Pacific Sun Financial Corp lifted its stake in Netflix by 1.6% in the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock valued at $688,000 after purchasing an additional 9 shares during the last quarter. Beaird Harris Wealth Management LLC increased 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 in the last quarter. Monograph Wealth Advisors LLC increased its holdings in shares of Netflix by 1.8% during the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock worth $913,000 after buying an additional 12 shares in the last quarter. Resources Management Corp CT ADV increased its holdings in shares of Netflix by 2.0% during the second quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network's stock worth $1,110,000 after buying an additional 16 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. lifted its stake in shares of Netflix by 1.4% in the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock valued at $2,009,000 after acquiring an additional 20 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

Netflix Trading Up 2.4%

NASDAQ:NFLX opened at $81.72 on Friday. The company has a market cap of $340.28 billion, a PE ratio of 25.72, a PEG ratio of 1.00 and a beta of 1.52. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The firm has a 50-day moving average of $74.65 and a 200-day moving average of $84.33. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

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

Analysts Set New Price Targets

Several equities research analysts recently weighed in on NFLX shares. KGI Securities downgraded Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective on the stock. in a report on Friday, July 17th. KeyCorp reaffirmed an "overweight" rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Wells Fargo & Company set a $80.00 target price on Netflix and gave the company an "equal weight" rating in a research report on Friday, July 17th. Raymond James Financial reissued a "market perform" rating on shares of Netflix in a research note on Thursday, May 14th. Finally, The Goldman Sachs Group cut Netflix from an "underweight" rating to a "sell" rating in a report on Monday, July 20th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $103.19.

Insider Buying and Selling

In related news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, August 6th. The shares were 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 owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Bradford L. Smith sold 35,990 shares of Netflix stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the sale, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. This represents a 31.11% 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. Insiders sold 600,295 shares of company stock worth $49,056,671 in the last ninety days. Corporate insiders own 1.24% of the company's stock.

Key Stories Impacting Netflix

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

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.

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