Strategic Global Advisors LLC Buys Shares of 125,530 Netflix, Inc. $NFLX

Key Points

• Strategic Global Advisors LLC acquired 125,530 Netflix shares worth approximately $8.96 million in the second quarter, making Netflix its 19th-largest holding and representing 1.3% of its portfolio.
• Institutional investors own 80.93% of Netflix, while insiders own just 1.24%; company insiders sold roughly 600,295 shares valued at $49.1 million over the past three months, including sales by CEOs Theodore Sarandos and Gregory Peters under pre-arranged plans.
• Analysts maintain a generally positive outlook, with Netflix carrying a “Moderate Buy” consensus rating and a $103.19 average price target. The company slightly beat quarterly EPS expectations, while revenue rose 13.4% year over year.

Strategic Global Advisors LLC purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 125,530 shares of the Internet television network's stock, valued at approximately $8,963,000. Netflix comprises approximately 1.3% of Strategic Global Advisors LLC's portfolio, making the stock its 19th biggest holding.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. Imprint Wealth LLC bought a new position in shares of Netflix in the third quarter worth about $25,000. Wealth Watch Advisors INC purchased a new position in Netflix during the third quarter valued at approximately $103,000. Strategic Wealth Investment Group LLC purchased a new position in Netflix during the second quarter valued at approximately $121,000. Wiser Advisor Group LLC purchased a new stake in shares of Netflix in the third quarter worth $114,000. Finally, Beaird Harris Wealth Management LLC raised its position in shares of Netflix by 9.6% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock valued at $137,000 after purchasing an additional 10 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the transaction, the chief executive officer owned 206,266 shares of the company's stock, valued at $15,063,605.98. The trade was a 33.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction on 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 represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 600,295 shares of company stock valued at $49,056,671 in the last three months. 1.24% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. The Goldman Sachs Group lowered Netflix from an "underweight" rating to a "sell" rating in a research note on Monday, July 20th. Citigroup reissued a "market perform" rating on shares of Netflix in a research note on Monday, August 17th. Wolfe Research restated an "outperform" rating and issued a $95.00 price target (up from $84.00) on shares of Netflix in a research note on Tuesday. Phillip Securities upgraded shares of Netflix from a "moderate buy" rating to a "strong-buy" rating in a research report on Sunday, July 19th. Finally, Bank of America restated a "buy" rating and set a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $103.19.

Netflix Stock Down 0.9%

NASDAQ:NFLX opened at $81.46 on Thursday. The company has a market cap of $339.19 billion, a price-to-earnings ratio of 25.64, a price-to-earnings-growth ratio of 1.03 and a beta of 1.52. The stock has a fifty day simple moving average of $74.51 and a 200-day simple moving average of $84.37. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The company has a current ratio of 1.14, a quick 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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix's quarterly revenue was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.72 earnings per share. Analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Wolfe Research raised its Netflix price target to $95 from $84, arguing that viewer-engagement concerns are overstated and that an improving second-half content slate could help the shares. Jim Cramer separately called the stock a tactical buying opportunity after its recent decline. Netflix is primed to move higher as viewer engagement improves, Wolfe Research says
• Positive Sentiment: Netflix is reportedly exploring a broader streaming-subscription hub that could allow customers to sign up for third-party services such as Peacock and Fox One. The strategy could increase convenience, subscription-related revenue, and customer retention. Netflix Stock Climbs on Plans to Become Streaming Subscription Hub
• Positive Sentiment: Expanded NFL-related content and access to rival streaming programming could give Netflix more opportunities to grow its advertising business by increasing engagement and the value of its ad-supported tier. Netflix Stock: NFL Growth and Rival Streaming Access Could Grow Its Ad Business
• Neutral Sentiment: Reports point to an upcoming Netflix preview tied to Grand Theft Auto VI. The event could generate attention and short-term engagement, but its direct financial impact on Netflix is unclear. Dear Netflix Stock Fans, Mark Your Calendars for August 27
• Negative Sentiment: Industry data indicates that streaming price increases are slowing, while premium ad-free plans have received larger hikes than ad-supported tiers. This could limit Netflix’s pricing power and revenue growth if consumers resist further increases. 3-Year Streaming Outlook: Slowing Down Pricing Hikes
• Negative Sentiment: Some investor commentary remains cautious, noting that Netflix’s strong business performance has not consistently translated into share-price momentum and that the recent rebound case may already be reflected in expectations. Here’s the Test, Says Investor About Netflix Stock

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.

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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