Sumitomo Life Insurance Co. Takes Position in Netflix, Inc. $NFLX

Key Points

• Sumitomo Life Insurance purchased 41,128 Netflix shares worth approximately $2.94 million during the second quarter. Institutional investors collectively own 80.93% of the stock.
• Netflix reported quarterly earnings of $0.80 per share, slightly above estimates, while revenue reached $12.56 billion and grew 13.4% year over year. Shares opened at $79.59, within a 52-week range of $65.08 to $126.71.
• Insiders sold approximately 600,295 shares worth $49.1 million over the past three months, including sizable sales by directors Reed Hastings and Bradford L. Smith. Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $103.48.

Sumitomo Life Insurance Co. purchased a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund purchased 41,128 shares of the Internet television network's stock, valued at approximately $2,937,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Turning Point Benefit Group Inc. boosted its position in Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares in the last quarter. Imprint Wealth LLC bought a new stake in shares of Netflix during the third quarter worth $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Netflix during the fourth quarter worth $26,000. Atlas Capital Advisors Inc. acquired a new position in shares of Netflix during the fourth quarter worth $26,000. Finally, Jessup Wealth Management Inc acquired a new position in shares of Netflix during the fourth quarter worth $27,000. 80.93% of the stock is owned by institutional investors.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $79.59 on Friday. The firm has a market cap of $331.41 billion, a PE ratio of 25.05, a price-to-earnings-growth ratio of 1.01 and a beta of 1.52. The firm's fifty day moving average is $74.39 and its 200-day moving average is $84.34. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion for 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%. Netflix's revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.72 earnings per share. Sell-side analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity

In other news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction dated 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 completion of the sale, the director owned 79,690 shares of the company's stock, valued at approximately $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the transaction, the director owned 3,940 shares of the company's stock, valued at $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is owned by corporate insiders.

Netflix News Summary

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

Analyst Ratings Changes

Several equities research analysts recently weighed in on NFLX shares. TD Cowen cut their price objective on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Robert W. Baird set a $90.00 target price on Netflix and gave the stock an "outperform" rating in a report on Wednesday, July 22nd. Seaport Research Partners cut Netflix from a "buy" rating to a "neutral" rating in a report on Monday, July 20th. Moffett Nathanson dropped their target price on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. Finally, Barclays cut their price target on Netflix from $85.00 to $80.00 and set an "equal weight" rating on the stock in a research note on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given 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.com, Netflix presently has an average rating of "Moderate Buy" and a consensus price target of $103.48.

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.

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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