Summit Global Investments Invests $1.26 Million in Netflix, Inc. $NFLX

Key Points

• Summit Global Investments purchased 17,587 Netflix shares worth approximately $1.26 million in the second quarter, while institutional investors and hedge funds collectively own 80.93% of the stock.
• Netflix reported second-quarter revenue growth of 13.4% year over year to $12.56 billion and EPS of $0.80, narrowly exceeding estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48 versus the reported $78.16 share price.
• Investor sentiment is mixed: Bill Ackman’s Pershing Square disclosed a major new Netflix position, but Netflix is closing two gaming studios and insiders have reported substantial recent selling, including sales by the CEO and a director.

Summit Global Investments purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 17,587 shares of the Internet television network's stock, valued at approximately $1,256,000.

Several other hedge funds have also recently added to or reduced their stakes in NFLX. Pacific Sun Financial Corp grew its holdings in shares of Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock worth $688,000 after buying an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC raised its position in shares of Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock valued at $137,000 after buying an additional 10 shares during the last quarter. Monograph Wealth Advisors LLC lifted its stake in shares of Netflix by 1.8% in 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 lifted its stake in shares of Netflix by 2.0% in 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. boosted its position in Netflix by 1.4% during the second quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock worth $2,009,000 after acquiring an additional 20 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Stock Performance

Netflix stock opened at $78.16 on Friday. The firm has a 50 day simple moving average of $74.67 and a 200-day simple moving average of $84.54. The stock has a market cap of $325.45 billion, a price-to-earnings ratio of 24.60, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. 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, Inc. has a 1-year low of $65.08 and a 1-year high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $12.58 billion. During the same quarter in the previous year, the company earned $0.72 EPS. The business's revenue for the quarter was up 13.4% compared to the same quarter last year. On average, analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have commented on NFLX shares. Citigroup downgraded shares of Netflix from a "buy" rating to a "positive" rating in a report on Monday, July 20th. Deutsche Bank Aktiengesellschaft set a $110.00 price target on Netflix in a research report on Monday, July 20th. BMO Capital Markets reaffirmed an "outperform" rating on shares of Netflix in a report on Friday. Needham & Company LLC reiterated a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Finally, Morgan Stanley reissued an "overweight" rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square disclosed a new Netflix position of approximately 3.15 million shares, representing about 4.9% of the fund’s portfolio. Ackman said Netflix has effectively “won the streaming wars,” renewing investor interest after the stock’s major sell-off. Reuters article
• Positive Sentiment: Analysts and investing commentators point to Netflix’s resilient fundamentals: second-quarter revenue rose 13.4% year over year to $12.6 billion, earnings per share slightly exceeded estimates, and profitability remained strong. The advertising business, expanding margins and a valuation viewed as reasonable relative to growth are supporting the bullish case. Zacks article
• Positive Sentiment: Netflix’s continued push into live sports—including an MLB “Field of Dreams” game—and the extension of its Seinfeld agreement could strengthen engagement, advertising opportunities and content retention. MLB live sports article
• Neutral Sentiment: Institutional positioning is mixed: some large investors added shares while others reduced holdings. Analysts’ reported price targets remain above the current market level, but investors still must weigh valuation and slowing growth expectations.
• Negative Sentiment: Netflix closed its Hollywood-based Night School gaming studio and plans to close Helsinki-based Moonloot. The closures may improve focus and reduce costs, but they also raise questions about the company’s gaming strategy and ability to expand beyond streaming. Los Angeles Times article
• Negative Sentiment: Reported insider trading shows 30 Netflix open-market sales and no purchases over the past six months. While such sales may reflect compensation or diversification, the one-sided pattern can weigh on sentiment and contrasts with Ackman’s new bullish position. Quiver Quantitative article

Insider Activity at Netflix

In other Netflix news, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the sale, the director owned 246 shares in the company, valued at $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the company's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value 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 approximately $8,893,265.74. This trade represents a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 600,295 shares of company stock valued at $49,056,671 over the last 90 days. Corporate insiders own 1.24% of the company's 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.

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