Twin Lakes Capital Management LLC Increases Stake in Netflix, Inc. $NFLX

Twin Lakes Capital Management LLC lifted its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 55.8% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 57,624 shares of the Internet television network's stock after buying an additional 20,644 shares during the quarter. Netflix makes up approximately 1.6% of Twin Lakes Capital Management LLC's portfolio, making the stock its 20th biggest position. Twin Lakes Capital Management LLC's holdings in Netflix were worth $4,114,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in Netflix during the 2nd quarter worth approximately $24,902,221,000. State Street Corp raised its holdings in shares of Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors grew its stake in shares of Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley grew its stake in shares of Netflix by 903.0% during the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock worth $8,002,414,000 after purchasing an additional 76,840,318 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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

Insider Activity

In related news, CFO Spencer Adam Neumann sold 9,248 shares of the company's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. This represents a 11.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 transaction of $2,789,944.80. Following the sale, the director owned 79,690 shares of the company's stock, valued at $6,177,568.80. This trade 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 have sold a total of 600,295 shares of company stock worth $49,056,671 over the last ninety days. 1.24% of the stock is owned by corporate insiders.

Netflix Stock Performance

NASDAQ NFLX opened at $81.72 on Friday. 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. The company has a market capitalization of $340.28 billion, a PE ratio of 25.72, a P/E/G ratio of 1.00 and a beta of 1.52. The company has a fifty day moving average of $74.65 and a two-hundred day moving average of $84.33.

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

Wall Street Analysts Forecast Growth

Several research firms recently commented on NFLX. Phillip Securities upgraded Netflix from a "moderate buy" rating to a "strong-buy" rating in a research note on Sunday, July 19th. CLSA assumed coverage on Netflix in a research report on Monday, July 20th. They set an "outperform" rating for the company. The Goldman Sachs Group downgraded Netflix from an "underweight" rating to a "sell" rating in a report on Monday, July 20th. Seaport Research Partners lowered Netflix from a "buy" rating to a "neutral" rating in a research report on Monday, July 20th. Finally, Pivotal Research decreased their target price on Netflix from $96.00 to $70.00 and set a "hold" rating for the company in a research note on Friday, July 17th. Four equities research 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 assigned a Sell rating to the company's stock. Based on data from MarketBeat, Netflix has a consensus rating of "Moderate Buy" and a consensus target price of $103.19.

Netflix Company 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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