Two Sigma Securities LLC Acquires Shares of 48,597 Netflix, Inc. $NFLX

Key Points

• Two Sigma Securities acquired 48,597 Netflix shares worth approximately $3.47 million during the second quarter, initiating a new position.
• Other institutional investors also increased their Netflix holdings, and hedge funds and institutions collectively own 80.93% of the company’s stock.
• Netflix reported quarterly EPS of $0.80, slightly exceeding estimates, while revenue rose 13.4% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $103.19, though recent insider selling and mixed analyst revisions remain potential concerns.

Two Sigma Securities LLC acquired a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 48,597 shares of the Internet television network's stock, valued at approximately $3,470,000.

A number of other hedge funds also recently modified their holdings of NFLX. GTS Securities LLC boosted its holdings in shares of Netflix by 178.2% during the 2nd quarter. GTS Securities LLC now owns 790,640 shares of the Internet television network's stock worth $56,452,000 after buying an additional 506,445 shares during the period. Flputnam Investment Management Co. raised its holdings in Netflix by 28.7% in the 2nd quarter. Flputnam Investment Management Co. now owns 36,326 shares of the Internet television network's stock valued at $2,594,000 after acquiring an additional 8,095 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in Netflix by 6.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 666,865 shares of the Internet television network's stock valued at $47,614,000 after acquiring an additional 41,752 shares during the period. Rational Advisors Inc. lifted its position in Netflix by 235.6% during the second quarter. Rational Advisors Inc. now owns 101,534 shares of the Internet television network's stock worth $7,250,000 after acquiring an additional 71,282 shares during the last quarter. Finally, Thornburg Investment Management Inc. lifted its position in Netflix by 428.3% during the second quarter. Thornburg Investment Management Inc. now owns 665,548 shares of the Internet television network's stock worth $47,520,000 after acquiring an additional 539,563 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Trending Headlines about 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

Netflix Price Performance

Shares of NASDAQ NFLX opened at $81.72 on Monday. The business has a fifty day moving average price of $74.65 and a two-hundred day moving average price of $84.35. The stock has a market capitalization of $340.28 billion, a PE ratio of 25.72, a P/E/G ratio of 1.03 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 fifty-two week low of $65.08 and a fifty-two week high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) 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 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 period in the prior year, the firm posted $0.72 EPS. As a group, equities analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In other news, insider David A. Hyman sold 5,723 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This represents a 1.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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 the stock in a transaction that occurred 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 sale, the chief executive officer owned 120,931 shares in the company, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 213,595 shares of company stock valued at $15,812,072. Company insiders own 1.24% of the company's stock.

Analyst Upgrades and Downgrades

NFLX has been the topic of a number of recent research reports. KGI Securities lowered Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 target price on the stock. in a research note on Friday, July 17th. Wells Fargo & Company set a $80.00 price target on Netflix and gave the company an "equal weight" rating in a research note on Friday, July 17th. China Intl Cap raised Netflix to a "strong-buy" rating in a report on Tuesday, July 21st. Wolfe Research reiterated an "outperform" rating and set a $95.00 price objective (up from $84.00) on shares of Netflix in a research report on Tuesday, August 25th. Finally, Moffett Nathanson dropped their target price on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a report on Wednesday, June 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average 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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