VectorGlobal IAG Inc. Buys New Shares in Netflix, Inc. $NFLX

Key Points

• VectorGlobal IAG initiated a Netflix position of 97,148 shares worth approximately $9.34 million in the first quarter, making Netflix 2.4% of its portfolio and its 13th-largest holding.
• Institutional investors and hedge funds own approximately 80.93% of Netflix, while insiders sold 492,289 shares worth about $42.2 million over the past 90 days.
• Netflix reported quarterly EPS of $0.80, slightly above estimates, while revenue rose 13.4% year over year to $12.56 billion. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $103.48.

VectorGlobal IAG Inc. bought a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 97,148 shares of the Internet television network's stock, valued at approximately $9,341,000. Netflix comprises 2.4% of VectorGlobal IAG Inc.'s portfolio, making the stock its 13th largest position.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Hamilton Wealth LLC grew its stake in Netflix by 0.5% during the 1st quarter. Hamilton Wealth LLC now owns 51,897 shares of the Internet television network's stock valued at $4,990,000 after purchasing an additional 260 shares during the last quarter. Redwood Investment Management LLC increased its holdings in shares of Netflix by 15.3% in the first quarter. Redwood Investment Management LLC now owns 8,454 shares of the Internet television network's stock valued at $813,000 after purchasing an additional 1,123 shares during the period. Militia Capital Management LLC purchased a new position in shares of Netflix in the first quarter worth about $590,000. FAS Wealth Partners Inc. raised its stake in shares of Netflix by 2.7% in the first quarter. FAS Wealth Partners Inc. now owns 12,140 shares of the Internet television network's stock worth $1,167,000 after purchasing an additional 320 shares during the last quarter. Finally, Rathbones Group PLC lifted its holdings in shares of Netflix by 53.7% during the first quarter. Rathbones Group PLC now owns 1,266,693 shares of the Internet television network's stock worth $121,793,000 after purchasing an additional 442,520 shares during the period. Institutional investors and hedge funds own 80.93% of the company's stock.

Insider Transactions at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the business's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.69, for a total value of $2,422,301.28. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at $10,725,370.39. The trade was a 18.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction on 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 directly owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% 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. Over the last 90 days, insiders sold 492,289 shares of company stock worth $42,186,530. Insiders own 1.24% of the company's stock.

Netflix Price Performance

Shares of NFLX stock opened at $71.71 on Monday. The stock has a 50 day moving average of $76.66 and a 200 day moving average of $85.38. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock has a market cap of $298.60 billion, a P/E ratio of 22.57, a P/E/G ratio of 0.90 and a beta of 1.52. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71.

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. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the company posted $0.72 earnings per share. Netflix's revenue for the quarter was up 13.4% on a year-over-year basis. As a group, sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. DZ Bank reiterated a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Wolfe Research reissued an "outperform" rating and set a $107.00 price target on shares of Netflix in a research report on Friday, April 17th. Stephens started coverage on shares of Netflix in a research note on Friday, July 17th. They set an "overweight" rating for the company. KeyCorp reaffirmed an "overweight" rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Finally, BMO Capital Markets lowered shares of Netflix from an "outperform" rating to a "market perform" rating in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix agreed to a five-year, approximately $500 million licensing deal covering all 371 episodes of The Walking Dead universe in international markets. The agreement strengthens Netflix’s global content lineup and adds a recognizable franchise beginning in 2027. Los Angeles Times article
• Positive Sentiment: Walmart-owned Flipkart is offering qualifying loyalty members a monthly Netflix mobile subscription after four orders in a month. The partnership could support customer acquisition and engagement in India, although the direct financial impact appears limited. Reuters article

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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