172,510 Shares in Netflix, Inc. $NFLX Purchased by Conway Capital Management Inc.

Conway Capital Management Inc. purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 172,510 shares of the Internet television network’s stock, valued at approximately $12,317,000. Netflix comprises approximately 5.5% of Conway Capital Management Inc.’s portfolio, making the stock its 6th largest holding.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Turning Point Benefit Group Inc. raised its stake in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 268 shares in the last quarter. Imprint Wealth LLC purchased a new position in Netflix in the third quarter valued at about $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Netflix in the 4th quarter worth approximately $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 stake in Netflix in the fourth quarter worth about $27,000. Institutional investors own 80.93% of the company’s stock.

Insiders Place Their Bets

In other news, insider David A. Hyman sold 5,723 shares of the firm’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 in the company, valued at $23,027,885. This trade represents a 1.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total transaction of $162,216.00. Following the sale, the director directly owned 246 shares in the company, valued at approximately $18,474.60. The trade was a 89.78% decrease in their position. 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 have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by company insiders.

Netflix Trading Down 2.7%

Shares of NFLX stock opened at $76.02 on Tuesday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The company’s 50-day moving average price is $74.53 and its 200-day moving average price is $84.46. The stock has a market cap of $316.54 billion, a price-to-earnings ratio of 23.93, a PEG ratio of 0.98 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data 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. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same period last year, the business earned $0.72 earnings per share. Netflix’s revenue was up 13.4% compared to the same quarter last year. As a group, equities analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Analyst Ratings Changes

A number of brokerages have recently weighed in on NFLX. BMO Capital Markets reissued an “outperform” rating on shares of Netflix in a report on Friday. Wedbush dropped their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th. Oppenheimer set a $85.00 price target on Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. CLSA initiated coverage on shares of Netflix in a report on Monday, July 20th. They issued an “outperform” rating for the company. Finally, China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a research report on Tuesday, July 21st. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $103.48.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here’s Why Investors Should Care.
• Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
• Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
• Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
• Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.

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.