TRU Independence Asset Management 2 LLC Takes $531,000 Position in Netflix, Inc. $NFLX

TRU Independence Asset Management 2 LLC purchased a new position in Netflix, Inc. (NASDAQ:NFLX) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 7,437 shares of the Internet television network’s stock, valued at approximately $531,000. Netflix comprises about 0.3% of TRU Independence Asset Management 2 LLC’s portfolio, making the stock its 29th biggest position.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. BlackRock Inc. acquired a new stake in Netflix during the 2nd quarter worth $24,902,221,000. State Street Corp grew its holdings in shares of Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Finally, Capital World Investors grew its position in Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, August 6th. The stock was 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 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the completion of the transaction, the director directly owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. This represents a 98.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 600,295 shares of company stock worth $49,056,671 over the last ninety days. Insiders own 1.24% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on NFLX. Robert W. Baird set a $90.00 price objective on Netflix and gave the company an “outperform” rating in a report on Wednesday, July 22nd. Wedbush lowered 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. Bank of America reissued a “buy” rating and set a $125.00 price target on shares of Netflix in a research report on Monday, May 18th. Piper Sandler reiterated an “overweight” rating and set a $85.00 price target (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Finally, Citigroup reaffirmed a “market perform” rating on shares of Netflix in a research report on Monday. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Netflix has an average rating of “Moderate Buy” and an average price target of $103.48.

Netflix Trading Down 0.1%

NFLX opened at $80.14 on Friday. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $126.71. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $333.70 billion, a P/E ratio of 25.23, a P/E/G ratio of 1.01 and a beta of 1.52. The firm’s 50 day moving average is $74.40 and its 200-day moving average is $84.37.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.72 EPS. Analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square rebuilt a major position. The investment firm’s purchase, despite previously taking a reported $400 million loss on Netflix, signals confidence in the company’s long-term growth, competitive position and leadership. The disclosure helped support a recent increase in NFLX shares. Netflix Moved, What Is Drawing Attention Now?
• Positive Sentiment: Analysts see advertising as a significant growth opportunity. Netflix is expanding its ad-supported business through live programming, new ad technology and additional tools for marketers. The company is targeting substantial future advertising revenue, which could diversify its sales base and support continued revenue expansion. NFLX’s Ad Business Focus
• Positive Sentiment: Valuation has become more attractive after the selloff. Netflix trades at roughly 21 times forward earnings in the cited analysis, a level viewed as more reasonable than during prior periods of comparable declines. A CNBC contributor also recommended Netflix, reinforcing the bullish case among some investors. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Co-founder Reed Hastings discussed Netflix’s performance-focused culture. Hastings said companies should operate as teams rather than families, making workforce reductions easier when employees do not meet expectations. The comments revisit Netflix’s 2001 layoffs but do not represent a new operating announcement. Reed Hastings Says Companies Aren’t Families
• Negative Sentiment: YouTube is reportedly trying to prevent creators from signing with Netflix. YouTube is offering creators millions of dollars and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could raise Netflix’s content-acquisition costs and make it harder to secure popular creator-led programming. YouTube Offers Creators Millions to Avoid Netflix Deals
• Negative Sentiment: Netflix faces a lawsuit from the band Demon Hunter. The group alleges that Netflix’s KPop Demon Hunters infringes its rights. The case creates legal and reputational risk, although the financial impact is currently unclear. Netflix Sued by Band Demon Hunter

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.