Liontrust Investment Partners LLP Cuts Position in Netflix, Inc. $NFLX

Liontrust Investment Partners LLP reduced its position in Netflix, Inc. (NASDAQ:NFLX) by 51.8% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 90,717 shares of the Internet television network’s stock after selling 97,556 shares during the period. Liontrust Investment Partners LLP’s holdings in Netflix were worth $6,477,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of NFLX. Glenview Trust Co acquired a new stake in shares of Netflix in the second quarter worth $1,570,000. North Star Asset Management Inc. lifted its holdings in shares of Netflix by 24.0% during the 2nd quarter. North Star Asset Management Inc. now owns 3,173 shares of the Internet television network’s stock valued at $227,000 after acquiring an additional 614 shares in the last quarter. Maxele Advisors LLC acquired a new position in shares of Netflix during the 2nd quarter valued at $428,000. Empowered Funds LLC boosted its position in Netflix by 17.4% during the 2nd quarter. Empowered Funds LLC now owns 1,007,619 shares of the Internet television network’s stock worth $71,944,000 after purchasing an additional 149,271 shares during the period. Finally, Dearborn Partners LLC purchased a new stake in Netflix during the 2nd quarter worth $972,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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. The firm has a 50-day moving average of $74.65 and a two-hundred day moving average of $84.33. The stock has a market cap of $340.28 billion, a P/E ratio of 25.72, a PEG ratio of 1.00 and a beta of 1.52. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $126.71.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (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 analyst estimates of $12.58 billion. During the same period in the previous year, the company earned $0.72 earnings per share. The company’s revenue for the quarter was up 13.4% compared to the same quarter last year. On average, research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts recently issued reports on NFLX shares. TD Cowen lowered their price target on Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a report on Friday, July 17th. Stephens began coverage on Netflix in a research report on Friday, July 17th. They issued an “overweight” rating for the company. UBS Group lowered their target price on Netflix from $130.00 to $115.00 and set a “buy” rating for the company in a research note on Friday, July 17th. KeyCorp reiterated an “overweight” rating and set a $92.00 target price (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Finally, Seaport Research Partners lowered Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Four investment 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 assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $103.19.

Insider Activity at Netflix

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the company’s 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 transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer owned 178,954 shares of the company’s stock, valued at approximately $13,126,275.90. This trade represents a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 600,295 shares of company stock worth $49,056,671 over the last ninety days. Company insiders own 1.24% of the company’s stock.

Netflix News Summary

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

About Netflix

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.