MidFirst Bank Makes New $613,000 Investment in Netflix, Inc. $NFLX

MidFirst Bank purchased a new stake in shares of Netflix, Inc. (NASDAQ:NFLX) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 8,580 shares of the Internet television network’s stock, valued at approximately $613,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of NFLX. Imprint Wealth LLC purchased a new stake in Netflix during the third quarter valued at approximately $25,000. Wealth Watch Advisors INC purchased a new position in Netflix in the third quarter worth $103,000. Strategic Wealth Investment Group LLC purchased a new position in Netflix in the second quarter worth $121,000. Wiser Advisor Group LLC purchased a new stake in shares of Netflix during the 3rd quarter valued at $114,000. Finally, Beaird Harris Wealth Management LLC boosted its position in shares of Netflix by 9.6% in the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after purchasing an additional 10 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Stock Performance

Shares of NFLX opened at $76.02 on Tuesday. The stock has a 50-day moving average of $74.53 and a two-hundred day moving average of $84.46. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a market cap of $316.54 billion, a P/E ratio of 23.93, a P/E/G ratio of 0.98 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.72 EPS. As a group, research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Netflix News Summary

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.

Insider Transactions at Netflix

In other Netflix news, Director Richard N. Barton sold 2,160 shares of the firm’s 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 completion of the transaction, the director directly owned 246 shares of the company’s stock, valued at approximately $18,474.60. This trade represents a 89.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the sale, the chief executive officer owned 178,954 shares of the company’s stock, valued at approximately $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 have sold 600,295 shares of company stock valued at $49,056,671 over the last quarter. Company insiders own 1.24% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently issued reports on NFLX shares. Pivotal Research reduced their target price on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. UBS Group dropped their price target on Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Wedbush cut their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. CLSA started coverage on shares of Netflix in a report on Monday, July 20th. They set an “outperform” rating on the stock. Finally, Moffett Nathanson decreased their price objective on shares of Netflix from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

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.