Focused Wealth Management Inc Makes New Investment in Netflix, Inc. $NFLX

Focused Wealth Management Inc bought a new stake in Netflix, Inc. (NASDAQ:NFLX) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 7,351 shares of the Internet television network’s stock, valued at approximately $525,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Checchi Capital Advisers LLC grew its stake in shares of Netflix by 875.7% during the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock valued at $2,920,000 after acquiring an additional 27,951 shares in the last quarter. Family Capital Trust Co lifted its stake in shares of Netflix by 20,869.5% in the fourth quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network’s stock worth $2,576,000 after acquiring an additional 27,339 shares in the last quarter. Vanguard Group Inc. lifted its stake in shares of Netflix by 912.5% in 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 acquiring an additional 351,493,659 shares in the last quarter. Shepherd Street Advisors LLC purchased a new position in Netflix in the fourth quarter valued at about $2,216,000. Finally, Greystone Financial Group LLC boosted its holdings in Netflix by 1,319.6% in the fourth quarter. Greystone Financial Group LLC now owns 10,505 shares of the Internet television network’s stock valued at $985,000 after purchasing an additional 9,765 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

NFLX has been the topic of a number of recent analyst reports. Bank of America reaffirmed a “buy” rating and issued a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Robert W. Baird set a $90.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research report on Wednesday, July 22nd. Citigroup restated a “market perform” rating on shares of Netflix in a research note on Monday. Piper Sandler reaffirmed an “overweight” rating and issued a $85.00 price target (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Finally, Daiwa Securities Group increased their price objective on shares of Netflix from $97.00 to $102.00 and gave the company an “outperform” rating in a research note on Thursday, April 23rd. Four equities research 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 stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $103.48.

Insider Transactions at Netflix

In other news, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 over the last quarter. Insiders own 1.24% of the company’s stock.

Netflix News Roundup

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 Trading Down 2.7%

NASDAQ:NFLX opened at $76.02 on Tuesday. 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 business’s 50 day moving average is $74.53 and its two-hundred day moving average is $84.46. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71. The company has a market cap of $316.54 billion, a PE ratio of 23.93, a P/E/G ratio of 0.98 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate 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 analyst estimates of $12.58 billion. During the same quarter last year, the firm earned $0.72 EPS. The business’s revenue was up 13.4% on a year-over-year basis. On average, analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

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.