MJP Associates Inc. ADV Makes New Investment in Netflix, Inc. $NFLX

MJP Associates Inc. ADV bought a new position in Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 11,143 shares of the Internet television network’s stock, valued at approximately $796,000.

A number of other large investors have also made changes to their positions in the company. PCM Encore LLC purchased a new stake in shares of Netflix in the 2nd quarter valued at approximately $2,855,000. Trillium Asset Management LLC purchased a new position in Netflix during the 2nd quarter worth approximately $27,534,000. Altman Advisors Inc. purchased a new position in Netflix during the 2nd quarter worth approximately $2,258,000. Clay Northam Wealth Management LLC acquired a new stake in Netflix during the 2nd quarter valued at $293,000. Finally, Vise Technologies Inc. acquired a new stake in Netflix during the 2nd quarter valued at $14,602,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix News Roundup

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

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on NFLX shares. Robert W. Baird set a $90.00 target price on Netflix and gave the company an “outperform” rating in a report on Wednesday, July 22nd. TD Cowen lowered their price target on Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Pivotal Research dropped their price target on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Piper Sandler reissued an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a research note on Friday, July 17th. Finally, KGI Securities downgraded Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective for the company. in a research note on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $103.48.

Insiders Place Their Bets

In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard N. Barton sold 2,160 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the sale, the director owned 246 shares of the company’s stock, valued at approximately $18,474.60. This trade represents a 89.78% 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. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 in the last 90 days. 1.24% of the stock is currently owned by corporate insiders.

Netflix Trading Down 0.1%

NASDAQ NFLX opened at $80.14 on Friday. Netflix, Inc. has a 1-year low of $65.08 and a 1-year high of $126.71. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $333.70 billion, a PE ratio of 25.23, a price-to-earnings-growth ratio of 1.01 and a beta of 1.52. The firm’s fifty day simple moving average is $74.40 and its 200-day simple moving average is $84.37.

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, beating analysts’ consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.72 earnings per share. As a group, sell-side analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Netflix 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.