Kelman Lazarov Inc. Makes New Investment in Netflix, Inc. $NFLX

Kelman Lazarov Inc. purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 10,810 shares of the Internet television network’s stock, valued at approximately $772,000.

Other hedge funds and other institutional investors have also modified their holdings of the company. Vanguard Group Inc. boosted its position 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 period. Shepherd Street Advisors LLC bought a new position in shares of Netflix in the fourth quarter valued at approximately $2,216,000. Morse Asset Management Inc raised its position in shares of Netflix by 809.3% in the fourth quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network’s stock valued at $6,069,000 after purchasing an additional 57,611 shares during the period. University of Texas Texas AM Investment Management Co. lifted its stake in shares of Netflix by 798.5% in the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock worth $3,989,000 after buying an additional 37,807 shares during the last quarter. Finally, New Mexico Educational Retirement Board lifted its stake in shares of Netflix by 900.0% in the fourth quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network’s stock worth $18,022,000 after buying an additional 172,989 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

Insider Buying and Selling

In other news, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction 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 completion of the transaction, the chief executive officer owned 178,954 shares of the company’s stock, valued at $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. In the last three months, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by corporate insiders.

Netflix Stock Performance

NASDAQ:NFLX opened at $80.22 on Thursday. The firm’s 50-day moving average is $74.43 and its 200-day moving average is $84.39. The company has a market cap of $334.03 billion, a price-to-earnings ratio of 25.25, a PEG ratio of 0.98 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $126.71.

Netflix (NASDAQ:NFLX) last released its 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. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter last year, the company earned $0.72 earnings per share. The firm’s revenue was up 13.4% on a year-over-year basis. Equities research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Morgan Stanley reaffirmed an “overweight” rating and set a $90.00 price objective (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. Pivotal Research cut their target price on shares of Netflix from $96.00 to $70.00 and set a “hold” rating for the company in a research report on Friday, July 17th. Piper Sandler restated 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. Barclays lowered their price target on Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Friday, July 17th. Finally, Moffett Nathanson dropped their price objective on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, June 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $103.48.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returns: Pershing Square disclosed a roughly 4.9% portfolio position in Netflix, reversing its earlier exit at a reported loss of about $400 million. Ackman’s renewed conviction reflects expectations for double-digit revenue growth, margin expansion and continued streaming leadership. What’s Going On With Netflix Stock Wednesday?
• Positive Sentiment: Advertising remains a growth catalyst: Analysts highlighted Netflix’s rapidly scaling ad-supported business, including new advertising tools and live programming that could help generate billions in ad revenue and support longer-term revenue expansion. NFLX’s Ad Business Focus
• Positive Sentiment: Valuation attracts bargain hunters: With the stock down about 43% from its peak and trading near 21 times forward earnings, investors are comparing Netflix’s valuation with prior major pullbacks and arguing that the risk-reward profile has improved. Several commentators and CNBC’s Jason Snipe also endorsed the shares. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Broader market rotation helped: Netflix participated in a shift away from semiconductor stocks and toward beaten-down software and technology shares. This suggests part of the move reflected sector positioning rather than a new company-specific operating announcement. Netflix, Salesforce, and Adobe Rally
• Negative Sentiment: Copyright lawsuit adds risk: The band Demon Hunter sued Netflix over the title and alleged intellectual-property issues involving KPop Demon Hunters. The legal action introduces potential costs and reputational risk, although its financial impact is currently unclear. Netflix sued by band Demon Hunter

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.