GSA Capital Partners LLP Acquires New Position in Netflix, Inc. $NFLX

GSA Capital Partners LLP bought a new position in Netflix, Inc. (NASDAQ:NFLX) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor bought 7,791 shares of the Internet television network’s stock, valued at approximately $556,000.

A number of other institutional investors also recently modified their holdings of NFLX. Turning Point Benefit Group Inc. boosted its position in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new position in Netflix in the 3rd quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new position in Netflix in the 4th quarter worth about $26,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Netflix during the 4th quarter worth about $26,000. Finally, Jessup Wealth Management Inc purchased a new stake in shares of Netflix during the 4th quarter worth about $27,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Insiders Place Their Bets

In related news, CEO Theodore A. Sarandos sold 105,850 shares of the business’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the transaction, the chief executive officer owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 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. Also, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction that occurred on 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 sale, the director owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 600,295 shares of company stock valued at $49,056,671 in 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 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

Several brokerages recently weighed in on NFLX. Barclays cut their price objective on shares of Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Friday, July 17th. CLSA began coverage on shares of Netflix in a research note on Monday, July 20th. They issued an “outperform” rating for the company. Piper Sandler reiterated an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Wells Fargo & Company set a $80.00 target price on Netflix and gave the company an “equal weight” rating in a report on Friday, July 17th. Finally, Erste Group Bank cut Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Netflix Stock Performance

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 firm’s fifty day simple moving average is $74.40 and its 200 day simple moving average is $84.37. 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 firm has a market capitalization of $333.70 billion, a PE ratio of 25.23, a PEG ratio of 1.01 and a beta of 1.52.

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, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the previous year, the business earned $0.72 EPS. The business’s revenue was up 13.4% on a year-over-year basis. On average, sell-side analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current 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.