Joseph P. Lucia & Associates LLC Takes Position in Netflix, Inc. $NFLX

Joseph P. Lucia & Associates LLC acquired a new stake in Netflix, Inc. (NASDAQ:NFLX) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 7,096 shares of the Internet television network’s stock, valued at approximately $507,000.

Several other hedge funds have also added to or reduced their stakes in NFLX. Turning Point Benefit Group Inc. lifted its holdings in shares of Netflix by 13,400.0% during the 4th 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 in the last quarter. Imprint Wealth LLC acquired a new position in shares of Netflix in the 3rd quarter valued at approximately $25,000. Cornerstone Financial Management LLC bought a new stake in Netflix during the 4th quarter worth approximately $26,000. Atlas Capital Advisors Inc. bought a new stake in Netflix during the 4th quarter worth approximately $26,000. Finally, Jessup Wealth Management Inc acquired a new stake in Netflix during the 4th quarter worth approximately $27,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have weighed in on NFLX. Erste Group Bank lowered shares of Netflix from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. TD Cowen lowered their price objective on shares of Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, July 17th. Seaport Research Partners lowered shares of Netflix from a “buy” rating to a “neutral” rating in a report on Monday, July 20th. JPMorgan Chase & Co. cut their price objective on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating on the stock in a research report on Friday, July 17th. Finally, Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Four 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 given a Sell rating to the stock. Based on data from MarketBeat, Netflix has a consensus rating of “Moderate Buy” and an average target price of $103.48.

Insider Activity

In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the transaction, the director directly owned 3,940 shares in the company, valued at $338,721.80. This trade represents a 98.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 600,295 shares of company stock valued at $49,056,671. Corporate 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%

Shares of NASDAQ:NFLX opened at $76.02 on Tuesday. The company’s 50-day moving average price is $74.53 and its two-hundred day moving average price is $84.46. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The stock has a market capitalization of $316.54 billion, a PE ratio of 23.93, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data 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 company 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%.Netflix’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.72 EPS. On average, equities analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal 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.