UNIVEST FINANCIAL Corp Takes $2 Million Position in Netflix, Inc. $NFLX

UNIVEST FINANCIAL Corp acquired a new stake in Netflix, Inc. (NASDAQ:NFLX) during the second quarter, Holdings Channel reports. The fund acquired 27,978 shares of the Internet television network’s stock, valued at approximately $1,998,000.

Other hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the period. BlackRock Inc. purchased a new position in shares of Netflix during the 2nd quarter worth $24,902,221,000. State Street Corp grew its holdings in shares of Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares during the period. Geode Capital Management LLC increased its position in shares of Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Finally, Capital World Investors increased its position in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at $23,027,885. This trade represents a 1.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Adam Neumann sold 9,248 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This represents a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 600,295 shares of company stock worth $49,056,671 over the last 90 days. 1.24% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of research analysts have commented on NFLX shares. KeyCorp reaffirmed an “overweight” rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a research report on Monday, July 13th. Moffett Nathanson dropped their price target on shares of Netflix from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. Citigroup reissued a “market perform” rating on shares of Netflix in a research note on Monday. Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Finally, KGI Securities cut shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective for the company. in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $103.48.

Netflix Stock Down 2.7%

Shares of NASDAQ:NFLX opened at $76.02 on Tuesday. The firm 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, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The firm’s 50-day moving average is $74.53 and its two-hundred day moving average is $84.46.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the firm posted $0.72 earnings per share. Analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Key Headlines Impacting Netflix

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.

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.