Rational Advisors Inc. Buys 71,282 Shares of Netflix, Inc. $NFLX

Rational Advisors Inc. increased its stake in shares of Netflix, Inc. (NASDAQ:NFLX) by 235.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 101,534 shares of the Internet television network’s stock after acquiring an additional 71,282 shares during the quarter. Netflix makes up 0.7% of Rational Advisors Inc.’s investment portfolio, making the stock its 29th largest position. Rational Advisors Inc.’s holdings in Netflix were worth $7,250,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of the stock. Imprint Wealth LLC bought a new position in shares of Netflix in the third quarter worth approximately $25,000. Wealth Watch Advisors INC purchased a new position in shares of Netflix in the third quarter worth $103,000. Strategic Wealth Investment Group LLC bought a new stake in Netflix during the 2nd quarter valued at $121,000. Wiser Advisor Group LLC bought a new stake in Netflix during the 3rd quarter valued at $114,000. Finally, Beaird Harris Wealth Management LLC boosted its position in Netflix by 9.6% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after buying an additional 10 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Stock Up 2.4%

Shares of Netflix stock opened at $81.72 on Friday. 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’s fifty day simple moving average is $74.65 and its two-hundred day simple moving average is $84.33. The company has a market cap of $340.28 billion, a P/E ratio of 25.72, a PEG ratio of 1.03 and a beta of 1.52. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping 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 analyst estimates of $12.58 billion. During the same period in the prior year, the business earned $0.72 EPS. The company’s revenue for the quarter was up 13.4% on a year-over-year basis. Research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Activity at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on 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 sale, the chief executive officer directly 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 legal filing with the SEC, which can be accessed through this link. 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 Reed Hastings sold 386,700 shares of the company’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 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. Insiders have sold 600,295 shares of company stock valued at $49,056,671 over the last three months. Corporate insiders own 1.24% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Barclays cut their price target on shares of Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a report on Friday, July 17th. Rosenblatt Securities set a $75.00 target price on shares of Netflix and gave the stock a “neutral” rating in a report on Friday, July 17th. China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a report on Tuesday, July 21st. Wells Fargo & Company set a $80.00 target price on Netflix and gave the stock an “equal weight” rating in a research note on Friday, July 17th. Finally, Seaport Research Partners downgraded Netflix from a “buy” rating to a “neutral” rating in a report on Monday, July 20th. Four research 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. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $103.19.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly added approximately 13.1 million Netflix shares, making NFLX one of the hedge fund’s new concentrated holdings. The move may bolster investor confidence in Netflix’s valuation and long-term earnings potential. Bill Ackman portfolio overhaul article
• Positive Sentiment: Analysts and market commentators point to Netflix’s rapidly expanding advertising business, a potential $3 billion advertising revenue opportunity, continued global expansion and margin growth as catalysts for a possible recovery toward $100 and beyond. Record share buybacks could further support earnings per share. Netflix stock price prediction article
• Positive Sentiment: Netflix is being described as an undervalued long-term holding, with bullish arguments centered on double-digit revenue growth, free-cash-flow generation and the ability to monetize live events and lower-priced ad-supported plans. Netflix five-year outlook article
• Neutral Sentiment: The Netflix preview of Grand Theft Auto VI attracted significant online attention and traffic, but the immediate stock-market beneficiary appears to be Take-Two Interactive, the game’s publisher, rather than Netflix. GTA 6 Netflix preview article
• Negative Sentiment: Some analysts argue that Netflix’s growth is moderating and that Alphabet offers stronger diversification, advertising exposure and valuation. Recent commentary also identifies resistance near $82 and muted enthusiasm following the latest earnings report. NFLX versus GOOGL article
• Negative Sentiment: Reported insider activity remains a potential overhang: executives and directors made numerous sales and no purchases over the past six months. Investors may interpret the selling as reduced insider conviction, although it may also reflect routine diversification. Netflix ad monetization and market resistance article

Netflix Company 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.