Van ECK Associates Corp Trims Position in Netflix, Inc. $NFLX

Van ECK Associates Corp cut its stake in shares of Netflix, Inc. (NASDAQ:NFLX) by 0.9% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,123,870 shares of the Internet television network’s stock after selling 10,392 shares during the period. Van ECK Associates Corp’s holdings in Netflix were worth $80,244,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Imprint Wealth LLC purchased a new position in shares of Netflix during the 3rd quarter valued at $25,000. Wealth Watch Advisors INC bought a new position in shares of Netflix in the third quarter worth $103,000. Strategic Wealth Investment Group LLC purchased a new stake in shares of Netflix in the second quarter worth $121,000. Wiser Advisor Group LLC purchased a new stake in shares of Netflix in the third quarter worth $114,000. Finally, Beaird Harris Wealth Management LLC boosted its stake in Netflix by 9.6% during the third 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.

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

Insider Activity

In related news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 Netflix stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at approximately $338,721.80. The trade was a 98.99% 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. In the last three months, insiders sold 600,295 shares of company stock valued at $49,056,671. Insiders own 1.24% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the company. Citigroup restated a “market perform” rating on shares of Netflix in a research note on Monday, August 17th. Wedbush decreased their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research report on Friday, July 17th. Raymond James Financial restated a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Netflix in a research note on Friday, August 14th. Finally, Stephens began coverage on shares of Netflix in a research report on Friday, July 17th. They set an “overweight” rating for the company. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Netflix has an average rating of “Moderate Buy” and an average target price of $103.19.

Netflix Price Performance

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 firm has a market capitalization of $340.28 billion, a PE ratio of 25.72, a price-to-earnings-growth ratio of 1.03 and a beta of 1.52. The business’s 50-day moving average price is $74.65 and its 200-day moving average price is $84.33. Netflix, Inc. has a 12 month low of $65.08 and a 12 month 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, topping analysts’ consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.72 EPS. Sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

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.