Cornerstone Advisors LLC Takes $29.36 Million Position in Netflix, Inc. $NFLX

Cornerstone Advisors LLC purchased a new position in Netflix, Inc. (NASDAQ:NFLX) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 411,281 shares of the Internet television network’s stock, valued at approximately $29,365,000. Netflix makes up about 1.0% of Cornerstone Advisors LLC’s portfolio, making the stock its 22nd biggest holding.

A number of other large investors also recently added to or reduced their stakes in NFLX. Brighton Jones LLC grew its position in shares of Netflix by 5.0% in the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC raised its position in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after purchasing an additional 144 shares during the last quarter. Sivia Capital Partners LLC raised its position in shares of Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after purchasing an additional 246 shares during the last quarter. Strategic Investment Advisors MI lifted its stake in Netflix by 18.9% in the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after buying an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. lifted its stake in Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after buying an additional 228 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about 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.

Insider Activity at Netflix

In other news, Director Richard N. Barton sold 2,160 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the sale, the director owned 246 shares of the company’s stock, valued at approximately $18,474.60. This trade represents a 89.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. 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 three months. Company insiders own 1.24% of the company’s stock.

Netflix Price Performance

Shares of NFLX opened at $76.02 on Tuesday. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The firm’s fifty day simple moving average is $74.53 and its 200-day simple moving average is $84.46. The firm has a market capitalization of $316.54 billion, a price-to-earnings ratio of 23.93, a PEG ratio of 0.98 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

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

Wall Street Analysts Forecast Growth

Several research firms have commented on NFLX. Daiwa Securities Group boosted their price objective on Netflix from $97.00 to $102.00 and gave the stock an “outperform” rating in a research note on Thursday, April 23rd. Pivotal Research decreased their price objective on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a report on Friday, July 17th. Moffett Nathanson lowered their target price on shares of Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, June 17th. Citic Securities lifted their target price on shares of Netflix from $95.00 to $107.00 and gave the stock a “hold” rating in a research note on Monday, April 27th. Finally, Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the company an “outperform” rating in a report on Friday, July 17th. 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 company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $103.48.

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.