Dearborn Partners LLC Makes New Investment in Netflix, Inc. $NFLX

Dearborn Partners LLC acquired a new stake in Netflix, Inc. (NASDAQ:NFLX) during the second quarter, Holdings Channel reports. The institutional investor acquired 10,107 shares of the Internet television network’s stock, valued at approximately $972,000.

Other institutional investors have also recently modified their holdings of the company. BlackRock Inc. acquired a new position in Netflix in the 2nd quarter worth approximately $24,902,221,000. State Street Corp lifted its stake in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors boosted its holdings in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley increased its stake in shares of Netflix by 903.0% in the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after acquiring an additional 76,840,318 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix Price Performance

Shares of Netflix stock opened at $79.84 on Friday. The business has a 50 day simple moving average of $74.56 and a two-hundred day simple moving average of $84.35. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The stock has a market capitalization of $332.45 billion, a P/E ratio of 25.13, a PEG ratio of 1.02 and a beta of 1.52. 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 (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the company posted $0.72 earnings per share. The business’s revenue was up 13.4% on a year-over-year basis. As a group, analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s advertising strategy remains a potential earnings catalyst. The company is targeting roughly $3 billion in advertising revenue, while expanding ad-supported plans globally and incorporating live events to improve monetization. Netflix Stock Opinions on Ad Monetization and Market Resistance
• Positive Sentiment: Analyst support and a stronger content lineup are helping underpin the recovery narrative. Wolfe Research recently raised its price target to $95, while reports of a Netflix-related Grand Theft Auto VI preview and other upcoming releases could support engagement and subscriber monetization. Jim Cramer Says Netflix Worth the Risk as Wolfe Raises Price Target to $95
• Neutral Sentiment: The stock has historically attracted buyers near its current technical floor, and it has recovered more than 21% from a recent low. However, investors are watching whether the rebound can break through resistance and develop into a sustained advance. NFLX Has Bounced From This Price Before. Now What?
• Neutral Sentiment: Netflix continues to post solid fundamentals: latest quarterly revenue rose 13.4% year over year to $12.56 billion, while earnings modestly exceeded expectations. The slight revenue miss and debate over slowing growth, however, have limited investor enthusiasm.
• Negative Sentiment: Relative weakness is notable because Netflix declined even as the broader market advanced. Analysts increasingly view Alphabet as having an edge because of its faster-growing, diversified advertising business and lower valuation, raising concerns about Netflix’s multiple and future growth rate. NFLX vs. GOOGL: Which Streaming and Ad Stock Has an Edge Right Now?
• Negative Sentiment: Reported insider activity has been heavily skewed toward selling, with no insider purchases and multiple sales by executives and directors over the past six months. While such transactions do not necessarily signal deteriorating operations, they can weigh on sentiment during a technical pullback. Netflix Insider Trading and Market Resistance

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the company’s stock in a transaction 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 sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the sale, the chief executive officer 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. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last 90 days. Corporate insiders own 1.24% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on NFLX. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the company an “equal weight” rating in a research report on Friday, July 17th. China Intl Cap raised Netflix to a “strong-buy” rating in a research report on Tuesday, July 21st. Citigroup reiterated a “market perform” rating on shares of Netflix in a research note on Monday, August 17th. Barclays decreased their price objective on Netflix from $85.00 to $80.00 and set an “equal weight” rating for the company in a report on Friday, July 17th. Finally, Wolfe Research reaffirmed an “outperform” rating and set a $95.00 target price (up from $84.00) on shares of Netflix in a report on Tuesday. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $103.19.

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.