Prosperitas Financial LLC Boosts Stock Position in Netflix, Inc. $NFLX

Prosperitas Financial LLC grew its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 13.6% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 72,264 shares of the Internet television network’s stock after purchasing an additional 8,667 shares during the quarter. Netflix makes up about 1.7% of Prosperitas Financial LLC’s investment portfolio, making the stock its 20th largest position. Prosperitas Financial LLC’s holdings in Netflix were worth $5,160,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Archer Investment Corp bought a new stake in Netflix in the 2nd quarter worth approximately $306,000. Financial Avengers Inc. grew its position in Netflix by 148.4% during the second quarter. Financial Avengers Inc. now owns 3,205 shares of the Internet television network’s stock valued at $229,000 after acquiring an additional 1,915 shares during the last quarter. Kingsview Wealth Management LLC grew its position in Netflix by 27.3% during the second quarter. Kingsview Wealth Management LLC now owns 749,512 shares of the Internet television network’s stock valued at $53,515,000 after acquiring an additional 160,555 shares during the last quarter. Beacon Pointe Advisors LLC raised its stake in shares of Netflix by 54.5% during the second quarter. Beacon Pointe Advisors LLC now owns 287,167 shares of the Internet television network’s stock worth $20,504,000 after acquiring an additional 101,306 shares in the last quarter. Finally, Kimelman & Baird LLC raised its stake in shares of Netflix by 2,251.2% during the second quarter. Kimelman & Baird LLC now owns 79,823 shares of the Internet television network’s stock worth $5,699,000 after acquiring an additional 76,428 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Roundup

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

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on NFLX. Phillip Securities upgraded shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. Weiss Ratings downgraded shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, June 26th. Wedbush lowered their price target on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating for the company in a research note on Friday, July 17th. Finally, KeyCorp restated an “overweight” rating and set a $92.00 price target (down from $115.00) on shares of Netflix in a research report on Monday, July 13th. 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 given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.19.

Netflix Stock Performance

NASDAQ:NFLX opened at $81.72 on Friday. The firm has a market cap of $340.28 billion, a PE ratio of 25.72, a price-to-earnings-growth ratio of 1.00 and a beta of 1.52. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The business has a 50 day moving average price of $74.65 and a 200-day moving average price of $84.33.

Netflix (NASDAQ:NFLX) last issued its earnings results 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 company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the firm earned $0.72 earnings per share. The firm’s revenue for the quarter was up 13.4% on a year-over-year basis. Equities research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Buying and Selling at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction 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 sale, 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the business’s 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 transaction, the chief executive officer owned 120,931 shares in the company, valued at $8,893,265.74. The trade was a 18.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last ninety days. 1.24% of the stock is owned by company insiders.

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.