Wedbush Securities Inc. Sells 9,615 Shares of Netflix, Inc. $NFLX

Wedbush Securities Inc. decreased its holdings in Netflix, Inc. (NASDAQ:NFLX) by 5.5% in the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 164,523 shares of the Internet television network’s stock after selling 9,615 shares during the period. Wedbush Securities Inc.’s holdings in Netflix were worth $11,747,000 as of its most recent SEC filing.

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

Insider Buying and Selling

In other Netflix news, Director Richard N. Barton sold 2,160 shares of the business’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total transaction of $162,216.00. Following the transaction, the director directly owned 246 shares of the company’s stock, valued at approximately $18,474.60. The trade was a 89.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the transaction, the chief executive officer owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 over the last three months. Insiders own 1.24% of the company’s stock.

Netflix Stock Up 2.4%

Shares of NASDAQ:NFLX opened at $81.72 on Friday. The stock’s 50-day moving average is $74.65 and its 200 day moving average is $84.33. The company has a market cap of $340.28 billion, a PE ratio of 25.72, a P/E/G ratio of 1.03 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, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business’s revenue was up 13.4% on a year-over-year basis. During the same quarter last year, the business posted $0.72 EPS. Sell-side analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Netflix News Summary

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

Several equities research analysts recently weighed in on NFLX shares. Jefferies Financial Group dropped their target price on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a report on Wednesday, June 10th. Phillip Securities raised Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Bank of America reiterated a “buy” rating and issued a $125.00 price objective on shares of Netflix in a research report on Monday, May 18th. UBS Group cut their target price on shares of Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $95.00 target price (up from $84.00) on shares of Netflix in a research note on Tuesday. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $103.19.

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.