QV Investors Inc. Boosts Stake in Netflix, Inc. $NFLX

QV Investors Inc. increased its position in Netflix, Inc. (NASDAQ:NFLX) by 153.1% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 230,060 shares of the Internet television network’s stock after purchasing an additional 139,170 shares during the quarter. Netflix makes up about 1.3% of QV Investors Inc.’s investment portfolio, making the stock its 29th largest holding. QV Investors Inc.’s holdings in Netflix were worth $16,426,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Netflix during the 2nd quarter valued at $24,902,221,000. State Street Corp increased its stake in shares of Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC lifted its position in Netflix by 892.0% during 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 period. Capital World Investors lifted its position in Netflix by 859.1% during 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 period. Finally, Morgan Stanley boosted its stake in Netflix by 903.0% during 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 in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Stock Performance

Shares of NASDAQ NFLX opened at $81.72 on Monday. The firm’s 50 day moving average price is $74.65 and its 200-day moving average price is $84.35. Netflix, Inc. has a 52-week low of $65.08 and a 52-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 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.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating 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 during the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter last year, the firm earned $0.72 earnings per share. The firm’s quarterly revenue was up 13.4% compared to the same quarter last year. On average, equities research analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have weighed in on NFLX. Wolfe Research restated an “outperform” rating and issued a $95.00 price objective (up from $84.00) on shares of Netflix in a report on Tuesday, August 25th. TD Cowen lowered their target price on shares of Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a report on Friday, July 17th. Stephens assumed coverage on Netflix in a research note on Friday, July 17th. They issued an “overweight” rating on the stock. Seaport Research Partners lowered Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Finally, Robert W. Baird set a $90.00 price objective on Netflix and gave the company an “outperform” rating in a research note on Wednesday, July 22nd. 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 issued a Sell rating to the stock. According to MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $103.19.

More Netflix News

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 Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard N. Barton sold 2,160 shares of the company’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the transaction, the director directly owned 246 shares in the company, valued at approximately $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 213,595 shares of company stock worth $15,812,072. Insiders own 1.24% of the company’s stock.

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.