Portfolio Design Labs LLC Makes New $3.57 Million Investment in Netflix, Inc. $NFLX

Portfolio Design Labs LLC purchased a new position in Netflix, Inc. (NASDAQ:NFLX) during the second quarter, Holdings Channel reports. The fund purchased 50,030 shares of the Internet television network’s stock, valued at approximately $3,572,000.

A number of other hedge funds also recently made changes to their positions in the stock. Pacific Sun Financial Corp increased its stake in Netflix by 1.6% in the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock valued at $688,000 after acquiring an additional 9 shares during the last quarter. Beaird Harris Wealth Management LLC lifted its stake in Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after purchasing an additional 10 shares during the last quarter. Monograph Wealth Advisors LLC lifted its stake in Netflix by 1.8% during the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock worth $913,000 after purchasing an additional 12 shares during the last quarter. Resources Management Corp CT ADV boosted its holdings in shares of Netflix by 2.0% in the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock worth $1,110,000 after purchasing an additional 16 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. boosted its holdings in shares of Netflix by 1.4% in the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock worth $2,009,000 after purchasing an additional 20 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

NFLX has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft set a $110.00 price objective on Netflix in a report on Monday, July 20th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Netflix in a research note on Friday, August 14th. Seaport Research Partners cut shares of Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Morgan Stanley reissued an “overweight” rating and set a $90.00 price target (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Finally, Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Netflix has an average rating of “Moderate Buy” and a consensus target price of $103.48.

Netflix Stock Performance

Shares of NFLX stock opened at $80.14 on Friday. The stock has a fifty day moving average of $74.40 and a 200 day moving average of $84.37. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71. The firm has a market capitalization of $333.70 billion, a price-to-earnings ratio of 25.23, a PEG ratio of 1.01 and a beta of 1.52. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business 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 EPS. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. As a group, research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square rebuilt a major position. The investment firm’s purchase, despite previously taking a reported $400 million loss on Netflix, signals confidence in the company’s long-term growth, competitive position and leadership. The disclosure helped support a recent increase in NFLX shares. Netflix Moved, What Is Drawing Attention Now?
• Positive Sentiment: Analysts see advertising as a significant growth opportunity. Netflix is expanding its ad-supported business through live programming, new ad technology and additional tools for marketers. The company is targeting substantial future advertising revenue, which could diversify its sales base and support continued revenue expansion. NFLX’s Ad Business Focus
• Positive Sentiment: Valuation has become more attractive after the selloff. Netflix trades at roughly 21 times forward earnings in the cited analysis, a level viewed as more reasonable than during prior periods of comparable declines. A CNBC contributor also recommended Netflix, reinforcing the bullish case among some investors. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Co-founder Reed Hastings discussed Netflix’s performance-focused culture. Hastings said companies should operate as teams rather than families, making workforce reductions easier when employees do not meet expectations. The comments revisit Netflix’s 2001 layoffs but do not represent a new operating announcement. Reed Hastings Says Companies Aren’t Families
• Negative Sentiment: YouTube is reportedly trying to prevent creators from signing with Netflix. YouTube is offering creators millions of dollars and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could raise Netflix’s content-acquisition costs and make it harder to secure popular creator-led programming. YouTube Offers Creators Millions to Avoid Netflix Deals
• Negative Sentiment: Netflix faces a lawsuit from the band Demon Hunter. The group alleges that Netflix’s KPop Demon Hunters infringes its rights. The case creates legal and reputational risk, although the financial impact is currently unclear. Netflix Sued by Band Demon Hunter

Insider Activity

In related news, Director Richard N. Barton sold 2,160 shares of the business’s stock in a transaction dated 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 owned 246 shares in the company, valued at $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is owned by company insiders.

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.