Rakuten Securities Inc. Invests $3.81 Million in Netflix, Inc. $NFLX

Rakuten Securities Inc. purchased a new stake in Netflix, Inc. (NASDAQ:NFLX) in the second quarter, according to its most recent filing with the SEC. The fund purchased 53,401 shares of the Internet television network’s stock, valued at approximately $3,813,000. Netflix comprises 0.9% of Rakuten Securities Inc.’s portfolio, making the stock its 19th biggest position.

A number of other institutional investors have also made changes to their positions in NFLX. Brighton Jones LLC boosted its holdings in Netflix by 5.0% in the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock worth $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC increased its stake in Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after purchasing an additional 144 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after purchasing an additional 246 shares during the period. Strategic Investment Advisors MI raised its holdings in shares of Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock worth $1,036,000 after purchasing an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. lifted its position in shares of Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after buying an additional 228 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Stock Performance

Shares of NFLX opened at $79.59 on Friday. The firm has a fifty day moving average of $74.39 and a 200-day moving average of $84.34. The company has a market cap of $331.41 billion, a price-to-earnings ratio of 25.05, a price-to-earnings-growth ratio of 1.01 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current 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 analysts’ consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.72 EPS. As a group, equities analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Transactions at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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. Also, Director Reed Hastings sold 386,700 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the transaction, the director owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 600,295 shares of company stock worth $49,056,671 in the last quarter. 1.24% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
• Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
• Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
• Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
• Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
• Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals

Wall Street Analyst Weigh In

Several research analysts have recently commented on NFLX shares. Guggenheim set a $75.00 price target on shares of Netflix and gave the company a “buy” rating in a report on Friday, July 17th. Oppenheimer set a $85.00 price objective on shares of Netflix and gave the stock an “outperform” rating in a research note on Friday, July 17th. Erste Group Bank cut shares of Netflix from a “buy” rating to a “hold” rating in a report on Monday, April 27th. The Goldman Sachs Group downgraded Netflix from an “underweight” rating to a “sell” rating in a research note on Monday, July 20th. Finally, Jefferies Financial Group lowered 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. Four research 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Netflix presently has an average rating of “Moderate Buy” and an average target price of $103.48.

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.