Netflix, Inc. $NFLX Shares Sold by Davidson Investment Advisors

Davidson Investment Advisors trimmed its holdings in Netflix, Inc. (NASDAQ:NFLX) by 5.4% during the second quarter, Holdings Channel.com reports. The fund owned 249,653 shares of the Internet television network’s stock after selling 14,259 shares during the period. Davidson Investment Advisors’ holdings in Netflix were worth $17,825,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in the business. Imprint Wealth LLC acquired a new stake in shares of Netflix in the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC purchased a new stake in Netflix in the 4th quarter valued at approximately $26,000. Clal Insurance Enterprises Holdings Ltd purchased a new position in Netflix during the second quarter worth $26,000. Atlas Capital Advisors Inc. acquired a new position in shares of Netflix in the fourth quarter worth $26,000. Finally, Jessup Wealth Management Inc acquired a new position in shares of Netflix in the fourth quarter worth $27,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, 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 value of $2,008,524.48. Following the completion of the sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Spencer Adam Neumann sold 9,248 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 600,295 shares of company stock valued at $49,056,671. Company insiders own 1.24% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Barclays decreased their price objective on Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Friday, July 17th. Bank of America restated a “buy” rating and set a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Citigroup reissued a “market perform” rating on shares of Netflix in a research note on Monday, August 17th. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. Finally, Robert W. Baird set a $90.00 price target on Netflix and gave the company an “outperform” rating in a report on Wednesday, July 22nd. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $103.19.

Netflix Stock Performance

NASDAQ NFLX opened at $81.72 on Friday. 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. The firm has a market capitalization of $340.28 billion, a P/E ratio of 25.72, a P/E/G ratio of 1.03 and a beta of 1.52. The business’s 50-day simple moving average is $74.65 and its 200-day simple moving average is $84.33.

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, topping 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 firm had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the prior year, the company earned $0.72 EPS. The firm’s revenue was up 13.4% on a year-over-year basis. Equities analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Key Stories Impacting Netflix

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

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.