Two Sigma Securities LLC Makes New $3.47 Million Investment in Netflix, Inc. $NFLX

Two Sigma Securities LLC bought a new position in Netflix, Inc. (NASDAQ:NFLX) in the second quarter, Holdings Channel.com reports. The firm bought 48,597 shares of the Internet television network’s stock, valued at approximately $3,470,000.

A number of other hedge funds also recently made changes to their positions in NFLX. Imprint Wealth LLC bought a new stake in Netflix during the 3rd quarter worth $25,000. Wealth Watch Advisors INC bought a new position in Netflix in the third quarter valued at about $103,000. Strategic Wealth Investment Group LLC acquired a new stake in shares of Netflix during the second quarter valued at about $121,000. Wiser Advisor Group LLC acquired a new stake in shares of Netflix during the third quarter valued at about $114,000. Finally, Beaird Harris Wealth Management LLC grew its holdings in shares of 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. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on NFLX. KGI Securities downgraded Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective for the company. in a research note on Friday, July 17th. TD Cowen reduced their target price on shares of Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a report on Friday, July 17th. BMO Capital Markets restated an “outperform” rating on shares of Netflix in a research report on Friday, August 14th. Seaport Research Partners downgraded shares of Netflix from a “buy” rating to a “neutral” rating in a research note on Monday, July 20th. Finally, Jefferies Financial Group cut their price target on shares of Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a report on Wednesday, June 10th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $103.19.

Netflix Price Performance

Netflix stock opened at $81.72 on Monday. The stock’s 50 day moving average is $74.65 and its 200 day moving average is $84.35. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a market cap 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. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate 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 return on equity of 40.02% and a net margin of 28.22%.The firm’s revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.72 earnings per share. As a group, research analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

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 Transactions at Netflix

In related news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the transaction, the chief executive officer owned 206,266 shares of the company’s stock, valued at $15,063,605.98. This trade represents a 33.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, CFO Spencer Adam Neumann sold 9,248 shares of the business’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the transaction, 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 position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 213,595 shares of company stock worth $15,812,072. Company insiders own 1.24% of the company’s stock.

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.