PNC Financial Services Group Inc. Boosts Stake in Netflix, Inc. $NFLX

PNC Financial Services Group Inc. increased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX) by 9.1% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,689,036 shares of the Internet television network’s stock after purchasing an additional 140,389 shares during the quarter. PNC Financial Services Group Inc.’s holdings in Netflix were worth $162,401,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently modified their holdings of the business. First Financial Corp IN lifted its stake in Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 243 shares during the period. DiNuzzo Private Wealth Inc. grew its stake in shares of Netflix by 885.2% in the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 239 shares during the period. Turning Point Benefit Group Inc. grew its stake in shares of Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 268 shares during the period. Imprint Wealth LLC purchased a new position in shares of Netflix during the third quarter valued at approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in shares of Netflix during the fourth quarter valued at approximately $26,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix’s Q2 results beat EPS expectations, but revenue came in slightly below consensus and management signaled growth could slow to around 12% in Q3, raising concerns about momentum. Netflix Has Plummeted Over the Past Year and Just Dropped Again on Earnings. At 22 Times Profits, Is It a Buy?
• Negative Sentiment: Investors are also reacting to a “valuation reset” and weaker transparency after Netflix said it will report key viewership metrics less often, making it harder to measure progress. Is Netflix Asking Investors To Trust A Story It Will No Longer Tell?
• Negative Sentiment: The selloff has been amplified by bearish calls and articles arguing that sentiment remains weak, with some analysts saying the stock still has room to fall despite the recent drop. ‘Scratching the Surface,’ Says Top Investor About Netflix Stock
• Negative Sentiment: Netflix also completed a $1 billion senior notes offering to refinance debt, which is financially prudent but may reinforce the market’s focus on capital structure rather than growth. Netflix Issues $1 Billion Senior Notes to Refinance Debt

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NFLX. BMO Capital Markets cut shares of Netflix from an “outperform” rating to a “market perform” rating in a report on Monday. Morgan Stanley reiterated an “overweight” rating and set a $90.00 target price (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. KeyCorp reissued an “overweight” rating and set a $92.00 price target (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday. Finally, Oppenheimer set a $85.00 price objective on Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $103.48.

Netflix Stock Performance

Shares of NASDAQ NFLX opened at $68.53 on Thursday. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The firm has a market capitalization of $285.35 billion, a price-to-earnings ratio of 21.57, a price-to-earnings-growth ratio of 0.86 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.41 and a debt-to-equity ratio of 0.39. The firm has a 50 day moving average of $79.04 and a 200 day moving average of $86.31.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company’s quarterly revenue was up 13.4% on a year-over-year basis. During the same period last year, the firm earned $0.72 earnings per share. On average, research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Transactions at Netflix

In related news, Director Reed Hastings sold 386,700 shares of the firm’s stock in a transaction 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 directly owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradford L. Smith sold 35,990 shares of Netflix stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% 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. Insiders sold a total of 899,839 shares of company stock worth $80,141,661 over the last three months. 1.24% of the stock is currently owned by insiders.

Netflix Company 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.