13,294 Shares in Netflix, Inc. $NFLX Purchased by Texas Capital Bank Wealth Management Services Inc

Texas Capital Bank Wealth Management Services Inc purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 13,294 shares of the Internet television network’s stock, valued at approximately $949,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Cornerstone Advisors LLC acquired a new position in shares of Netflix in the 2nd quarter valued at $29,365,000. Banco BTG Pactual S.A. acquired a new stake in Netflix during the 2nd quarter worth $629,000. UNIVEST FINANCIAL Corp acquired a new stake in Netflix during the 2nd quarter worth $1,998,000. Conway Capital Management Inc. bought a new position in Netflix during the second quarter worth about $12,317,000. Finally, Grandfield & Dodd LLC bought a new position in Netflix during the second quarter worth about $356,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on NFLX. Citigroup reissued a “market perform” rating on shares of Netflix in a research note on Monday. Guggenheim set a $75.00 price target on Netflix and gave the stock a “buy” rating in a research report on Friday, July 17th. Barclays cut their price objective on Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a report on Friday, July 17th. Wedbush lowered their target price on Netflix from $118.00 to $105.00 and set an “outperform” rating for the company in a research note on Friday, July 17th. Finally, UBS Group lowered their target price on Netflix from $130.00 to $115.00 and set a “buy” rating for the company in a research note on Friday, July 17th. Four 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 presently has a consensus rating of “Moderate Buy” and a consensus price target of $103.48.

Insiders Place Their Bets

In other Netflix news, Director Richard N. Barton sold 2,160 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the sale, the director owned 246 shares in the company, valued at approximately $18,474.60. The trade was a 89.78% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at approximately $13,126,275.90. This trade represents a 13.24% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 600,295 shares of company stock worth $49,056,671 in the last 90 days. Company insiders own 1.24% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here’s Why Investors Should Care.
• Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
• Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
• Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
• Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.

Netflix Price Performance

NFLX stock opened at $76.02 on Tuesday. The stock has a 50-day moving average price of $74.53 and a two-hundred day moving average price of $84.46. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The stock has a market cap of $316.54 billion, a PE ratio of 23.93, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.72 earnings per share. Equities analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

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.