Citizens Financial Group Inc. RI Purchases Shares of 310,311 Netflix, Inc. $NFLX

Citizens Financial Group Inc. RI purchased a new stake in shares of Netflix, Inc. (NASDAQ:NFLX) in the second quarter, HoldingsChannel reports. The institutional investor purchased 310,311 shares of the Internet television network’s stock, valued at approximately $22,156,000.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares in the last quarter. BlackRock Inc. bought a new position in shares of Netflix in the 2nd quarter worth $24,902,221,000. State Street Corp raised its position in shares of Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after buying an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Finally, Capital World Investors lifted its stake in Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Key Netflix News

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 Stock Down 2.7%

NASDAQ:NFLX opened at $76.02 on Tuesday. The firm has a market cap of $316.54 billion, a P/E ratio of 23.93, a P/E/G ratio of 0.98 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. The firm has a 50-day simple moving average of $74.53 and a two-hundred day simple moving average of $84.46. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71.

Netflix (NASDAQ:NFLX) last announced 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. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the business earned $0.72 EPS. The firm’s revenue for the quarter was up 13.4% on a year-over-year basis. Analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. The trade was a 31.11% 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. Over the last three months, insiders sold 600,295 shares of company stock worth $49,056,671. Insiders own 1.24% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on NFLX shares. Jefferies Financial Group cut their price objective on shares of Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research note on Wednesday, June 10th. Daiwa Securities Group raised their price target on Netflix from $97.00 to $102.00 and gave the stock an “outperform” rating in a research report on Thursday, April 23rd. CLSA began coverage on shares of Netflix in a report on Monday, July 20th. They issued an “outperform” rating on the stock. Raymond James Financial restated a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. Finally, BMO Capital Markets reissued an “outperform” rating on shares of Netflix in a research report on Friday. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target 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.