Citizens Financial Group Inc. RI Makes New Investment in Netflix, Inc. $NFLX

Citizens Financial Group Inc. RI bought a new stake in Netflix, Inc. (NASDAQ:NFLX) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 310,311 shares of the Internet television network’s stock, valued at approximately $22,156,000.

A number of other hedge funds have also bought and sold shares of NFLX. Texas Capital Bank Wealth Management Services Inc purchased a new position in Netflix in the second quarter worth $949,000. Cornerstone Advisors LLC bought a new stake in shares of Netflix during the 2nd quarter worth $29,365,000. Banco BTG Pactual S.A. purchased a new position in shares of Netflix in the 2nd quarter worth about $629,000. UNIVEST FINANCIAL Corp bought a new position in Netflix during the second quarter valued at about $1,998,000. Finally, Conway Capital Management Inc. bought a new stake in shares of Netflix in the 2nd quarter worth approximately $12,317,000. 80.93% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

NFLX has been the topic of several research analyst reports. Wedbush dropped their price objective on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th. BMO Capital Markets restated an “outperform” rating on shares of Netflix in a research note on Friday. Erste Group Bank cut Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Rosenblatt Securities set a $75.00 price objective on Netflix and gave the stock a “neutral” rating in a report on Friday, July 17th. Finally, Morgan Stanley restated an “overweight” rating and issued a $90.00 price objective (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Insiders Place Their Bets

In other news, Director Reed Hastings sold 386,700 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director directly owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 600,295 shares of company stock worth $49,056,671 over the last quarter. 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 Trading Down 2.7%

NASDAQ:NFLX opened at $76.02 on Tuesday. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The stock’s fifty day moving average price is $74.53 and its two-hundred day moving average price is $84.46. 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 company 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.

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, beating the consensus estimate of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the previous year, the business earned $0.72 earnings per share. The firm’s quarterly revenue was up 13.4% compared to the same quarter last year. As a group, analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

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.