Great Lakes Advisors LLC Takes Position in Netflix, Inc. $NFLX

Great Lakes Advisors LLC bought a new position in Netflix, Inc. (NASDAQ:NFLX) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 124,808 shares of the Internet television network’s stock, valued at approximately $8,911,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of NFLX. Brighton Jones LLC grew its position in Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after buying an additional 257 shares during the period. Revolve Wealth Partners LLC boosted its stake in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after acquiring an additional 144 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in shares of Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after acquiring an additional 246 shares in the last quarter. Strategic Investment Advisors MI grew its position in shares of Netflix by 18.9% during the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after acquiring an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. grew its position in shares of Netflix by 12.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after acquiring an additional 228 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on NFLX. Sanford C. Bernstein set a $95.00 price target on Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Oppenheimer set a $85.00 price objective on Netflix and gave the company an “outperform” rating in a report on Friday, July 17th. Piper Sandler restated an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Pivotal Research decreased their target price on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Finally, TD Cowen dropped their price target on shares of Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Four equities research 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. According to data from MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and an average target price of $103.48.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returns: Pershing Square disclosed a roughly 4.9% portfolio position in Netflix, reversing its earlier exit at a reported loss of about $400 million. Ackman’s renewed conviction reflects expectations for double-digit revenue growth, margin expansion and continued streaming leadership. What’s Going On With Netflix Stock Wednesday?
• Positive Sentiment: Advertising remains a growth catalyst: Analysts highlighted Netflix’s rapidly scaling ad-supported business, including new advertising tools and live programming that could help generate billions in ad revenue and support longer-term revenue expansion. NFLX’s Ad Business Focus
• Positive Sentiment: Valuation attracts bargain hunters: With the stock down about 43% from its peak and trading near 21 times forward earnings, investors are comparing Netflix’s valuation with prior major pullbacks and arguing that the risk-reward profile has improved. Several commentators and CNBC’s Jason Snipe also endorsed the shares. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Broader market rotation helped: Netflix participated in a shift away from semiconductor stocks and toward beaten-down software and technology shares. This suggests part of the move reflected sector positioning rather than a new company-specific operating announcement. Netflix, Salesforce, and Adobe Rally
• Negative Sentiment: Copyright lawsuit adds risk: The band Demon Hunter sued Netflix over the title and alleged intellectual-property issues involving KPop Demon Hunters. The legal action introduces potential costs and reputational risk, although its financial impact is currently unclear. Netflix sued by band Demon Hunter

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the company’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 sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated 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 sale, 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last 90 days. Corporate insiders own 1.24% of the company’s stock.

Netflix Price Performance

Shares of Netflix stock opened at $80.22 on Thursday. The stock has a market capitalization of $334.03 billion, a P/E ratio of 25.25, a PEG ratio of 0.98 and a beta of 1.52. The business has a 50 day simple moving average of $74.43 and a two-hundred day simple moving average of $84.39. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the company posted $0.72 earnings per share. The business’s revenue was up 13.4% on a year-over-year basis. As a group, analysts predict 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.