Royal London Asset Management Ltd. Trims Stock Holdings in Netflix, Inc. $NFLX

Royal London Asset Management Ltd. decreased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX) by 2.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,809,691 shares of the Internet television network’s stock after selling 83,462 shares during the quarter. Royal London Asset Management Ltd.’s holdings in Netflix were worth $200,612,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also recently made changes to their positions in the stock. Mufg Securities Americas Inc. lifted its position in shares of Netflix by 8.6% during the second quarter. Mufg Securities Americas Inc. now owns 126,824 shares of the Internet television network’s stock worth $9,055,000 after acquiring an additional 10,019 shares in the last quarter. Investors Asset Management of Georgia Inc. GA ADV boosted its stake in Netflix by 1.5% in the 2nd quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 16,525 shares of the Internet television network’s stock worth $1,180,000 after purchasing an additional 250 shares during the period. Ferguson Wellman Capital Management Inc. grew its holdings in Netflix by 25.4% during the 2nd quarter. Ferguson Wellman Capital Management Inc. now owns 10,352 shares of the Internet television network’s stock valued at $739,000 after buying an additional 2,098 shares in the last quarter. Nissay Asset Management Corp Japan grew its holdings in Netflix by 5.4% during the 2nd quarter. Nissay Asset Management Corp Japan now owns 1,268,753 shares of the Internet television network’s stock valued at $90,589,000 after buying an additional 64,808 shares in the last quarter. Finally, Braun Stacey Associates Inc. grew its holdings in Netflix by 9.5% during the 2nd quarter. Braun Stacey Associates Inc. now owns 262,861 shares of the Internet television network’s stock valued at $18,768,000 after buying an additional 22,760 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Trading Up 2.4%

Shares of NFLX opened at $81.72 on Friday. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71. The firm has a market cap of $340.28 billion, a price-to-earnings ratio of 25.72, a PEG ratio of 1.00 and a beta of 1.52. The firm has a 50 day moving average price of $74.65 and a 200-day moving average price of $84.33. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

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

Insider Transactions at Netflix

In related news, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the sale, the chief executive officer directly owned 206,266 shares in the company, valued at $15,063,605.98. This represents a 33.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction that occurred on 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 transaction, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. The trade was 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. In the last 90 days, insiders have sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is currently owned by corporate insiders.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly added approximately 13.1 million Netflix shares, making NFLX one of the hedge fund’s new concentrated holdings. The move may bolster investor confidence in Netflix’s valuation and long-term earnings potential. Bill Ackman portfolio overhaul article
• Positive Sentiment: Analysts and market commentators point to Netflix’s rapidly expanding advertising business, a potential $3 billion advertising revenue opportunity, continued global expansion and margin growth as catalysts for a possible recovery toward $100 and beyond. Record share buybacks could further support earnings per share. Netflix stock price prediction article
• Positive Sentiment: Netflix is being described as an undervalued long-term holding, with bullish arguments centered on double-digit revenue growth, free-cash-flow generation and the ability to monetize live events and lower-priced ad-supported plans. Netflix five-year outlook article
• Neutral Sentiment: The Netflix preview of Grand Theft Auto VI attracted significant online attention and traffic, but the immediate stock-market beneficiary appears to be Take-Two Interactive, the game’s publisher, rather than Netflix. GTA 6 Netflix preview article
• Negative Sentiment: Some analysts argue that Netflix’s growth is moderating and that Alphabet offers stronger diversification, advertising exposure and valuation. Recent commentary also identifies resistance near $82 and muted enthusiasm following the latest earnings report. NFLX versus GOOGL article
• Negative Sentiment: Reported insider activity remains a potential overhang: executives and directors made numerous sales and no purchases over the past six months. Investors may interpret the selling as reduced insider conviction, although it may also reflect routine diversification. Netflix ad monetization and market resistance article

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on NFLX. Citigroup reissued a “market perform” rating on shares of Netflix in a report on Monday, August 17th. Wolfe Research reaffirmed an “outperform” rating and set a $95.00 target price (up from $84.00) on shares of Netflix in a report on Tuesday. Rosenblatt Securities set a $75.00 target price on shares of Netflix and gave the stock a “neutral” rating in a report on Friday, July 17th. Robert W. Baird set a $90.00 target price on shares of Netflix and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. Finally, Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. Four investment 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 issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $103.19.

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.