GAMMA Investing LLC Sells 11,402 Shares of Netflix, Inc. $NFLX

GAMMA Investing LLC lessened its stake in Netflix, Inc. (NASDAQ:NFLX) by 9.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 112,063 shares of the Internet television network’s stock after selling 11,402 shares during the period. GAMMA Investing LLC’s holdings in Netflix were worth $8,001,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of NFLX. Vanguard Group Inc. lifted its holdings in shares of Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the last quarter. State Street Corp increased its stake in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC raised its position in Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors raised its position 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 valued at $8,376,656,000 after purchasing an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley lifted its stake in Netflix by 903.0% during the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after purchasing an additional 76,840,318 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: Netflix’s cloud-gaming initiative is showing strong early traction: monthly players have increased 11-fold since October, potentially creating a new engagement and growth engine beyond traditional streaming and mobile games. Can NFLX Stock Compound Its Way Higher?
• Positive Sentiment: Some analysts and investors view NFLX as increasingly attractive after its recent decline, citing Netflix’s scale, brand strength, content library and competitive moat. Longer-term shareholder returns also remain positive despite recent weakness. NFLX Stock Looks Attractive Even as Growth Slows Rivals’ Loss Signals Netflix’s Strong Moat
• Positive Sentiment: Commentary on Netflix’s buybacks and business economics provides potential valuation support, particularly with the shares trading well below their 52-week high and at a lower earnings multiple than earlier in the year. Netflix’s Stock Buybacks: History & Impact Explained
• Neutral Sentiment: Netflix’s latest reported quarter slightly exceeded earnings expectations, but revenue was just below consensus. Sales still grew 13.4% year over year, indicating continued expansion while also confirming that growth is moderating.
• Negative Sentiment: Wall Street is concerned that Netflix may have an engagement problem, especially as the company releases less viewing and engagement data. Reduced transparency could make it harder for investors to evaluate content performance and user momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: YouTube Premium’s planned bundle with Peacock and NBCUniversal sports highlights the growing competition for streaming subscribers, viewing time and entertainment budgets. This could pressure Netflix’s perceived growth rate and valuation. Is YouTube Going After Netflix?

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the business’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $6,563,353.65. The trade was a 11.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the sale, the director owned 79,690 shares of the company’s stock, valued at $6,177,568.80. The trade was a 31.11% 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. Insiders sold 598,140 shares of company stock worth $49,430,381 over the last quarter. Company insiders own 1.24% of the company’s stock.

Netflix Stock Performance

NASDAQ NFLX opened at $73.57 on Wednesday. The company has a 50-day simple moving average of $76.08 and a two-hundred day simple moving average of $85.15. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The firm has a market cap of $306.34 billion, a price-to-earnings ratio of 23.16, a PEG ratio of 0.92 and a beta of 1.52. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping 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 firm had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter in the previous year, the business earned $0.72 earnings per share. The company’s quarterly revenue was up 13.4% on a year-over-year basis. On average, equities analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of research reports. Daiwa Securities Group upped their price objective on Netflix from $97.00 to $102.00 and gave the stock an “outperform” rating in a report on Thursday, April 23rd. KeyCorp reissued an “overweight” rating and set a $92.00 price objective (down from $115.00) on shares of Netflix in a report on Monday, July 13th. Stephens started coverage on Netflix in a research report on Friday, July 17th. They issued an “overweight” rating for the company. Barclays cut their target price on Netflix from $85.00 to $80.00 and set an “equal weight” rating for the company in a research note on Friday, July 17th. Finally, Citic Securities increased their price target on shares of Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research report on Monday, April 27th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $103.48.

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.