Cornerstone Advisors LLC Acquires Shares of 411,281 Netflix, Inc. $NFLX

Cornerstone Advisors LLC bought a new stake in Netflix, Inc. (NASDAQ:NFLX) in the 2nd quarter, Holdings Channel.com reports. The firm bought 411,281 shares of the Internet television network’s stock, valued at approximately $29,365,000. Netflix accounts for about 1.0% of Cornerstone Advisors LLC’s holdings, making the stock its 22nd largest position.

A number of other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted 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 buying an additional 351,493,659 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Netflix during the second quarter worth approximately $24,902,221,000. State Street Corp increased its holdings in shares of Netflix by 927.6% in 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 acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC increased its holdings in shares of Netflix by 892.0% in the 4th 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 acquiring an additional 89,558,684 shares during the period. Finally, Capital World Investors raised its position in Netflix by 859.1% in the 4th 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 during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

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 Trading Down 2.7%

NASDAQ NFLX opened at $76.02 on Tuesday. The stock has a market capitalization 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, Inc. has a 52-week low of $65.08 and a 52-week high of $126.71. The firm has a 50-day moving average price of $74.53 and a 200 day moving average price of $84.46. 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 announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating 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 company had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the previous year, the company earned $0.72 EPS. The firm’s revenue for the quarter was up 13.4% compared to the same quarter last year. Equities research analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Wall Street Analyst Weigh In

NFLX has been the topic of several research reports. Weiss Ratings downgraded shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, June 26th. Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. Guggenheim set a $75.00 target price on shares of Netflix and gave the stock a “buy” rating in a research note on Friday, July 17th. KGI Securities lowered Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target on the stock. in a report on Friday, July 17th. Finally, Jefferies Financial Group lowered their price target on Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a report on Wednesday, June 10th. Four research 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 issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $103.48.

Insider Transactions at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company’s stock, valued at approximately $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the business’s 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 sale, the chief executive officer owned 120,931 shares in the company, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is owned by company insiders.

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.