Twin Lakes Capital Management LLC Raises Position in Netflix, Inc. $NFLX

Twin Lakes Capital Management LLC lifted its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 55.8% during the second quarter, HoldingsChannel reports. The fund owned 57,624 shares of the Internet television network’s stock after acquiring an additional 20,644 shares during the quarter. Netflix comprises 1.6% of Twin Lakes Capital Management LLC’s holdings, making the stock its 20th biggest position. Twin Lakes Capital Management LLC’s holdings in Netflix were worth $4,114,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. Imprint Wealth LLC acquired a new position in Netflix during the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC purchased a new position in shares of Netflix during the 4th quarter worth approximately $26,000. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of Netflix in the 2nd quarter valued at approximately $26,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Netflix in the 4th quarter valued at approximately $26,000. Finally, Jessup Wealth Management Inc purchased a new stake in shares of Netflix in the fourth quarter valued at approximately $27,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Stock Up 2.4%

NFLX opened at $81.72 on Friday. The business’s fifty day moving average is $74.65 and its two-hundred day moving average is $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. The company 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. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71.

Netflix (NASDAQ:NFLX) last posted its 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 for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the company earned $0.72 earnings per share. Netflix’s revenue was up 13.4% compared to the same quarter last year. Analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Trending Headlines about 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

Analyst Ratings Changes

Several research analysts have issued reports on NFLX shares. Deutsche Bank Aktiengesellschaft set a $110.00 price objective on Netflix in a research report on Monday, July 20th. China Intl Cap raised shares of Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. JPMorgan Chase & Co. cut their price target on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. Finally, Wedbush decreased their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. Four equities 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, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $103.19.

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. This trade represents a 33.91% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 in the last quarter. 1.24% of the stock is owned by corporate 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.