QV Investors Inc. Buys 139,170 Shares of Netflix, Inc. $NFLX

QV Investors Inc. raised its stake in shares of Netflix, Inc. (NASDAQ:NFLX) by 153.1% in the second quarter, Holdings Channel.com reports. The institutional investor owned 230,060 shares of the Internet television network’s stock after buying an additional 139,170 shares during the quarter. Netflix makes up about 1.3% of QV Investors Inc.’s holdings, making the stock its 29th largest holding. QV Investors Inc.’s holdings in Netflix were worth $16,426,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of NFLX. Imprint Wealth LLC purchased a new stake in Netflix during the third quarter valued at $25,000. Cornerstone Financial Management LLC purchased a new position in Netflix in the fourth quarter worth about $26,000. Clal Insurance Enterprises Holdings Ltd purchased a new position in Netflix in the second quarter worth about $26,000. Atlas Capital Advisors Inc. bought a new stake in shares of Netflix during the 4th quarter valued at about $26,000. Finally, Jessup Wealth Management Inc bought a new stake in shares of Netflix during the 4th quarter valued at about $27,000. 80.93% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

NFLX has been the topic of several recent research reports. Pivotal Research lowered their price objective on shares of Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research note on Friday, July 17th. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the company an “equal weight” rating in a report on Friday, July 17th. Oppenheimer set a $85.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research report on Friday, July 17th. Wedbush dropped their price target on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th. Finally, Piper Sandler reiterated an “overweight” rating and set a $85.00 price target (down from $115.00) on shares of Netflix in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $103.19.

Netflix Stock Performance

Shares of NASDAQ:NFLX opened at $81.72 on Monday. The stock has a 50 day moving average of $74.65 and a 200 day moving average of $84.35. The company has a market cap of $340.28 billion, a PE ratio of 25.72, a price-to-earnings-growth ratio of 1.03 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71.

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

Insiders Place Their Bets

In other news, CFO Spencer Adam Neumann sold 9,248 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, 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 legal filing with the SEC, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 213,595 shares of company stock valued at $15,812,072. Insiders own 1.24% of the company’s stock.

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

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.