VELA Investment Management LLC Increases Stock Holdings in Netflix, Inc. $NFLX

VELA Investment Management LLC increased its stake in shares of Netflix, Inc. (NASDAQ:NFLX) by 240.2% during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 19,543 shares of the Internet television network’s stock after acquiring an additional 13,798 shares during the period. VELA Investment Management LLC’s holdings in Netflix were worth $1,395,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Pacific Sun Financial Corp grew its stake in Netflix by 1.6% in the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock worth $688,000 after buying an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC increased its holdings in shares of Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after buying an additional 10 shares during the period. Monograph Wealth Advisors LLC lifted its position in Netflix by 1.8% in the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock valued at $913,000 after purchasing an additional 12 shares during the last quarter. Resources Management Corp CT ADV boosted its position in Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock valued at $1,110,000 after buying an additional 16 shares during the period. Finally, Sompo Asset Management Co. Ltd. increased its holdings in Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock valued at $2,009,000 after purchasing an additional 20 shares during the period. Hedge funds and other institutional investors own 80.93% 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 sold its Alphabet position and purchased approximately 13.1 million Netflix shares in the second quarter, signaling confidence in Netflix’s long-term growth and cash-generation potential. Bill Ackman Dumps Alphabet for Netflix
• Positive Sentiment: Analyst and market commentary points to a possible recovery driven by upcoming content releases, a reported Wolfe Research price target of $95, and a median target of $115 from analysts tracked by Quiver Quantitative. Netflix Recovery and Partnerships
• Positive Sentiment: Netflix’s latest U.K. price increases, including a rise in the ad-supported plan from £5.99 to £7.99 per month, could lift average revenue per member. Historical price increases have reportedly been followed by continued annual revenue growth. Netflix U.K. Price Increase
• Neutral Sentiment: Shares have declined roughly 38% to 40% over the past year, making the valuation more appealing to some investors, but debate remains whether the lower price reflects a buying opportunity or slowing growth. Netflix Stock Price Outlook
• Neutral Sentiment: Netflix’s lack of a dividend makes it less attractive to income investors, although bullish analysts argue that reinvesting cash into content and growth offers better long-term potential. Why Own Netflix Without a Dividend
• Negative Sentiment: The main near-term catalyst weighing on NFLX is the reported Q2 revenue miss and weak Q3 outlook, which raised concerns about slowing subscriber and advertising momentum. Netflix Stock Drops
• Negative Sentiment: Quiver Quantitative reports that Netflix insiders made 24 open-market sales and no purchases during the past six months, a potential confidence signal investors may monitor. Netflix Insider Trading Activity

Netflix Price Performance

NASDAQ NFLX opened at $78.25 on Tuesday. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The stock has a market cap of $325.83 billion, a price-to-earnings ratio of 24.63, a PEG ratio of 1.10 and a beta of 1.53. The company’s 50 day moving average is $75.61 and its two-hundred day moving average is $84.46. 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 (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The business 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 company’s revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.72 earnings per share. As a group, research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity at Netflix

In related news, Director Bradford Smith sold 35,990 shares of the company’s stock in a transaction 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 transaction, the director owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. This represents a 31.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Hyman sold 5,723 shares of the 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 $23,027,885. The trade was a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 213,595 shares of company stock worth $15,812,072 in the last 90 days. Company insiders own 1.24% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. KGI Securities cut shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price for the company. in a research report on Friday, July 17th. CICC Research decreased their target price on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating for the company in a report on Tuesday, July 21st. BMO Capital Markets reissued an “outperform” rating on shares of Netflix in a research report on Friday, August 14th. TD Cowen dropped their price target on Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. Finally, Seaport Research Partners lowered shares of Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $96.65.

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.