Rational Advisors Inc. Acquires 71,282 Shares of Netflix, Inc. $NFLX

Rational Advisors Inc. lifted its holdings in Netflix, Inc. (NASDAQ:NFLX) by 235.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 101,534 shares of the Internet television network’s stock after buying an additional 71,282 shares during the quarter. Netflix makes up about 0.7% of Rational Advisors Inc.’s holdings, making the stock its 29th biggest holding. Rational Advisors Inc.’s holdings in Netflix were worth $7,250,000 at the end of the most recent quarter.

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

Analysts Set New Price Targets

NFLX has been the topic of several recent research reports. Citigroup restated a “market perform” rating on shares of Netflix in a research note on Monday, August 17th. Jefferies Financial Group lowered their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research note on Wednesday, June 10th. Guggenheim set a $75.00 target price on Netflix and gave the stock a “buy” rating in a report on Friday, July 17th. Moffett Nathanson dropped their target price on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, June 17th. Finally, The Goldman Sachs Group downgraded Netflix from an “underweight” rating to a “sell” rating in a report on Monday, July 20th. Four investment 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 given a Sell rating to the company. According to MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and a consensus target price of $103.19.

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

Insider Transactions at Netflix

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the business’s 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 completion of the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Reed Hastings sold 386,700 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director owned 3,940 shares in the company, valued at $338,721.80. This represents a 98.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 600,295 shares of company stock valued at $49,056,671. Insiders own 1.24% of the company’s stock.

Netflix Price Performance

Shares of NFLX opened at $81.72 on Friday. The company has a market capitalization of $340.28 billion, a P/E ratio of 25.72, a price-to-earnings-growth ratio of 1.03 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. The firm has a 50 day moving average of $74.65 and a 200 day moving average of $84.33. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) 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 business had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the prior year, the firm posted $0.72 EPS. The firm’s quarterly revenue was up 13.4% on a year-over-year basis. As a group, equities research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Netflix Company 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.