MJP Associates Inc. ADV Takes $796,000 Position in Netflix, Inc. $NFLX

MJP Associates Inc. ADV purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 11,143 shares of the Internet television network’s stock, valued at approximately $796,000.

Other hedge funds also recently modified their holdings of the company. Vanguard Group Inc. grew its stake in shares of 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 acquiring an additional 351,493,659 shares in the last quarter. Shepherd Street Advisors LLC bought a new position in Netflix during the fourth quarter worth about $2,216,000. Morse Asset Management Inc raised its stake in Netflix by 809.3% in the 4th quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network’s stock worth $6,069,000 after purchasing an additional 57,611 shares in the last quarter. University of Texas Texas AM Investment Management Co. grew its position in shares of Netflix by 798.5% during the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock worth $3,989,000 after purchasing an additional 37,807 shares in the last quarter. Finally, New Mexico Educational Retirement Board grew its position in shares of Netflix by 900.0% during the 4th quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network’s stock worth $18,022,000 after purchasing an additional 172,989 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square rebuilt a major position. The investment firm’s purchase, despite previously taking a reported $400 million loss on Netflix, signals confidence in the company’s long-term growth, competitive position and leadership. The disclosure helped support a recent increase in NFLX shares. Netflix Moved, What Is Drawing Attention Now?
• Positive Sentiment: Analysts see advertising as a significant growth opportunity. Netflix is expanding its ad-supported business through live programming, new ad technology and additional tools for marketers. The company is targeting substantial future advertising revenue, which could diversify its sales base and support continued revenue expansion. NFLX’s Ad Business Focus
• Positive Sentiment: Valuation has become more attractive after the selloff. Netflix trades at roughly 21 times forward earnings in the cited analysis, a level viewed as more reasonable than during prior periods of comparable declines. A CNBC contributor also recommended Netflix, reinforcing the bullish case among some investors. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Co-founder Reed Hastings discussed Netflix’s performance-focused culture. Hastings said companies should operate as teams rather than families, making workforce reductions easier when employees do not meet expectations. The comments revisit Netflix’s 2001 layoffs but do not represent a new operating announcement. Reed Hastings Says Companies Aren’t Families
• Negative Sentiment: YouTube is reportedly trying to prevent creators from signing with Netflix. YouTube is offering creators millions of dollars and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could raise Netflix’s content-acquisition costs and make it harder to secure popular creator-led programming. YouTube Offers Creators Millions to Avoid Netflix Deals
• Negative Sentiment: Netflix faces a lawsuit from the band Demon Hunter. The group alleges that Netflix’s KPop Demon Hunters infringes its rights. The case creates legal and reputational risk, although the financial impact is currently unclear. Netflix Sued by Band Demon Hunter

Insider Activity at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the business’s stock in a transaction 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 completion of the transaction, the chief executive officer owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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. Also, Director Reed Hastings sold 386,700 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 600,295 shares of company stock worth $49,056,671 in the last three months. Insiders own 1.24% of the company’s stock.

Netflix Stock Performance

Shares of NASDAQ:NFLX opened at $80.14 on Friday. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The stock has a market capitalization of $333.70 billion, a price-to-earnings ratio of 25.23, a price-to-earnings-growth ratio of 1.01 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The company’s 50 day simple moving average is $74.40 and its 200 day simple moving average is $84.37.

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

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on NFLX. Rosenblatt Securities set a $75.00 price target on shares of Netflix and gave the company a “neutral” rating in a research report on Friday, July 17th. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Pivotal Research dropped their price objective on Netflix from $96.00 to $70.00 and set a “hold” rating for the company in a report on Friday, July 17th. Piper Sandler reissued an “overweight” rating and set a $85.00 target price (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Finally, Erste Group Bank cut Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $103.48.

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.