Conway Capital Management Inc. Acquires New Holdings in Netflix, Inc. $NFLX

Conway Capital Management Inc. bought a new stake in Netflix, Inc. (NASDAQ:NFLX) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 172,510 shares of the Internet television network’s stock, valued at approximately $12,317,000. Netflix comprises approximately 5.5% of Conway Capital Management Inc.’s holdings, making the stock its 6th biggest holding.

Other hedge funds also recently bought and sold shares of the company. Brighton Jones LLC raised its stake in shares of Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after acquiring an additional 257 shares during the period. Revolve Wealth Partners LLC boosted its position in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after purchasing an additional 144 shares during the period. Sivia Capital Partners LLC increased its holdings in Netflix by 21.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after purchasing an additional 246 shares during the last quarter. Strategic Investment Advisors MI increased its holdings in Netflix by 18.9% in the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after purchasing an additional 123 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its holdings in Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after purchasing an additional 228 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Sanford C. Bernstein set a $95.00 price target on Netflix and gave the stock an “outperform” rating in a research note on Friday, July 17th. Citic Securities lifted their price objective on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research note on Monday, April 27th. Erste Group Bank downgraded Netflix from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Phillip Securities raised Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Finally, KGI Securities cut Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price for the company. in a report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here’s Why Investors Should Care.
• Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
• Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
• Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
• Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.

Insider Activity

In other news, Director Reed Hastings sold 386,700 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the completion of the transaction, the director directly owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,248 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the sale, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 600,295 shares of company stock worth $49,056,671 over the last three months. Company insiders own 1.24% of the company’s stock.

Netflix Stock Performance

Shares of NFLX stock opened at $76.02 on Tuesday. The firm has a 50 day moving average of $74.53 and a two-hundred day moving average of $84.46. The stock has a market capitalization of $316.54 billion, a PE ratio of 23.93, a P/E/G ratio of 0.98 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. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data 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 for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company’s revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.72 earnings per share. On average, research analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

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.