Sei Investments Co. Grows Stake in Netflix, Inc. $NFLX

Sei Investments Co. increased its stake in shares of Netflix, Inc. (NASDAQ:NFLX) by 9.9% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 5,226,023 shares of the Internet television network’s stock after purchasing an additional 470,424 shares during the period. Sei Investments Co.’s holdings in Netflix were worth $502,481,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently modified their holdings of the stock. Alamar Capital Management LLC purchased a new position in Netflix in the 1st quarter valued at about $3,020,000. Davis R M Inc. increased its stake in Netflix by 6.9% during the 1st quarter. Davis R M Inc. now owns 303,508 shares of the Internet television network’s stock worth $29,182,000 after buying an additional 19,531 shares in the last quarter. Sycale Advisors NY LLC purchased a new stake in Netflix during the 1st quarter worth approximately $13,305,000. Cetera Investment Advisers raised its holdings in shares of Netflix by 5.0% during the first quarter. Cetera Investment Advisers now owns 1,486,874 shares of the Internet television network’s stock valued at $142,963,000 after acquiring an additional 70,720 shares during the last quarter. Finally, GSG Advisors LLC raised its holdings in shares of Netflix by 7.1% during the first quarter. GSG Advisors LLC now owns 3,244 shares of the Internet television network’s stock valued at $312,000 after acquiring an additional 216 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Price Performance

NFLX stock opened at $68.53 on Thursday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.41. The business has a 50 day simple moving average of $79.04 and a 200-day simple moving average of $86.31. The firm has a market capitalization of $285.35 billion, a PE ratio of 21.57, a price-to-earnings-growth ratio of 0.86 and a beta of 1.52. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71.

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

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on NFLX shares. Wolfe Research reaffirmed an “outperform” rating and issued a $107.00 price target on shares of Netflix in a research note on Friday, April 17th. Morgan Stanley reissued an “overweight” rating and issued a $90.00 price objective (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. President Capital raised their price objective on Netflix from $133.00 to $134.00 and gave the company a “buy” rating in a report on Tuesday, March 31st. Guggenheim set a $75.00 target price on shares of Netflix and gave the stock a “buy” rating in a research note on Friday, July 17th. Finally, JPMorgan Chase & Co. dropped their target price on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Netflix has an average rating of “Moderate Buy” and an average target price of $103.48.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix’s Q2 results beat EPS expectations, but revenue came in slightly below consensus and management signaled growth could slow to around 12% in Q3, raising concerns about momentum. Netflix Has Plummeted Over the Past Year and Just Dropped Again on Earnings. At 22 Times Profits, Is It a Buy?
• Negative Sentiment: Investors are also reacting to a “valuation reset” and weaker transparency after Netflix said it will report key viewership metrics less often, making it harder to measure progress. Is Netflix Asking Investors To Trust A Story It Will No Longer Tell?
• Negative Sentiment: The selloff has been amplified by bearish calls and articles arguing that sentiment remains weak, with some analysts saying the stock still has room to fall despite the recent drop. ‘Scratching the Surface,’ Says Top Investor About Netflix Stock
• Negative Sentiment: Netflix also completed a $1 billion senior notes offering to refinance debt, which is financially prudent but may reinforce the market’s focus on capital structure rather than growth. Netflix Issues $1 Billion Senior Notes to Refinance Debt

Insider Buying and Selling

In other news, insider David A. Hyman sold 5,722 shares of the business’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total transaction of $503,993.76. Following the transaction, the insider owned 316,100 shares of the company’s stock, valued at approximately $27,842,088. The trade was a 1.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 business’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 directly owned 3,940 shares in the company, valued at approximately $338,721.80. The trade was a 98.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 899,839 shares of company stock worth $80,141,661 over the last quarter. Corporate insiders own 1.24% of the company’s stock.

About Netflix

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.