Kimelman & Baird LLC Boosts Stock Position in Netflix, Inc. $NFLX

Kimelman & Baird LLC lifted its holdings in shares of Netflix, Inc. (NASDAQ:NFLX) by 2,251.2% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 79,823 shares of the Internet television network’s stock after buying an additional 76,428 shares during the quarter. Kimelman & Baird LLC’s holdings in Netflix were worth $5,699,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Imprint Wealth LLC acquired a new position in Netflix during the third quarter worth $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Netflix in the fourth quarter valued at about $26,000. Clal Insurance Enterprises Holdings Ltd acquired a new stake in shares of Netflix in the second quarter valued at about $26,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Netflix during the fourth quarter worth about $26,000. Finally, Jessup Wealth Management Inc purchased a new stake in shares of Netflix during the fourth quarter worth about $27,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix News Summary

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 Buying and Selling

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction on 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 sale, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This trade represents a 18.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer owned 178,954 shares in the company, valued at approximately $13,126,275.90. This represents a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 600,295 shares of company stock worth $49,056,671 over the last quarter. Corporate insiders own 1.24% of the company’s stock.

Netflix Trading Up 2.4%

Shares of Netflix stock opened at $81.72 on Friday. 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 stock’s 50 day simple moving average is $74.65 and its 200-day simple moving average is $84.33. The stock has a market cap of $340.28 billion, a P/E ratio of 25.72, a P/E/G ratio of 1.00 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. Analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on NFLX. Moffett Nathanson reduced their price target on shares of Netflix from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. JPMorgan Chase & Co. cut their price objective on Netflix from $118.00 to $85.00 and set an “overweight” rating for the company in a research note on Friday, July 17th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. KeyCorp restated an “overweight” rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a research report on Monday, July 13th. Finally, Barclays lowered their price target on Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $103.19.

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.