In a recent filing with the Securities and Exchange Commission, First Bank & Trust announced its purchase of a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the second quarter of this year. The bank acquired 496 shares of the popular Internet television network’s stock, valued at approximately $218,000.
Netflix recently released its quarterly earnings results for the quarter ending on July 19th. The company reported earnings per share (EPS) of $3.29, surpassing analysts’ consensus estimates of $2.85 by $0.44. Throughout the quarter, Netflix generated revenue amounting to $8.19 billion, slightly lower than the consensus estimate of $8.29 billion.
The streaming giant achieved a return on equity of 19.76% and a net margin of 13.22%. It is worth noting that Netflix’s revenue increased by 2.7% compared to the same quarter in the previous year when it posted earnings per share of $3.20.
Financial experts anticipate that Netflix will post an EPS of 11.92 for the current fiscal year—an encouraging projection considering its consistent growth trajectory.
Various research analysts have shared their insights on NFLX shares as well. For instance, Robert W. Baird upgraded Netflix’s rating from “neutral” to “outperform” and raised their target price from $340 to $500 in an influential research note published on July 24th.
Similarly, Wedbush also increased their target price for Netflix from $475 to $525 while maintaining an “outperform” rating in their research note on July 20th.
On the other hand, Evercore ISI lowered their target price from $550 to $500 and assigned an “outperform” rating to the stock in a research note released earlier this month.
Piper Sandler adjusted their price target upward from $350 to $440 and expressed confidence in Netflix’s performance in their research note on July 20th.
In a noteworthy move, The Goldman Sachs Group upgraded Netflix from a “sell” rating to “neutral” and raised their price target for the company from $230 to $400, reflecting an improved outlook.
Considering the overall analyst sentiment, data from Bloomberg.com indicates that NFLX currently holds a consensus rating of “Moderate Buy.” Moreover, analysts have assigned an average target price of $431.44 for Netflix’s stock.
It is worth mentioning that these ratings and target prices are subject to change as market conditions evolve. Nonetheless, they provide valuable insights into investor sentiments regarding Netflix’s future prospects.
Overall, &First Bank & Trust’s recent purchase of Netflix shares highlights the growing confidence in the company’s financial performance. With positive quarterly earnings results and favorable ratings from multiple research analysts, Netflix continues to solidify its position as a leading player in the streaming industry.
LPL Financial Holdings Inc.
LPLA
Strong Buy
Updated on: 19/09/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Buy
Institutional Investors and Insiders’ Activities Influence Netflix’s Stock Performance
In recent months, there have been significant modifications to the holdings of Netflix by various institutional investors and hedge funds. Cedar Brook Financial Partners LLC, for example, increased its position in the company by 3.6% during the second quarter. This allowed them to acquire an additional 26 shares, bringing their total ownership to 748 shares worth $329,000.
Dudley Capital Management LLC also grew its stake in Netflix by 2.0% during the first quarter, acquiring an additional 30 shares which valued at $536,000. Similarly, Retirement Group LLC experienced a significant increase of 52.6% in their stake during the same period. They now own 87 shares worth $30,000.
Oliver Lagore Vanvalin Investment Group increased their stake in Netflix by 4.8% during the first quarter as well. This resulted in their ownership of 652 shares valued at $225,000 after purchasing an additional 30 shares. Lastly, Duncker Streett & Co. Inc saw a growth of 5.5% in their stake during the first quarter too. They now hold 595 shares which amounts to $206,000 after purchasing an additional 31 shares.
It is notable that these institutional investors collectively own approximately 79.95% of Netflix’s stock, highlighting their significant influence and involvement in the company’s overall performance.
In other news related to Netflix’s stock activity, Chairman Reed Hastings recently sold a substantial number of shares. On July 3rd, he sold a total of 23,415 shares at an average price of $436.92 per share with a total value amounting to $10,230,481.80 USD. This transaction was disclosed through a filing with the Securities & Exchange Commission.
Additionally, Director Timothy M. Haley also sold off some of his Netflix stock on July 5th with a total transaction value of $460,094.18 USD. The average price of each share sold by Haley was $450.19, and the details regarding this transaction are available in a legal filing with the SEC.
Lastly, Chairman Reed Hastings executed another sale of 23,415 shares on July 3rd at an average stock price of $436.92 per share, resulting in a total value of $10,230,481.80 USD. Full disclosure on this sale can be found here. Overall, insiders have collectively sold off 125,377 shares over the past 90 days, amounting to a value of $54,547,674. It is worth mentioning that insiders currently own 2.45% of Netflix’s outstanding shares.
As for Netflix’s market performance on September 19th, it opened at a trading price of $394.40 per share on NASDAQ stock exchange. Over the past year, the company has experienced significant fluctuations in its stock price with a low of $211.73 and a high of $485.00.
From a technical perspective, Netflix has displayed a 50-day moving average price of $430.91 and a 200-day moving average price of $384.60 which indicates some volatility in recent times. With regards to its financial indicators, the company boasts a debt-to-equity ratio of 0.62 along with a current ratio and quick ratio both standing at 1.33.
Netflix currently holds a market capitalization totaling approximately $174.78 billion while maintaining an attractive price-to-earnings ratio (P/E) of 42 and PEG ratio (P/E to growth) is relatively healthy at 1 Figure.Perhaps one reason for its popularity is its beta coefficient of 1+29., which demonstrates robust sensitivity to market changes.
In conclusion,the recent adjustments made by institutional investors and hedge funds signify their confidence in Netflix’s future prospects.Following several insider share sales, attention should be given to how these sell-offs might impact the market sentiment. Consequently, prospective investors should consider this data along with other relevant factors when deciding to include Netflix in their investment portfolios.
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