Sowell Financial Services LLC Boosts Stake in Netflix, Inc.

Sowell Financial Services LLC has increased its holdings in Netflix, Inc. (NASDAQ:NFLX) by 3.2% during the fourth quarter, as revealed in its latest filing with the Securities and Exchange Commission (SEC). After acquiring an additional 359 shares during this period, the firm now owns a total of 11,469 shares of the Internet television network, valued at approximately $10,222,000.

In addition to Sowell Financial Services LLC, various other institutional investors and hedge funds have also made moves regarding their stakes in Netflix. Swedbank AB, for instance, boosted its holdings by 1.8% in the third quarter, resulting in a total of 465,208 shares worth $329,958,000 after adding 8,024 shares. Principal Financial Group Inc. showed a more considerable increase of 13.3%, owning 1,692,563 shares valued at $1,200,485,000 after adding 198,148 shares. TFB Advisors LLC and Summit Global Investments also raised their shares in the third quarter by 5.6% and 35.0%, respectively.

Insider Trading Activity

In a separate development, Director Strive Masiyiwa sold 2,813 shares on February 6, fetching an average price of $1,007.87, totaling approximately $2,835,138.31. Another notable transaction involved Chairman Reed Hastings, who sold 35,868 shares at an average price of $888.08, bringing in $31,853,653.44. Following this sale, Hastings retains a mere 114 shares valued at around $101,241. As for overall insider trading, over the past 90 days, insiders sold 288,103 shares amounting to $279,142,041. Currently, insiders own about 1.76% of the company's stock.

Current Stock Performance

As of Friday, shares of Netflix traded at $891.11. The company has a fifty-day moving average of $950.26 and a two-hundred-day moving average of $841.52. Netflix's stock shows a one-year low of $542.01 and a high of $1,064.50, with a market capitalization of $381.18 billion. The price-to-earnings (P/E) ratio stands at 44.94, and analysts predict a P/E/G ratio of 2.12, with a beta of 1.38. Additional financial metrics reveal a debt-to-equity ratio of 0.56 and both current and quick ratios of 1.22.

In its latest quarterly earnings report, which was announced on January 21, Netflix reported earnings per share (EPS) of $4.27, surpassing the consensus estimate of $4.20 by $0.07. Year-over-year, these revenue results represent a 16.0% increase, with a reported revenue of $10.25 billion compared to expectations of $10.14 billion. Analysts forecast an EPS of 24.58 for the current year.

Analyst Upgrades and Future Outlook

In light of recent performance, several analysts have updated their ratings for Netflix. Barclays raised its rating from 'underweight' to 'equal weight' and amended its price target from $715.00 to $900.00. Goldman Sachs upped its target price from $850.00 to $960.00, rating the stock as 'neutral'. Meanwhile, KeyCorp revised its price target from $1,000.00 to $1,100.00, giving it an 'overweight' rating. Seaport Research Partners upgraded Netflix from 'hold' to 'strong buy', and Oppenheimer set a new target price of $1,150.00, rating it as 'outperform'. Overall, ten investment analysts have a 'hold' rating, twenty-five have a 'buy' rating, while one analyst has given it a 'strong buy' rating. As per data from MarketBeat.com, Netflix currently maintains an average rating of 'Moderate Buy' and a mean target price of $1,021.70.

About Netflix

Netflix, Inc. is a leading provider of entertainment services, offering a range of TV series, documentaries, feature films, and games across various genres and languages. The company also allows subscribers to stream content through multiple internet-connected devices, including TVs, digital video players, and mobile devices.

Sowell, Netflix, Investments