Wealth Effects LLC Makes New Investment in Netflix, Inc. $NFLX

Wealth Effects LLC acquired a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 6,734 shares of the Internet television network’s stock, valued at approximately $481,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Turning Point Benefit Group Inc. increased its position in Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC bought a new position in Netflix during the third quarter valued at $25,000. Cornerstone Financial Management LLC bought a new position in Netflix during the fourth quarter valued at $26,000. Atlas Capital Advisors Inc. purchased a new position in shares of Netflix in the 4th quarter worth $26,000. Finally, Jessup Wealth Management Inc purchased a new position in shares of Netflix in the 4th quarter worth $27,000. 80.93% of the stock is currently owned by institutional investors.

Netflix Stock Performance

NFLX opened at $78.16 on Monday. The stock has a market cap of $325.45 billion, a price-to-earnings ratio of 24.60, a P/E/G ratio of 0.98 and a beta of 1.52. The stock’s 50 day moving average price is $74.67 and its 200-day moving average price is $84.53. Netflix, Inc. has a one year low of $65.08 and a one year high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business’s revenue was up 13.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.72 earnings per share. On average, equities analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on NFLX shares. Phillip Securities upgraded shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday, July 19th. Raymond James Financial reiterated a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. China Intl Cap raised Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. Sanford C. Bernstein set a $95.00 price objective on Netflix and gave the company an “outperform” rating in a research report on Friday, July 17th. Finally, Moffett Nathanson decreased their price objective on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Netflix has an average rating of “Moderate Buy” and an average price target of $103.48.

Insider Activity

In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of the company’s stock in a transaction on Monday, August 10th. The stock was 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 owned 73,787 shares in the company, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares in the company, valued at $15,063,605.98. This trade represents a 33.91% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is currently owned by corporate insiders.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square disclosed a new Netflix position of approximately 3.15 million shares, representing about 4.9% of the fund’s portfolio. Ackman said Netflix has effectively “won the streaming wars,” renewing investor interest after the stock’s major sell-off. Reuters article
• Positive Sentiment: Analysts and investing commentators point to Netflix’s resilient fundamentals: second-quarter revenue rose 13.4% year over year to $12.6 billion, earnings per share slightly exceeded estimates, and profitability remained strong. The advertising business, expanding margins and a valuation viewed as reasonable relative to growth are supporting the bullish case. Zacks article
• Positive Sentiment: Netflix’s continued push into live sports—including an MLB “Field of Dreams” game—and the extension of its Seinfeld agreement could strengthen engagement, advertising opportunities and content retention. MLB live sports article
• Neutral Sentiment: Institutional positioning is mixed: some large investors added shares while others reduced holdings. Analysts’ reported price targets remain above the current market level, but investors still must weigh valuation and slowing growth expectations.
• Negative Sentiment: Netflix closed its Hollywood-based Night School gaming studio and plans to close Helsinki-based Moonloot. The closures may improve focus and reduce costs, but they also raise questions about the company’s gaming strategy and ability to expand beyond streaming. Los Angeles Times article
• Negative Sentiment: Reported insider trading shows 30 Netflix open-market sales and no purchases over the past six months. While such sales may reflect compensation or diversification, the one-sided pattern can weigh on sentiment and contrasts with Ackman’s new bullish position. Quiver Quantitative article

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.