Netflix, Inc. $NFLX Shares Acquired by QRG Capital Management Inc.

QRG Capital Management Inc. lifted its position in Netflix, Inc. (NASDAQ:NFLX) by 4.1% in the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 861,135 shares of the Internet television network’s stock after purchasing an additional 33,742 shares during the quarter. QRG Capital Management Inc.’s holdings in Netflix were worth $61,485,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in NFLX. BlackRock Inc. purchased a new position in shares of Netflix during the second quarter worth approximately $24,902,221,000. State Street Corp boosted its stake in Netflix by 4.9% during the 2nd quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock worth $12,861,252,000 after purchasing an additional 8,474,820 shares during the period. Geode Capital Management LLC grew its position in Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors increased its stake in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Finally, Norges Bank purchased a new stake in shares of Netflix in the fourth quarter valued at about $5,803,248,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts believe substantial negative sentiment is already reflected in Netflix’s valuation. Supporters point to the company’s strong profitability, continued earnings growth potential and a price-to-earnings ratio near 22, arguing that the pullback could create a longer-term buying opportunity. Netflix Stock Valuations Seem Attractive Amidst Growth Deceleration Concerns
• Positive Sentiment: Netflix’s efforts to expand into live sports, advertising, video podcasts and short-form content could provide new engagement and monetization opportunities. Disney’s higher Disney+ and Hulu prices may also reduce the pricing gap with Netflix’s premium plans, potentially supporting Netflix’s perceived value. Disney Raises Disney+ and Hulu Streaming Prices
• Neutral Sentiment: Wall Street’s outlook is divided. While some investors continue to view Netflix as a high-quality growth company with meaningful earnings potential through 2030, other analysts have sharply reduced their targets, creating unusually wide differences in expectations for the stock.
• Negative Sentiment: HSBC downgraded Netflix to Hold from Buy and cut its price target to $76 from $96, citing a widening viewing-time gap with Alphabet’s YouTube and weaker near-term engagement. The concern is that YouTube is capturing more viewer hours, potentially limiting Netflix’s pricing power, advertising growth and ability to sustain subscriber momentum. This Analyst Just Downgraded Netflix Stock, And YouTube May Be to Blame
• Negative Sentiment: Recent Wells Fargo and Zacks commentary adds to the pressure: Wells Fargo previously cut Netflix to Underweight with a $57 target, while Zacks rates the shares a No. 4, or Sell. Together, the calls have intensified concerns that Netflix’s engagement initiatives may take time to offset rising competition.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on NFLX shares. Phillip Securities raised Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price target on the stock in a report on Sunday, July 19th. Stephens initiated coverage on Netflix in a research note on Friday, July 17th. They set an “overweight” rating for the company. Daiwa Securities Group decreased their price target on Netflix from $102.00 to $76.00 and set an “outperform” rating for the company in a report on Wednesday, July 22nd. Guggenheim set a $75.00 price objective on shares of Netflix and gave the company a “buy” rating in a research report on Friday, July 17th. Finally, Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $95.51.

Netflix Price Performance

NASDAQ:NFLX traded down $0.80 during trading hours on Wednesday, hitting $71.36. The company’s stock had a trading volume of 32,742,656 shares, compared to its average volume of 42,920,652. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $124.86. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The business’s 50-day moving average is $75.78 and its two-hundred day moving average is $83.68. The company has a market capitalization of $297.14 billion, a PE ratio of 22.46, a PEG ratio of 1.03 and a beta of 1.53.

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

Insider Activity

In related news, Director Richard N. Barton sold 720 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $75.27, for a total transaction of $54,194.40. Following the sale, the director owned 2,460 shares of the company’s stock, valued at $185,164.20. This trade represents a 22.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the sale, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 have sold 179,045 shares of company stock valued at $13,132,194 in the last quarter. Insiders own 1.24% of the company’s stock.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.