Netflix, Inc. $NFLX Stock Holdings Lifted by Rakuten Investment Management Inc.

Rakuten Investment Management Inc. increased its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 15.7% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,014,525 shares of the Internet television network’s stock after acquiring an additional 137,713 shares during the quarter. Netflix accounts for about 0.2% of Rakuten Investment Management Inc.’s holdings, making the stock its 27th largest position. Rakuten Investment Management Inc.’s holdings in Netflix were worth $74,852,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in NFLX. RB Capital Management LLC boosted its stake in Netflix by 0.5% in the 2nd quarter. RB Capital Management LLC now owns 41,634 shares of the Internet television network’s stock worth $2,973,000 after purchasing an additional 211 shares during the period. Leo H. Evart Inc. raised its stake in Netflix by 417.6% during the 2nd quarter. Leo H. Evart Inc. now owns 471 shares of the Internet television network’s stock valued at $34,000 after purchasing an additional 380 shares during the period. Fulcrum Asset Management LLP acquired a new stake in Netflix during the 2nd quarter valued at $1,583,000. Glenview Trust Co purchased a new stake in shares of Netflix in the second quarter valued at $1,570,000. Finally, North Star Asset Management Inc. lifted its holdings in shares of Netflix by 24.0% in the second quarter. North Star Asset Management Inc. now owns 3,173 shares of the Internet television network’s stock valued at $227,000 after purchasing an additional 614 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Trending Headlines about Netflix

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 news, CEO Theodore A. Sarandos sold 105,850 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the sale, the chief executive officer directly owned 206,266 shares of the company’s stock, valued at $15,063,605.98. This trade represents a 33.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 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. Also, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 600,295 shares of company stock worth $49,056,671. Insiders own 1.24% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Oppenheimer set a $85.00 target price on Netflix and gave the stock an “outperform” rating in a research report on Friday, July 17th. Barclays dropped their price target on Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Friday, July 17th. UBS Group decreased their price objective on Netflix from $130.00 to $115.00 and set a “buy” rating for the company in a research report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $110.00 price objective on Netflix in a research report on Monday, July 20th. Finally, Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. 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 issued a Sell rating to the stock. Based on data from MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and an average target price of $103.19.

Netflix Trading Up 2.4%

Netflix stock opened at $81.72 on Friday. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. 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. The company’s fifty day simple moving average is $74.65 and its 200-day simple moving average is $84.33.

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

About Netflix

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.