Avalon Trust Co Makes New $18.92 Million Investment in Netflix, Inc. $NFLX

Avalon Trust Co bought a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 264,958 shares of the Internet television network's stock, valued at approximately $18,918,000. Netflix makes up 1.2% of Avalon Trust Co's investment portfolio, making the stock its 25th largest position.

Several other hedge funds have also modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the period. State Street Corp grew its holdings in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC grew its holdings 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 acquiring an additional 89,558,684 shares during the period. Capital World Investors raised its position in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of Netflix by 685.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock valued at $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. 80.93% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms have recently issued reports on NFLX. Sanford C. Bernstein set a $95.00 price target on Netflix and gave the stock an "outperform" rating in a research report on Friday, July 17th. Pivotal Research cut their target price on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research note on Friday, July 17th. Barclays reduced their target price on Netflix from $85.00 to $80.00 and set an "equal weight" rating on the stock in a report on Friday, July 17th. Raymond James Financial restated a "market perform" rating on shares of Netflix in a research report on Thursday, May 14th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $90.00 price target (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Netflix currently has a consensus rating of "Moderate Buy" and a consensus price target of $103.48.

Netflix Stock Performance

Shares of Netflix stock opened at $78.16 on Friday. The stock's fifty day simple moving average is $74.67 and its 200 day simple moving average is $84.54. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $325.45 billion, a PE ratio of 24.60, a PEG ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71.

Netflix (NASDAQ:NFLX - Get Free Report) last posted 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 analysts' expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company'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, research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction that occurred on 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 approximately $15,063,605.98. This represents a 33.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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, CFO Spencer Adam Neumann sold 9,248 shares of the firm's stock in a transaction that occurred 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 sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. This trade represents a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 600,295 shares of company stock worth $49,056,671 in the last three months. 1.24% of the stock is owned by corporate insiders.

Key Stories Impacting 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 Company 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.

Want to see what other hedge funds are holding NFLX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Netflix, Inc. (NASDAQ:NFLX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source