California State Teachers Retirement System Raises Stock Holdings in Netflix, Inc. $NFLX

Key Points

• California State Teachers Retirement System dramatically increased its Netflix stake by 7,028.2% in the second quarter, acquiring 452.5 million additional shares. It held approximately 11.02% of Netflix, valued at $32.8 billion, while institutional investors collectively owned 80.93% of the company.
• Netflix slightly exceeded quarterly earnings expectations with $0.80 in EPS, while revenue rose 13.4% year over year to $12.56 billion but narrowly missed estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $96.65.
• Company insiders continued selling shares: executives sold stock worth roughly $15.8 million over the past 90 days, including sales by the CFO and an insider to cover tax obligations related to vested equity awards.

California State Teachers Retirement System increased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 7,028.2% in the second quarter, according to its most recent filing with the SEC. The fund owned 458,934,710 shares of the Internet television network's stock after acquiring an additional 452,496,424 shares during the period. California State Teachers Retirement System owned about 11.02% of Netflix worth $32,767,938,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of NFLX. Tanager Wealth Management LLP lifted its holdings in Netflix by 17.9% during the 2nd quarter. Tanager Wealth Management LLP now owns 7,117 shares of the Internet television network's stock valued at $508,000 after buying an additional 1,083 shares in the last quarter. VELA Investment Management LLC grew its stake in Netflix by 240.2% in the 2nd quarter. VELA Investment Management LLC now owns 19,543 shares of the Internet television network's stock worth $1,395,000 after acquiring an additional 13,798 shares in the last quarter. Trans Canada Capital Inc. bought a new position in Netflix in the 2nd quarter worth about $19,438,000. Washington Trust Advisors Inc. increased its position in shares of Netflix by 14.9% during the second quarter. Washington Trust Advisors Inc. now owns 6,719 shares of the Internet television network's stock worth $480,000 after acquiring an additional 873 shares during the period. Finally, Ameritas Advisory Services LLC increased its position in shares of Netflix by 162.7% during the second quarter. Ameritas Advisory Services LLC now owns 49,078 shares of the Internet television network's stock worth $3,504,000 after acquiring an additional 30,395 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix Stock Performance

Shares of NASDAQ:NFLX opened at $78.25 on Tuesday. The company has a market capitalization of $325.83 billion, a PE ratio of 24.63, a P/E/G ratio of 1.10 and a beta of 1.53. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The business's fifty day simple moving average is $75.61 and its 200-day simple moving average is $84.46.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping 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 firm's quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.72 EPS. As a group, equities research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Analysts Set New Price Targets

NFLX has been the subject of several research analyst reports. Wells Fargo & Company set a $80.00 price target on shares of Netflix and gave the company an "equal weight" rating in a research note on Friday, July 17th. New Street Research raised their price objective on Netflix from $96.00 to $102.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. Rosenblatt Securities set a $75.00 target price on Netflix and gave the company a "neutral" rating in a research report on Friday, July 17th. Itau BBA Securities lowered their target price on Netflix from $151.40 to $96.00 and set an "outperform" rating for the company in a report on Wednesday, August 5th. Finally, HSBC lowered their target price on Netflix from $104.00 to $96.00 and set a "buy" rating for the company in a report on Friday, July 17th. Four 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $96.65.

Insiders Place Their Bets

In related news, insider David A. Hyman sold 5,723 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 213,595 shares of company stock worth $15,812,072. Insiders own 1.24% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly sold its Alphabet position and purchased approximately 13.1 million Netflix shares in the second quarter, signaling confidence in Netflix’s long-term growth and cash-generation potential. Bill Ackman Dumps Alphabet for Netflix
• Positive Sentiment: Analyst and market commentary points to a possible recovery driven by upcoming content releases, a reported Wolfe Research price target of $95, and a median target of $115 from analysts tracked by Quiver Quantitative. Netflix Recovery and Partnerships
• Positive Sentiment: Netflix’s latest U.K. price increases, including a rise in the ad-supported plan from £5.99 to £7.99 per month, could lift average revenue per member. Historical price increases have reportedly been followed by continued annual revenue growth. Netflix U.K. Price Increase
• Neutral Sentiment: Shares have declined roughly 38% to 40% over the past year, making the valuation more appealing to some investors, but debate remains whether the lower price reflects a buying opportunity or slowing growth. Netflix Stock Price Outlook
• Neutral Sentiment: Netflix’s lack of a dividend makes it less attractive to income investors, although bullish analysts argue that reinvesting cash into content and growth offers better long-term potential. Why Own Netflix Without a Dividend
• Negative Sentiment: The main near-term catalyst weighing on NFLX is the reported Q2 revenue miss and weak Q3 outlook, which raised concerns about slowing subscriber and advertising momentum. Netflix Stock Drops
• Negative Sentiment: Quiver Quantitative reports that Netflix insiders made 24 open-market sales and no purchases during the past six months, a potential confidence signal investors may monitor. Netflix Insider Trading Activity

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.

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