E Fund Management Co. Ltd. Buys Shares of 194,883 Netflix, Inc. $NFLX

Key Points

• E Fund Management acquired 194,883 Netflix shares worth approximately $13.9 million during the second quarter, joining other institutional investors in buying the stock. Hedge funds and institutions collectively own 80.93% of Netflix.
• Netflix reported quarterly revenue of $12.56 billion, up 13.4% year over year, and earnings per share of $0.80, narrowly beating analysts’ estimates. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $103.48.
• Investor sentiment is being supported by expectations for advertising-driven growth and renewed confidence from Bill Ackman, though insider selling and a copyright lawsuit involving “KPop Demon Hunters” remain risks.

E Fund Management Co. Ltd. acquired a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 194,883 shares of the Internet television network's stock, valued at approximately $13,915,000.

Several other institutional investors and hedge funds also recently bought and sold shares of the stock. Turning Point Benefit Group Inc. raised its position in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC purchased a new stake in shares of Netflix in the third quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new stake in shares of Netflix during the 4th quarter worth approximately $26,000. Atlas Capital Advisors Inc. purchased a new stake in shares of Netflix during the 4th quarter worth approximately $26,000. Finally, Jessup Wealth Management Inc bought a new position in shares of Netflix during the 4th quarter valued at approximately $27,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returns: Pershing Square disclosed a roughly 4.9% portfolio position in Netflix, reversing its earlier exit at a reported loss of about $400 million. Ackman’s renewed conviction reflects expectations for double-digit revenue growth, margin expansion and continued streaming leadership. What's Going On With Netflix Stock Wednesday?
• Positive Sentiment: Advertising remains a growth catalyst: Analysts highlighted Netflix’s rapidly scaling ad-supported business, including new advertising tools and live programming that could help generate billions in ad revenue and support longer-term revenue expansion. NFLX's Ad Business Focus
• Positive Sentiment: Valuation attracts bargain hunters: With the stock down about 43% from its peak and trading near 21 times forward earnings, investors are comparing Netflix’s valuation with prior major pullbacks and arguing that the risk-reward profile has improved. Several commentators and CNBC’s Jason Snipe also endorsed the shares. Netflix Trades at 21 Times Forward Earnings
• Neutral Sentiment: Broader market rotation helped: Netflix participated in a shift away from semiconductor stocks and toward beaten-down software and technology shares. This suggests part of the move reflected sector positioning rather than a new company-specific operating announcement. Netflix, Salesforce, and Adobe Rally
• Negative Sentiment: Copyright lawsuit adds risk: The band Demon Hunter sued Netflix over the title and alleged intellectual-property issues involving KPop Demon Hunters. The legal action introduces potential costs and reputational risk, although its financial impact is currently unclear. Netflix sued by band Demon Hunter

Netflix Stock Performance

Shares of NFLX stock opened at $80.22 on Thursday. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The firm has a market capitalization of $334.03 billion, a price-to-earnings ratio of 25.25, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The business has a fifty day moving average of $74.43 and a 200 day moving average of $84.39.

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. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the firm posted $0.72 earnings per share. The firm's quarterly revenue was up 13.4% on a year-over-year basis. As a group, research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research firms recently commented on NFLX. Moffett Nathanson dropped their price target on Netflix from $120.00 to $115.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. BMO Capital Markets restated an "outperform" rating on shares of Netflix in a report on Friday, August 14th. CLSA initiated coverage on Netflix in a research note on Monday, July 20th. They issued an "outperform" rating on the stock. TD Cowen reduced their price objective on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, July 17th. Finally, Piper Sandler restated an "overweight" rating and issued a $85.00 price target (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Four 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. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $103.48.

Insider Buying and Selling at Netflix

In other news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction dated 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 owned 206,266 shares in the company, valued at $15,063,605.98. This trade represents a 33.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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, Director Reed Hastings sold 386,700 shares of the company's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director owned 3,940 shares of the company's stock, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their position. 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 quarter, insiders sold 600,295 shares of company stock valued at $49,056,671. 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 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).

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