Engineers Gate Manager LP Increases Holdings in Netflix, Inc. $NFLX

Key Points

• Engineers Gate Manager LP increased its Netflix stake by 954% in the second quarter, acquiring 61,114 additional shares for a total holding of 67,520 shares valued at approximately $4.82 million. Institutional investors collectively own 80.93% of Netflix.
• Analysts maintain a generally positive outlook, with Netflix carrying a consensus “Moderate Buy” rating and an average price target of $96.65, despite several firms recently lowering their targets or issuing more cautious ratings.
• Netflix reported 13.4% year-over-year revenue growth and earnings slightly above estimates, while potential growth drivers include its advertising tier and theatrical releases. Risks include insider selling, a Florida lawsuit over children’s data and advertising, and concerns about slowing demand momentum.

Engineers Gate Manager LP grew its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 954.0% in the second quarter, according to its most recent filing with the SEC. The firm owned 67,520 shares of the Internet television network's stock after acquiring an additional 61,114 shares during the quarter. Engineers Gate Manager LP's holdings in Netflix were worth $4,821,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of NFLX. Brighton Jones LLC boosted its holdings in Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after purchasing an additional 257 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock worth $912,000 after purchasing an additional 144 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of Netflix by 21.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after purchasing an additional 246 shares during the period. Strategic Investment Advisors MI raised its position in shares of Netflix by 18.9% in the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after acquiring an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. lifted its holdings in Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock worth $2,832,000 after acquiring an additional 228 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is benefiting from strong digital viewing and higher content consumption, supporting the broader outlook for broadcast, television and streaming companies. Broadcast and TV industry outlook
• Positive Sentiment: The company plans longer theatrical releases for six upcoming films and will report their box-office revenue, potentially creating an additional monetization channel and improving the economics of its film business. Netflix theatrical release strategy
• Positive Sentiment: Analysts continue to highlight Netflix’s advertising-tier potential, with one forecast calling for advertising revenue to surpass $6 billion in 2027. This would support growth beyond subscriptions if execution meets expectations.
• Neutral Sentiment: Options-market activity has attracted attention, but the available report does not identify a clear bullish or bearish positioning signal. Netflix options activity
• Neutral Sentiment: Director Richard Barton sold 720 shares worth about $54,194 under a pre-arranged Rule 10b5-1 plan. The relatively small, scheduled transaction offers limited insight into management’s current outlook. Netflix director stock sale
• Neutral Sentiment: Reported short-interest data showed zero shares and a zero-day short ratio, an apparently inconsistent figure that provides no meaningful trading signal.
• Negative Sentiment: Florida sued Netflix for billions, alleging that it misled families and tracked children’s data for advertising. The case could create legal costs, reputational damage and uncertainty around the economics of the company’s fastest-growing advertising business. Florida lawsuit over Netflix children’s data
• Negative Sentiment: Recent commentary raised concerns about a weak second-quarter outlook and slowing demand momentum compared with some major media competitors. Netflix outlook concerns
• Negative Sentiment: A poll found that most Canadians support requiring streaming services to fund local content, signaling possible additional production obligations and regulatory costs for Netflix in Canada. Canadian streaming regulation

Analyst Upgrades and Downgrades

Several research firms recently issued reports on NFLX. Loop Capital dropped their target price on Netflix from $115.00 to $95.00 and set a "buy" rating on the stock in a report on Friday, July 24th. HSBC dropped their price objective on shares of Netflix from $104.00 to $96.00 and set a "buy" rating for the company in a research note on Friday, July 17th. KGI Securities downgraded shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price objective for the company. in a research report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $110.00 price target on shares of Netflix in a report on Monday, July 20th. Finally, Stephens assumed coverage on Netflix in a report on Friday, July 17th. They set an "overweight" rating on the stock. Four analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and an average target price of $96.65.

Netflix Price Performance

NFLX opened at $77.40 on Friday. The stock has a 50-day moving average price of $75.71 and a 200-day moving average price of $84.38. 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 $124.86. The stock has a market capitalization of $322.29 billion, a P/E ratio of 24.36, a PEG ratio of 1.09 and a beta of 1.53.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data 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 return on equity of 40.02% and a net margin of 28.22%.The firm had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter in the previous year, the business earned $0.72 earnings per share. The company's quarterly revenue was up 13.4% on a year-over-year basis. Equities analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Theodore A. Sarandos sold 105,850 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares in the company, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 Bradford L. Smith sold 35,990 shares of Netflix stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the transaction, the director owned 79,690 shares of the company's stock, valued at $6,177,568.80. The trade was a 31.11% 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. In the last ninety days, insiders sold 215,035 shares of company stock worth $15,922,139. Company insiders own 1.24% of the company's stock.

Netflix 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.

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