Envestnet Asset Management Inc. Grows Stock Position in Netflix, Inc. $NFLX

Key Points

• Envestnet Asset Management increased its Netflix stake by 0.6% in the second quarter to 5.45 million shares valued at approximately $389.1 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix shares opened at $71.36, near the lower end of their 52-week range, while quarterly earnings slightly exceeded expectations and revenue rose 13.4% year over year.
• Analyst sentiment remains mixed: MarketBeat reports a “Moderate Buy” consensus with a $95.51 target, but recent downgrades cite competition from YouTube, weaker engagement and uncertainty around Netflix’s advertising and live-content strategy.

Envestnet Asset Management Inc. boosted its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 0.6% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 5,449,012 shares of the Internet television network's stock after acquiring an additional 33,933 shares during the period. Envestnet Asset Management Inc. owned 0.13% of Netflix worth $389,057,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in NFLX. BlackRock Inc. acquired a new stake in Netflix during the 2nd quarter valued at $24,902,221,000. State Street Corp grew its holdings in shares of Netflix by 4.9% during the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock worth $12,861,252,000 after buying an additional 8,474,820 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after buying an additional 89,558,684 shares during the last quarter. Capital World Investors raised its position in shares of Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Netflix during the fourth quarter valued at approximately $5,803,248,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts argue that Netflix’s pullback has already priced in much of the negative news, making the valuation more attractive for long-term investors. Supporters also point to potential earnings growth through 2030 and describe the shares as appealing at current levels. The Case for Buying Netflix Stock
• Positive Sentiment: Disney’s higher Disney+ and Hulu prices could improve the relative value of Netflix’s service and support broader streaming-industry pricing power. However, Disney’s premium Disney+ plan is moving closer to Netflix’s pricing, which may also intensify competition. Disney Raises Disney+ and Hulu Streaming Prices
• Neutral Sentiment: Netflix is responding to changing viewer habits by emphasizing live sports, advertising, video podcasts and short-form content. Investors are watching whether these initiatives can increase engagement and create stronger advertising growth. Netflix Stock Slides as YouTube Threat Tests Its Live Sports and Advertising Strategy
• Negative Sentiment: HSBC downgraded NFLX to Hold from Buy and cut its price target to $76 from $96, citing a widening viewing gap with YouTube and weaker near-term engagement. The downgrade follows Wells Fargo’s Underweight rating and $57 target, adding to concerns about a slower recovery. HSBC Resets Netflix Stock Target for 2026
• Negative Sentiment: Analysts and market commentators warn that YouTube is capturing more viewing time, potentially reducing Netflix’s engagement, advertising opportunity and pricing power. The resulting uncertainty is weighing on confidence in Netflix’s growth strategy. Netflix is losing viewing hours to YouTube
• Negative Sentiment: Zacks rates Netflix a Rank #4, or Sell, arguing that the shares may lack near-term stability and that investors have more attractive alternatives. Bearish options activity and sharply divided price targets further indicate elevated downside and volatility risks. Are Netflix Shares Still Worth Watching?

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on NFLX. CICC Research decreased their target price on shares of Netflix from $110.00 to $90.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 21st. President Capital lowered their price target on Netflix from $134.00 to $83.00 and set a "buy" rating for the company in a research report on Monday, July 20th. Evercore restated an "outperform" rating and set a $110.00 price target (up from $100.00) on shares of Netflix in a research note on Monday, September 14th. The Goldman Sachs Group downgraded Netflix from an "underweight" rating to a "sell" rating in a report on Monday, July 20th. Finally, Daiwa Securities Group reduced their price objective on Netflix from $102.00 to $76.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 22nd. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $95.51.

Netflix Stock Down 1.1%

Netflix stock opened at $71.36 on Thursday. The stock has a market cap of $297.14 billion, a price-to-earnings ratio of 22.46, a PEG ratio of 1.02 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. The company's 50-day moving average price is $75.73 and its two-hundred day moving average price is $83.48. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $124.86.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results 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. The firm had revenue of $12.56 billion for 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% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.72 earnings per share. On average, analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Buying and Selling

In related news, 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 completion of the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Gregory Peters sold 27,312 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the sale, the chief executive officer owned 120,931 shares of the company's stock, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is owned by insiders.

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.

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.