HS Management Partners LLC Decreases Position in Netflix, Inc. $NFLX

Key Points

• HS Management Partners LLC cut its Netflix stake by 15.5% in the first quarter, selling 37,156 shares and leaving it with 203,254 shares valued at about $19.5 million.
• Despite that sale, Netflix remains a major holding for the fund, representing 6.8% of its portfolio and its third-largest position.
• Wall Street remains broadly constructive on Netflix, with a Moderate Buy consensus rating and a $114.26 average price target, even as some analysts have trimmed targets and cited near-term risks.

HS Management Partners LLC decreased its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 15.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 203,254 shares of the Internet television network's stock after selling 37,156 shares during the period. Netflix comprises 6.8% of HS Management Partners LLC's portfolio, making the stock its 3rd biggest position. HS Management Partners LLC's holdings in Netflix were worth $19,543,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. raised its stake in shares of 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 acquiring an additional 351,493,659 shares during the last quarter. State Street Corp grew its position 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 last quarter. Geode Capital Management LLC increased 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 valued at $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors increased its holdings in 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 purchasing an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley raised its position in Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock valued at $8,002,414,000 after purchasing an additional 76,840,318 shares during the last quarter. 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 rallied after reports clarified that a large-scale NBCUniversal acquisition was not an imminent goal, easing takeover-related anxiety and helping investors focus back on fundamentals. Why Netflix (NFLX) Stock Is Up Today
• Positive Sentiment: Analyst commentary and investor coverage highlighted Netflix’s ad growth, pricing power, and improving free cash flow outlook as key drivers that could support the stock into earnings. Netflix Gears Up to Report Q2 Earnings: Buy, Sell or Hold the Stock?
• Positive Sentiment: Netflix’s recent AI advertising partnership with Omnicom Media Group boosted sentiment by reinforcing the company’s monetization strategy for its ad-supported tier. Netflix (NFLX) Is Up 9.5% After AI Ad Tie-Up With Omnicom Media Group - Has The Bull Case Changed?
• Neutral Sentiment: Several articles framed Netflix as a potential value or turnaround idea after a sharp six-month decline, but these were mostly opinion pieces rather than new company-specific catalysts. Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care
• Neutral Sentiment: Coverage from Jim Cramer and other commentators argued the market may be too pessimistic about Netflix’s growth, but this did not reflect a new operating update. Jim Cramer Believes the Market Is Wrong About Netflix
• Negative Sentiment: A TipRanks AI Analyst downgrade and reduced price target added caution, citing growing near-term risks for Netflix (NFLX). AI Analyst Downgrades Netflix Stock, Cuts Price Target as Near-Term Risks Grow
• Negative Sentiment: Broader commentary still notes Netflix’s stock has lagged the market over the past six months, with softer quarterly results contributing to investor disappointment. Netflix (NFLX): 3 Reasons We Love This Stock

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Seaport Research Partners boosted their price objective on Netflix from $115.00 to $119.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Bank of America restated a "buy" rating and issued a $125.00 target price on shares of Netflix in a research note on Monday, May 18th. Citigroup reiterated a "market perform" rating on shares of Netflix in a research report on Thursday, June 18th. JPMorgan Chase & Co. reissued a "buy" rating on shares of Netflix in a report on Wednesday, April 22nd. Finally, Jefferies Financial Group lowered their price objective on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research report on Wednesday, June 10th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Netflix has a consensus rating of "Moderate Buy" and a consensus price target of $114.26.

Insider Buying and Selling

In related news, Director Bradford L. Smith sold 35,990 shares of the business's 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 completion of the sale, the director directly 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 transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at $10,725,370.39. This represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 899,839 shares of company stock worth $80,141,661. 1.24% of the stock is currently owned by company insiders.

Netflix Stock Performance

NFLX stock opened at $77.65 on Friday. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. Netflix, Inc. has a twelve month low of $70.86 and a twelve month high of $130.23. The company has a market cap of $326.97 billion, a P/E ratio of 25.08, a PEG ratio of 0.99 and a beta of 1.52. The business has a fifty day moving average of $83.46 and a 200-day moving average of $88.29.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the business earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities research analysts expect that Netflix, Inc. will post 3.6 EPS for the current year.

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.

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