Magellan Asset Management Ltd Makes New Investment in Netflix, Inc. $NFLX

Magellan Asset Management Ltd acquired a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 931,061 shares of the Internet television network's stock, valued at approximately $66,478,000. Netflix comprises about 1.5% of Magellan Asset Management Ltd's investment portfolio, making the stock its 20th biggest holding.

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

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to grow faster than many streaming rivals, and its lower valuation after the selloff could provide significant upside if revenue, advertising and engagement trends remain strong. A valuation model described the current setup as potentially asymmetric in investors’ favor. Netflix Is Down 40% From Its All-Time High Could Netflix Stock Double From Here?
• Positive Sentiment: JPMorgan analyst Doug Anmuth maintained an Overweight rating and an $85 price target, citing Netflix’s content pipeline and multiple initiatives to support engagement and revenue growth. The view suggests potential upside from current levels, although the analyst sees no single catalyst guaranteeing acceleration. Netflix Has No Single Silver Bullet
• Positive Sentiment: Netflix’s advertising-supported tier and broad content offering could make the company relatively resilient during a recession, as consumers may retain lower-cost entertainment subscriptions even amid economic pressure. Which Streaming Stock Would Hold Up Better in a Recession?
• Neutral Sentiment: Representatives for Meghan of Sussex reportedly held exploratory discussions about a possible role in a third season of The Gentlemen. Netflix has not ordered the season, so the potential casting has no immediate financial impact. Meghan of Sussex Eyes Role in Netflix Show The Gentlemen
• Negative Sentiment: With Netflix no longer emphasizing subscriber numbers, investors must rely more heavily on revenue growth, advertising performance, engagement and profitability metrics. That makes it harder to assess momentum and contributes to debate over whether the stock’s decline reflects a bargain or slowing growth. Netflix Is Down 40% From Its All-Time High
• Negative Sentiment: YouTube is reportedly offering creators substantial payments and warning that simultaneous Netflix deals could jeopardize marketing support and brand-campaign revenue. This could intensify competition for exclusive content and creator attention. YouTube Offers Creators Millions to Avoid Netflix Deals

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on NFLX shares. Piper Sandler restated an "overweight" rating and issued a $85.00 target price (down from $115.00) on shares of Netflix in a research note on Friday, July 17th. Phillip Securities upgraded shares of Netflix from a "moderate buy" rating to a "strong-buy" rating in a research report on Sunday, July 19th. Citic Securities increased their target price on Netflix from $95.00 to $107.00 and gave the company a "hold" rating in a research note on Monday, April 27th. Wells Fargo & Company set a $80.00 price objective on Netflix and gave the stock an "equal weight" rating in a report on Friday, July 17th. Finally, UBS Group dropped their target price on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $103.48.

Insiders Place Their Bets

In related news, CFO Spencer Adam Neumann sold 9,248 shares of the business's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard N. Barton sold 2,160 shares of Netflix stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the sale, the director directly owned 246 shares in the company, valued at approximately $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 over the last quarter. 1.24% of the stock is owned by company insiders.

Netflix Price Performance

NFLX stock opened at $79.59 on Monday. The stock has a market capitalization of $331.41 billion, a price-to-earnings ratio of 25.05, a PEG ratio of 1.00 and a beta of 1.52. The firm's 50-day moving average price is $74.39 and its two-hundred day moving average price is $84.35. 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.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the company posted $0.72 EPS. Netflix's quarterly revenue was up 13.4% compared to the same quarter last year. As a group, equities analysts predict that Netflix, Inc. will post 3.59 earnings per share 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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