Mitsubishi UFJ Asset Management Co. Ltd. Makes New Investment in Netflix, Inc. $NFLX

Key Points

• Mitsubishi UFJ Asset Management acquired 20.75 million Netflix shares worth approximately $1.48 billion, making Netflix its 19th-largest holding and representing about 0.5% of the company.
• Netflix reported 13.4% year-over-year revenue growth to $12.56 billion and slightly exceeded quarterly EPS estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $103.48.
• Netflix shares were trading near $78.16, well below their 12-month high of $126.71. Investor sentiment is mixed as institutional buying and strong fundamentals contrast with insider selling and the closure of two gaming studios.

Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 20,746,540 shares of the Internet television network's stock, valued at approximately $1,481,303,000. Netflix accounts for approximately 0.8% of Mitsubishi UFJ Asset Management Co. Ltd.'s holdings, making the stock its 19th largest holding. Mitsubishi UFJ Asset Management Co. Ltd. owned about 0.50% of Netflix at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the business. Turning Point Benefit Group Inc. raised 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 valued at $25,000 after acquiring an additional 268 shares during the period. Imprint Wealth LLC bought a new position in shares of Netflix in the third quarter valued at about $25,000. Cornerstone Financial Management LLC bought a new position in shares of Netflix in the fourth quarter valued at about $26,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Netflix during the 4th quarter worth about $26,000. Finally, Jessup Wealth Management Inc acquired a new stake in shares of Netflix during the 4th quarter worth about $27,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently commented on NFLX shares. Rosenblatt Securities set a $75.00 price target on shares of Netflix and gave the company a "neutral" rating in a research note on Friday, July 17th. Raymond James Financial restated a "market perform" rating on shares of Netflix in a research report on Thursday, May 14th. UBS Group reduced their price objective on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a report on Friday, July 17th. Morgan Stanley reaffirmed an "overweight" rating and issued a $90.00 target price (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. Finally, Pivotal Research lowered their target price on Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a research note on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and an average price target of $103.48.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square disclosed a new Netflix position of approximately 3.15 million shares, representing about 4.9% of the fund’s portfolio. Ackman said Netflix has effectively “won the streaming wars,” renewing investor interest after the stock’s major sell-off. Reuters article
• Positive Sentiment: Analysts and investing commentators point to Netflix’s resilient fundamentals: second-quarter revenue rose 13.4% year over year to $12.6 billion, earnings per share slightly exceeded estimates, and profitability remained strong. The advertising business, expanding margins and a valuation viewed as reasonable relative to growth are supporting the bullish case. Zacks article
• Positive Sentiment: Netflix’s continued push into live sports—including an MLB “Field of Dreams” game—and the extension of its Seinfeld agreement could strengthen engagement, advertising opportunities and content retention. MLB live sports article
• Neutral Sentiment: Institutional positioning is mixed: some large investors added shares while others reduced holdings. Analysts’ reported price targets remain above the current market level, but investors still must weigh valuation and slowing growth expectations.
• Negative Sentiment: Netflix closed its Hollywood-based Night School gaming studio and plans to close Helsinki-based Moonloot. The closures may improve focus and reduce costs, but they also raise questions about the company’s gaming strategy and ability to expand beyond streaming. Los Angeles Times article
• Negative Sentiment: Reported insider trading shows 30 Netflix open-market sales and no purchases over the past six months. While such sales may reflect compensation or diversification, the one-sided pattern can weigh on sentiment and contrasts with Ackman’s new bullish position. Quiver Quantitative article

Insiders Place Their Bets

In other Netflix news, insider David A. Hyman sold 5,723 shares of Netflix stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the transaction, the insider directly owned 316,100 shares of the company's stock, valued at $23,027,885. The trade was a 1.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company's stock, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 600,295 shares of company stock valued at $49,056,671 in the last quarter. Company insiders own 1.24% of the company's stock.

Netflix Price Performance

Shares of Netflix stock opened at $78.16 on Monday. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a 50-day simple moving average of $74.67 and a two-hundred day simple moving average of $84.53. The stock has a market capitalization of $325.45 billion, a price-to-earnings ratio of 24.60, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the business posted $0.72 EPS. The business's revenue was up 13.4% compared to the same quarter last year. Analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

About Netflix

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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