Netflix, Inc. $NFLX Holdings Boosted by Rakuten Investment Management Inc.

Rakuten Investment Management Inc. grew its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 15.7% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,014,525 shares of the Internet television network's stock after purchasing an additional 137,713 shares during the quarter. Netflix makes up 0.2% of Rakuten Investment Management Inc.'s portfolio, making the stock its 27th largest holding. Rakuten Investment Management Inc.'s holdings in Netflix were worth $74,852,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also made changes to their positions in the company. BlackRock Inc. bought a new position in Netflix during the 2nd quarter worth $24,902,221,000. State Street Corp boosted its holdings in shares of Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC grew its position in shares of Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors increased its holdings in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Finally, Morgan Stanley increased its holdings in shares of Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock worth $8,002,414,000 after acquiring an additional 76,840,318 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly added approximately 13.1 million Netflix shares, making NFLX one of the hedge fund’s new concentrated holdings. The move may bolster investor confidence in Netflix’s valuation and long-term earnings potential. Bill Ackman portfolio overhaul article
• Positive Sentiment: Analysts and market commentators point to Netflix’s rapidly expanding advertising business, a potential $3 billion advertising revenue opportunity, continued global expansion and margin growth as catalysts for a possible recovery toward $100 and beyond. Record share buybacks could further support earnings per share. Netflix stock price prediction article
• Positive Sentiment: Netflix is being described as an undervalued long-term holding, with bullish arguments centered on double-digit revenue growth, free-cash-flow generation and the ability to monetize live events and lower-priced ad-supported plans. Netflix five-year outlook article
• Neutral Sentiment: The Netflix preview of Grand Theft Auto VI attracted significant online attention and traffic, but the immediate stock-market beneficiary appears to be Take-Two Interactive, the game’s publisher, rather than Netflix. GTA 6 Netflix preview article
• Negative Sentiment: Some analysts argue that Netflix’s growth is moderating and that Alphabet offers stronger diversification, advertising exposure and valuation. Recent commentary also identifies resistance near $82 and muted enthusiasm following the latest earnings report. NFLX versus GOOGL article
• Negative Sentiment: Reported insider activity remains a potential overhang: executives and directors made numerous sales and no purchases over the past six months. Investors may interpret the selling as reduced insider conviction, although it may also reflect routine diversification. Netflix ad monetization and market resistance article

Wall Street Analyst Weigh In

NFLX has been the topic of several recent research reports. Stephens started coverage on shares of Netflix in a research report on Friday, July 17th. They issued an "overweight" rating on the stock. UBS Group decreased their target price on shares of Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a research report on Friday, July 17th. KeyCorp restated an "overweight" rating and issued a $92.00 price target (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Piper Sandler reiterated an "overweight" rating and set a $85.00 price objective (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Finally, Bank of America reiterated a "buy" rating and set a $125.00 price objective on shares of Netflix in a research report on Monday, May 18th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $103.19.

Insider Activity at Netflix

In related news, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $5,592,316.73. The trade was a 11.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider David A. Hyman sold 5,723 shares of the business's 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 sale, the insider directly owned 316,100 shares in the company, valued at $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is owned by corporate insiders.

Netflix Stock Up 2.4%

NASDAQ NFLX opened at $81.72 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The company's 50 day simple moving average is $74.65 and its 200 day simple moving average is $84.33. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a market capitalization of $340.28 billion, a P/E ratio of 25.72, a PEG ratio of 1.00 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the firm posted $0.72 earnings per share. Equities research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Netflix 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.

Want to see what other hedge funds are holding NFLX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Netflix, Inc. (NASDAQ:NFLX - Free Report).

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