Pacific Sage Partners LLC Buys New Stake in Netflix, Inc. $NFLX

Key Points

• Pacific Sage Partners initiated a Netflix position in the second quarter, purchasing 14,962 shares valued at approximately $1.07 million. Institutional investors collectively own 80.93% of Netflix.
• Netflix reported 13.4% year-over-year revenue growth to $12.56 billion and slightly exceeded quarterly EPS expectations, while analysts maintain a “Moderate Buy” consensus with a $103.48 average price target.
• Investor sentiment is mixed: Bill Ackman’s Pershing Square disclosed a major new Netflix stake, but insider selling has been substantial and Netflix’s gaming-studio closures raise questions about its expansion beyond streaming.

Pacific Sage Partners LLC purchased a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 14,962 shares of the Internet television network's stock, valued at approximately $1,068,000.

A number of other hedge funds also recently bought and sold shares of NFLX. Pacific Sun Financial Corp grew its stake in shares of Netflix by 1.6% in the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock worth $688,000 after buying an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC raised its position in shares of Netflix by 9.6% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock valued at $137,000 after buying an additional 10 shares in the last quarter. Monograph Wealth Advisors LLC raised its position in shares of Netflix by 1.8% during the 2nd quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock valued at $913,000 after buying an additional 12 shares in the last quarter. Resources Management Corp CT ADV raised its position in shares of Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network's stock valued at $1,110,000 after buying an additional 16 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. lifted its holdings in shares of Netflix by 1.4% in the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network's stock valued at $2,009,000 after acquiring an additional 20 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Netflix News

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

Netflix Price Performance

NFLX stock opened at $78.16 on Friday. The stock has a market cap of $325.45 billion, a PE ratio of 24.60, a P/E/G ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a 50-day moving average price of $74.67 and a 200 day moving average price of $84.54. 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 (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $12.56 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period in the prior year, the company posted $0.72 EPS. Equities research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms recently commented on NFLX. Rosenblatt Securities set a $75.00 price target on Netflix and gave the stock a "neutral" rating in a research report on Friday, July 17th. Piper Sandler restated 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. Pivotal Research lowered their price objective on Netflix from $96.00 to $70.00 and set a "hold" rating for the company in a research note on Friday, July 17th. Sanford C. Bernstein set a $95.00 price objective on Netflix and gave the company an "outperform" rating in a research note on Friday, July 17th. Finally, JPMorgan Chase & Co. dropped their target price on Netflix from $118.00 to $85.00 and set an "overweight" rating for the company in a report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $103.48.

Insider Buying and Selling at Netflix

In other news, Director Bradford L. Smith sold 35,990 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the sale, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. This represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director directly owned 3,940 shares of the company's stock, valued at $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is owned by company insiders.

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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