Primecap Management Co. CA Acquires Shares of 4,790,465 Netflix, Inc. $NFLX

Key Points

• Primecap Management acquired 4.79 million Netflix shares worth approximately $342 million, giving it a 0.12% stake as of the second quarter. Institutional investors collectively own 80.93% of Netflix.
• Netflix shares traded up 2.8% at $82.23, while the company’s latest quarterly results showed $0.80 in earnings per share and 13.4% year-over-year revenue growth.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $103.19, although company insiders have sold more than $49 million of stock over the past 90 days.

Primecap Management Co. CA acquired a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 4,790,465 shares of the Internet television network's stock, valued at approximately $342,039,000. Primecap Management Co. CA owned approximately 0.12% of Netflix at the end of the most recent reporting period.

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

Netflix Trading Up 2.8%

Shares of Netflix stock opened at $82.23 on Wednesday. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The company has a market cap of $342.40 billion, a price-to-earnings ratio of 25.88, a PEG ratio of 1.00 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The company's 50-day moving average price is $74.42 and its 200-day moving average price is $84.36.

Netflix (NASDAQ:NFLX - Get Free Report) last released its 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 for the quarter, compared to analysts' expectations of $12.58 billion. During the same quarter in the prior year, the firm earned $0.72 earnings per share. The firm's revenue was up 13.4% on a year-over-year basis. On average, equities analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is reportedly exploring the ability to sell subscriptions to rival services such as Peacock and Fox One. Becoming a broader streaming-subscription hub could increase customer convenience, generate additional fees and strengthen Netflix’s position as a central entertainment platform. Netflix Stock Rises on Report It May Sell Subscriptions to Rival Streaming Services
• Positive Sentiment: Netflix’s growing NFL partnership and possible access to other streaming services could give viewers more reasons to remain within its app, supporting engagement and the company’s advertising business. Netflix Stock: NFL Growth and Rival Streaming Access Could Grow Its Ad Business
• Positive Sentiment: Investors are also focused on Netflix’s low-priced ad-supported tier, sports strategy and international expansion. Pershing Square’s increased stake has provided an additional vote of confidence in the company’s diversification and monetization plans. How Investors May Respond To Netflix Ad Tier, Sports Push, and Pershing Square’s Bigger Bet
• Neutral Sentiment: Reported short interest was listed at zero shares, making the data unreliable and offering little meaningful indication of short-covering activity.
• Neutral Sentiment: Netflix generated approximately $2.8 billion in 2025 UK revenue, surpassing ITV for the first time and highlighting its international scale. Netflix Posts $2.8B Revenues In UK To Overtake ITV For First Time
• Negative Sentiment: YouTube’s efforts to lock up prominent creators could trigger a bidding war for content, increasing Netflix’s programming costs and pressuring margins. YouTube Could Spark a Creator Bidding War That Hurts Netflix Stock
• Negative Sentiment: A leadership change in Netflix’s advertising division creates some execution uncertainty as the company works to scale its ad business. Netflix parts ways with a key ad executive

Insider Buying and Selling at Netflix

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the company's 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 in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider David A. Hyman sold 5,723 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last ninety days. 1.24% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on NFLX. Rosenblatt Securities set a $75.00 price target on Netflix and gave the stock a "neutral" rating in a 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 report on Friday, July 17th. Citigroup reaffirmed a "market perform" rating on shares of Netflix in a research report on Monday, August 17th. BMO Capital Markets reaffirmed an "outperform" rating on shares of Netflix in a research report on Friday, August 14th. Finally, TD Cowen cut their target price on Netflix from $112.00 to $100.00 and set a "buy" rating on the stock in a 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 issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $103.19.

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.

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