Weitz Investment Management Inc. Invests $10.51 Million in Netflix, Inc. $NFLX

Key Points

• Weitz Investment Management bought a new 147,200-share Netflix stake valued at approximately $10.51 million during the second quarter.
• Institutional investors own 80.93% of Netflix, with Vanguard, BlackRock, State Street, Geode Capital and Capital World Investors among the largest holders.
• Netflix reported 13.4% year-over-year revenue growth and slightly beat quarterly EPS estimates, while analysts maintain a “Moderate Buy” consensus with an average price target of $103.48; insiders, however, sold about $49.1 million in stock over the past three months.

Weitz Investment Management Inc. bought a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 147,200 shares of the Internet television network's stock, valued at approximately $10,510,000.

A number of other institutional investors and hedge funds have also made changes to their positions in NFLX. Vanguard Group Inc. boosted its position in Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares in the last quarter. BlackRock Inc. purchased a new position in Netflix in the second quarter valued at about $24,902,221,000. State Street Corp raised its holdings in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC raised its holdings in Netflix by 892.0% in 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 in the last quarter. Finally, Capital World Investors lifted its position in shares of Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Netflix news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the sale, the chief executive officer owned 206,266 shares of the company's stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 the business's stock in a transaction dated 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 sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last three months. Corporate insiders own 1.24% of the company's stock.

More Netflix News

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

Netflix Price Performance

Shares of NFLX stock opened at $79.59 on Friday. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The firm 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 stock's 50-day simple moving average is $74.39 and its 200-day simple moving average is $84.34.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $12.58 billion. During the same period last year, the firm posted $0.72 EPS. Netflix's revenue was up 13.4% on a year-over-year basis. As a group, equities analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Analyst Ratings Changes

NFLX has been the topic of a number of recent analyst reports. Citic Securities raised their price target on shares of Netflix from $95.00 to $107.00 and gave the company a "hold" rating in a report on Monday, April 27th. Wedbush reduced their price objective on shares of Netflix from $118.00 to $105.00 and set an "outperform" rating for the company in a research note on Friday, July 17th. CLSA started coverage on shares of Netflix in a research report on Monday, July 20th. They set an "outperform" rating for the company. Jefferies Financial Group lowered their target price on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a research note on Wednesday, June 10th. Finally, KGI Securities lowered shares of Netflix from an "outperform" rating to a "neutral" rating and set a $75.00 price target 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 assigned a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $103.48.

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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