Prospect Hill Management LLC Makes New Investment in Netflix, Inc. $NFLX

Prospect Hill Management LLC purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 63,514 shares of the Internet television network’s stock, valued at approximately $4,535,000. Netflix accounts for approximately 1.8% of Prospect Hill Management LLC’s investment portfolio, making the stock its 9th biggest position.

A number of other large investors have also made changes to their positions in NFLX. Checchi Capital Advisers LLC lifted its stake in Netflix by 875.7% in the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock valued at $2,920,000 after buying an additional 27,951 shares in the last quarter. Family Capital Trust Co increased its position in Netflix by 20,869.5% during the fourth quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network’s stock worth $2,576,000 after buying an additional 27,339 shares in the last quarter. Vanguard Group Inc. increased 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 worth $36,567,805,000 after buying an additional 351,493,659 shares in the last quarter. Shepherd Street Advisors LLC purchased a new position in Netflix during the fourth quarter worth $2,216,000. Finally, Greystone Financial Group LLC raised its holdings in shares of Netflix by 1,319.6% in the fourth quarter. Greystone Financial Group LLC now owns 10,505 shares of the Internet television network’s stock worth $985,000 after acquiring an additional 9,765 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Insider Transactions at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total value of $2,003,335.20. Following the sale, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at approximately $13,126,275.90. This trade represents a 13.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, insider David A. Hyman sold 5,723 shares of Netflix stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value 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 position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 600,295 shares of company stock worth $49,056,671 in the last quarter. 1.24% of the stock is currently owned by corporate insiders.

More 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

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Raymond James Financial restated a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. Seaport Research Partners cut Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Erste Group Bank downgraded shares of Netflix from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Wedbush reduced their target price on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. Finally, Phillip Securities raised shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $103.48.

Netflix Trading Down 0.1%

Shares of Netflix stock opened at $78.16 on Friday. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71. The business’s fifty day moving average is $74.67 and its two-hundred day moving average is $84.54. 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 firm 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 (NASDAQ:NFLX) last announced its quarterly earnings data 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. The business had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.72 earnings per share. Analysts anticipate that Netflix, Inc. will post 3.59 earnings per share 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.