Pallas Capital Advisors LLC Buys New Position in Netflix, Inc. $NFLX

Pallas Capital Advisors LLC bought a new stake in shares of Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 68,824 shares of the Internet television network’s stock, valued at approximately $4,914,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in NFLX. Turning Point Benefit Group Inc. boosted its holdings in shares of Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 268 shares in the last quarter. Imprint Wealth LLC bought a new stake in Netflix during the third quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in Netflix in the fourth quarter worth approximately $26,000. Atlas Capital Advisors Inc. acquired a new stake in Netflix in the fourth quarter worth approximately $26,000. Finally, Jessup Wealth Management Inc bought a new position in Netflix during the 4th quarter valued at $27,000. 80.93% of the stock is currently owned by institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman returned to Netflix: Pershing Square disclosed a 3.15 million-share position, representing approximately 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and believes its valuation and earnings-growth potential support significant long-term upside. The purchase is notable because he previously sold Netflix at a loss of more than $400 million in 2022. Billionaire Bill Ackman Just Invested in Netflix Stock. Here’s Why Investors Should Care.
• Positive Sentiment: Valuation and shareholder returns may support the stock: Several analyses argue that NFLX trades at a lower forward earnings multiple than it historically commanded. They also point to expanding margins, share buybacks and earnings growth running ahead of revenue growth as potential drivers of per-share value. Historical drawdowns are cited as evidence that the current decline could create a contrarian buying opportunity. Netflix Stock Is Cheap and It Has More Than 70% Upside Potential Here
• Neutral Sentiment: Analyst and media support is mixed: Jim Cramer advised a caller to average down, while other coverage frames the stock’s decline as a choice between a generational buying opportunity and a value trap. Investors are looking for evidence that Netflix can sustain growth rather than relying primarily on cost controls and buybacks.
• Negative Sentiment: Growth concerns outweighed Ackman’s purchase: Revenue growth is cooling, and market participants remain concerned that third-quarter revenue and earnings guidance may disappoint. Netflix’s recent quarterly revenue modestly missed estimates despite an EPS beat, reinforcing worries that the business is not expanding as quickly as its valuation previously implied. Why Is Netflix Stock Falling on Monday?
• Negative Sentiment: Additional overhangs include insider selling and a content disclaimer: Netflix’s CFO sold nearly $5.6 million of stock, while a new disclaimer involving The Last House created an avoidable reputational and content-related distraction.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Moffett Nathanson lowered their price target on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a research report on Wednesday, June 17th. Citic Securities raised their target price on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research note on Monday, April 27th. BMO Capital Markets reiterated an “outperform” rating on shares of Netflix in a research report on Friday. KGI Securities cut shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target on the stock. in a research report on Friday, July 17th. Finally, Bank of America reissued a “buy” rating and issued a $125.00 price target on shares of Netflix in a 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 assigned a Sell rating to the stock. According to data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $103.48.

Insider Transactions at Netflix

In related news, Director Richard N. Barton sold 2,160 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the sale, the director directly owned 246 shares of the company’s stock, valued at approximately $18,474.60. This represents a 89.78% decrease in their position. The sale was disclosed in a legal 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. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the transaction, the chief executive officer owned 178,954 shares in the company, valued at $13,126,275.90. This represents a 13.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last 90 days, insiders sold 600,295 shares of company stock worth $49,056,671. 1.24% of the stock is currently owned by company insiders.

Netflix Stock Performance

Netflix stock opened at $76.02 on Tuesday. The firm’s 50 day simple moving average is $74.53 and its 200-day simple moving average is $84.46. The company has a market cap of $316.54 billion, a P/E ratio of 23.93, a price-to-earnings-growth ratio of 0.98 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The business 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 was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.72 earnings per share. As a group, equities research analysts predict that Netflix, Inc. will post 3.59 EPS 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.