William Blair Investment Management LLC Buys New Stake in Netflix, Inc. $NFLX

William Blair Investment Management LLC purchased a new stake in Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 44,309 shares of the Internet television network’s stock, valued at approximately $3,164,000.

Several other hedge funds also recently added to or reduced their stakes in the business. Vanguard Group Inc. raised 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 acquiring an additional 351,493,659 shares during the period. Shepherd Street Advisors LLC acquired a new stake in shares of Netflix in the fourth quarter valued at about $2,216,000. Morse Asset Management Inc grew its position in shares of Netflix by 809.3% in the fourth quarter. Morse Asset Management Inc now owns 64,730 shares of the Internet television network’s stock valued at $6,069,000 after purchasing an additional 57,611 shares during the period. University of Texas Texas AM Investment Management Co. increased its stake in shares of Netflix by 798.5% during the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock worth $3,989,000 after purchasing an additional 37,807 shares in the last quarter. Finally, New Mexico Educational Retirement Board increased its stake in shares of Netflix by 900.0% during the fourth quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network’s stock worth $18,022,000 after purchasing an additional 172,989 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Price Performance

Netflix stock opened at $79.59 on Monday. 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 has a 50-day moving average price of $74.39 and a 200 day moving average price of $84.35. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71. The stock has a market cap of $331.41 billion, a P/E ratio of 25.05, a PEG ratio of 1.00 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results 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. The firm 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 business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.72 EPS. Sell-side analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Analysts Set New Price Targets

NFLX has been the topic of a number of research 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 research note on Monday, April 27th. Guggenheim set a $75.00 price objective on Netflix and gave the company a “buy” rating in a report on Friday, July 17th. The Goldman Sachs Group cut shares of Netflix from an “underweight” rating to a “sell” rating in a research note on Monday, July 20th. Barclays dropped their target price on shares of Netflix from $85.00 to $80.00 and set an “equal weight” rating for the company in a report on Friday, July 17th. Finally, BMO Capital Markets reaffirmed an “outperform” rating on shares of Netflix in a research note on Friday, August 14th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $103.48.

Key Headlines Impacting Netflix

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

Insider Buying and Selling

In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 trade represents a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is currently owned by company insiders.

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.