SCS Capital Management LLC Buys New Stake in Netflix, Inc. $NFLX

SCS Capital Management LLC purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 16,206 shares of the Internet television network’s stock, valued at approximately $1,157,000.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of 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 purchasing an additional 351,493,659 shares in the last quarter. State Street Corp boosted its position in shares of Netflix by 927.6% in 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 during the period. Geode Capital Management LLC boosted its position in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $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 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley grew its stake in Netflix by 903.0% during the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after buying an additional 76,840,318 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on NFLX. Citic Securities boosted their price objective on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research note on Monday, April 27th. Pivotal Research lowered their target price on shares of Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Netflix in a report on Monday, July 20th. Rosenblatt Securities set a $75.00 price target on shares of Netflix and gave the company a “neutral” rating in a research report on Friday, July 17th. Finally, KeyCorp reiterated an “overweight” rating and set a $92.00 price target (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Netflix currently has an average rating of “Moderate Buy” and an average target price of $103.48.

Insider Transactions at Netflix

In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 386,700 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director owned 3,940 shares of the company’s stock, valued at approximately $338,721.80. The trade was a 98.99% 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. Insiders sold a total of 600,295 shares of company stock worth $49,056,671 over the last quarter. 1.24% of the stock is currently owned by corporate insiders.

Netflix News Summary

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

Netflix Stock Performance

Shares of NFLX stock opened at $78.16 on Monday. The company has a market capitalization of $325.45 billion, a P/E ratio of 24.60, a price-to-earnings-growth ratio of 0.98 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 business’s 50 day moving average is $74.67 and its two-hundred day moving average is $84.53. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter in the prior year, the business earned $0.72 earnings per share. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. Equities analysts forecast 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.