Mitsubishi UFJ Asset Management Co. Ltd. Invests $1.48 Billion in Netflix, Inc. $NFLX

Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 20,746,540 shares of the Internet television network’s stock, valued at approximately $1,481,303,000. Netflix makes up 0.8% of Mitsubishi UFJ Asset Management Co. Ltd.’s portfolio, making the stock its 19th largest position.

Other hedge funds have also added to or reduced their stakes in the company. Imprint Wealth LLC bought a new stake in Netflix during the third quarter worth $25,000. Wealth Watch Advisors INC bought a new position in shares of Netflix in the 3rd quarter valued at $103,000. Strategic Wealth Investment Group LLC bought a new position in shares of Netflix in the 2nd quarter valued at $121,000. Wiser Advisor Group LLC acquired a new position in shares of Netflix during the 3rd quarter worth $114,000. Finally, Beaird Harris Wealth Management LLC raised its holdings in shares of Netflix by 9.6% during the 3rd quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after buying an additional 10 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

NFLX has been the topic of several research analyst reports. Citic Securities raised 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. Phillip Securities raised Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the stock an “equal weight” rating in a report on Friday, July 17th. Wedbush reduced their price target on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th. Finally, Sanford C. Bernstein set a $95.00 price target on shares of Netflix and gave the company an “outperform” rating in a report on Friday, July 17th. Four equities 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 assigned a Sell rating to the company. Based on data from MarketBeat, Netflix currently has a consensus rating of “Moderate Buy” and an average price target of $103.48.

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. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The stock’s fifty day simple moving average is $74.67 and its 200 day simple moving average is $84.53. 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 capitalization of $325.45 billion, a P/E ratio of 24.60, a P/E/G ratio of 0.98 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last posted its 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. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The firm had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period last year, the company earned $0.72 earnings per share. The business’s quarterly revenue was up 13.4% on a year-over-year basis. As a group, sell-side analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Bradford L. Smith sold 35,990 shares of Netflix stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the sale, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This trade represents a 31.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,248 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer directly 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 over the last three months. Insiders own 1.24% of the company’s stock.

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.