Pallas Capital Advisors LLC Invests $4.91 Million in Netflix, Inc. $NFLX

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

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Checchi Capital Advisers LLC increased its holdings in Netflix by 875.7% during the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock worth $2,920,000 after purchasing an additional 27,951 shares during the last quarter. Family Capital Trust Co grew its position in shares of 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. grew 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 buying an additional 351,493,659 shares in the last quarter. Shepherd Street Advisors LLC bought a new stake in shares of Netflix in the fourth quarter worth $2,216,000. Finally, Greystone Financial Group LLC increased its stake 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 buying an additional 9,765 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Insider Transactions at Netflix

In other Netflix news, Director Reed Hastings sold 386,700 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director owned 3,940 shares in the company, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. This trade represents a 33.91% 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. Insiders have 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.

Wall Street Analysts Forecast Growth

NFLX has been the topic of a number of research analyst reports. Stephens started coverage on shares of Netflix in a research note on Friday, July 17th. They set an “overweight” rating on the stock. KeyCorp restated an “overweight” rating and issued a $92.00 target price (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. 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 report on Friday, July 17th. Citic Securities boosted their price objective on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a report on Monday, April 27th. Finally, China Intl Cap upgraded Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Trending Headlines about 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.

Netflix Price Performance

Shares of NFLX opened at $76.02 on Tuesday. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a market cap of $316.54 billion, a P/E ratio of 23.93, a PEG 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. The stock has a fifty day moving average price of $74.53 and a 200 day moving average price of $84.46.

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 net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the firm earned $0.72 earnings per share. The company’s quarterly revenue was up 13.4% on a year-over-year basis. On average, research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Netflix Company Profile

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.