VELA Investment Management LLC Raises Stake in Netflix, Inc. $NFLX

by · The Cerbat Gem

VELA Investment Management LLC increased its position in Netflix, Inc. (NASDAQ:NFLX – Free Report) by 240.2% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 19,543 shares of the Internet television network’s stock after buying an additional 13,798 shares during the period. VELA Investment Management LLC’s holdings in Netflix were worth $1,395,000 as of its most recent SEC filing.

A number of other hedge funds have also recently bought and sold shares of NFLX. California State Teachers Retirement System lifted its stake in shares of Netflix by 7,028.2% during the 2nd quarter. California State Teachers Retirement System now owns 458,934,710 shares of the Internet television network’s stock worth $32,767,938,000 after purchasing an additional 452,496,424 shares during the period. BlackRock Inc. purchased a new stake in shares of Netflix in the second quarter valued at $24,902,221,000. State Street Corp grew its position in shares of Netflix by 927.6% in the fourth 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 increased its stake in Netflix by 892.0% in the fourth 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 last quarter. Finally, Capital World Investors lifted its position in Netflix by 859.1% during the fourth 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 period. Institutional investors and hedge funds own 80.93% of the company’s stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

  • Positive Sentiment: Bill Ackman’s Pershing Square reportedly sold its Alphabet position and purchased approximately 13.1 million Netflix shares in the second quarter, signaling confidence in Netflix’s long-term growth and cash-generation potential. Bill Ackman Dumps Alphabet for Netflix
  • Positive Sentiment: Analyst and market commentary points to a possible recovery driven by upcoming content releases, a reported Wolfe Research price target of $95, and a median target of $115 from analysts tracked by Quiver Quantitative. Netflix Recovery and Partnerships
  • Positive Sentiment: Netflix’s latest U.K. price increases, including a rise in the ad-supported plan from £5.99 to £7.99 per month, could lift average revenue per member. Historical price increases have reportedly been followed by continued annual revenue growth. Netflix U.K. Price Increase
  • Neutral Sentiment: Shares have declined roughly 38% to 40% over the past year, making the valuation more appealing to some investors, but debate remains whether the lower price reflects a buying opportunity or slowing growth. Netflix Stock Price Outlook
  • Neutral Sentiment: Netflix’s lack of a dividend makes it less attractive to income investors, although bullish analysts argue that reinvesting cash into content and growth offers better long-term potential. Why Own Netflix Without a Dividend
  • Negative Sentiment: The main near-term catalyst weighing on NFLX is the reported Q2 revenue miss and weak Q3 outlook, which raised concerns about slowing subscriber and advertising momentum. Netflix Stock Drops
  • Negative Sentiment: Quiver Quantitative reports that Netflix insiders made 24 open-market sales and no purchases during the past six months, a potential confidence signal investors may monitor. Netflix Insider Trading Activity

Netflix Stock Performance

Netflix stock opened at $78.25 on Tuesday. The stock’s 50-day moving average is $75.61 and its 200-day moving average is $84.46. The company has a market cap of $325.83 billion, a price-to-earnings ratio of 24.63, a price-to-earnings-growth ratio of 1.10 and a beta of 1.53. 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 12 month low of $65.08 and a 12 month high of $126.71.

Netflix (NASDAQ:NFLX – Get Free Report) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company’s revenue for the quarter was up 13.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.72 EPS. Equities analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Activity

In other Netflix news, CFO Spencer Neumann sold 9,248 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Bradford Smith sold 35,990 shares of the stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the sale, the director directly owned 79,690 shares of the company’s stock, valued at $6,177,568.80. The trade was a 31.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 213,595 shares of company stock valued at $15,812,072 over the last quarter. 1.24% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of analysts have issued reports on NFLX shares. Seaport Research Partners lowered Netflix from a “buy” rating to a “neutral” rating in a research note on Monday, July 20th. China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a report on Tuesday, July 21st. Itau BBA Securities decreased their target price on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 5th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. Finally, Guggenheim set a $75.00 target price on shares of Netflix and gave the company a “buy” rating in a report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $96.65.

Check Out Our Latest Analysis on NFLX

About Netflix

(Free Report)

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.

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