Southpoint Capital Advisors LP Makes New Investment in Netflix, Inc. $NFLX

Southpoint Capital Advisors LP purchased a new position in shares of Netflix, Inc. (NASDAQ:NFLX) in the first quarter, HoldingsChannel reports. The institutional investor purchased 2,000,000 shares of the Internet television network’s stock, valued at approximately $192,300,000. Netflix makes up about 4.0% of Southpoint Capital Advisors LP’s holdings, making the stock its 11th biggest holding.

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

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Options traders remain constructive on Netflix, with call activity indicating that some investors expect the recovery to continue following the stock’s earnings-driven decline. Call Traders Aren’t Giving Up on Netflix Stock
• Positive Sentiment: Trader Mike Khouw said Netflix’s fundamental story remains intact despite the selloff, suggesting the decline could create an attractive setup if the company continues expanding profitability and monetizing advertising. The bullish case is also supported by analysts who view the concerns weighing on the stock as excessive. Netflix woes setting up for a Hollywood ending, says trader Mike Khouw
• Positive Sentiment: Netflix’s expanding margins, free cash flow, and substantial share repurchases provide fundamental support. The company has shifted toward profitable growth rather than maximizing subscribers, while some investors believe the stock’s decline has created better long-term value. Netflix: Record Buybacks, Rising Margins, and a Slate in Need of a Refresh
• Neutral Sentiment: Kalshi sent Netflix a cease-and-desist letter and threatened litigation over the trailer for the documentary Instadocs: The Prediction Games, alleging defamation and fabricated documents. The dispute could create reputational or legal risk, although its direct financial impact is unclear. Kalshi threatens to sue Netflix over prediction markets documentary
• Negative Sentiment: The recent earnings reaction remains a major overhang: Netflix missed revenue expectations and issued weak guidance, sending the stock sharply lower before its recovery. Investors are also questioning whether a share price still more than 40% below its high adequately reflects intensifying competition from Disney, Paramount, YouTube, short-form video, and AI-generated content. Netflix stock overview
• Negative Sentiment: A former Netflix executive sued the company, claiming he was fired after disclosing medically prescribed ketamine treatment. The allegations could add legal and reputational pressure, though they have not been adjudicated. Former Netflix executive lawsuit

Netflix Trading Up 0.4%

Shares of NFLX stock opened at $70.40 on Tuesday. The firm has a fifty day moving average of $77.95 and a 200-day moving average of $85.87. The stock has a market cap of $293.14 billion, a price-to-earnings ratio of 22.16, a P/E/G ratio of 0.88 and a beta of 1.52. Netflix, Inc. has a 52-week low of $65.08 and a 52-week high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating 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 for the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the business earned $0.72 EPS. The firm’s revenue was up 13.4% on a year-over-year basis. On average, equities research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Analyst Ratings Changes

NFLX has been the subject of a number of research analyst reports. Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the company an “outperform” rating in a research report on Friday, July 17th. TD Cowen decreased their target price on Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. Seaport Research Partners lowered Netflix from a “buy” rating to a “neutral” rating in a research note on Monday, July 20th. Citic Securities upped their price target on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a report on Monday, April 27th. Finally, Citizens Jmp reiterated a “market perform” rating on shares of Netflix in a research report on Wednesday, April 15th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Insider Transactions at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the firm’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the transaction, the chief financial officer owned 73,787 shares in the company, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Reed Hastings sold 407,550 shares of Netflix stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $93.13, for a total value of $37,955,131.50. Following the sale, the director directly owned 3,940 shares in the company, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 899,839 shares of company stock valued at $80,141,661. Corporate insiders own 1.24% of the company’s stock.

Netflix 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.