SCS Capital Management LLC Takes Position in Netflix, Inc. $NFLX

SCS Capital Management LLC bought a new position in shares of Netflix, Inc. (NASDAQ:NFLX) during the 2nd quarter, Holdings Channel reports. The fund bought 16,206 shares of the Internet television network’s stock, valued at approximately $1,157,000.

Other large investors have also made changes to their positions in the company. Pacific Sun Financial Corp boosted its holdings in Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock worth $688,000 after buying an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC increased its holdings in Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after buying an additional 10 shares in the last quarter. Monograph Wealth Advisors LLC increased its holdings in Netflix by 1.8% in the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock valued at $913,000 after buying an additional 12 shares in the last quarter. Resources Management Corp CT ADV lifted its position in shares of Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock valued at $1,110,000 after acquiring an additional 16 shares during the period. Finally, Sompo Asset Management Co. Ltd. lifted its position in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock valued at $2,009,000 after acquiring an additional 20 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts have recently commented on NFLX shares. Pivotal Research decreased their price target on Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research note on Friday, July 17th. Wedbush dropped their price objective on Netflix from $118.00 to $105.00 and set an “outperform” rating for the company in a research note on Friday, July 17th. Phillip Securities raised Netflix from a “moderate buy” rating to a “strong-buy” rating in a report on Sunday, July 19th. The Goldman Sachs Group downgraded Netflix from an “underweight” rating to a “sell” rating in a research report on Monday, July 20th. Finally, Moffett Nathanson lowered their target price on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, June 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $103.48.

Netflix Price Performance

NFLX stock opened at $78.16 on Monday. The company’s 50 day simple moving average is $74.67 and its 200-day simple moving average is $84.53. The firm has a market capitalization of $325.45 billion, a PE ratio of 24.60, a P/E/G ratio of 0.98 and a beta of 1.52. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. 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 (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $12.58 billion. During the same period last year, the company posted $0.72 EPS. The company’s revenue was up 13.4% on a year-over-year basis. Equities analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Netflix News Roundup

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

Insider Activity at Netflix

In other news, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value 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 represents a 31.11% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 105,850 shares of the stock in a transaction 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. The trade was a 33.91% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 600,295 shares of company stock valued at $49,056,671 in the last ninety days. 1.24% of the stock is owned by insiders.

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.