Parallel Advisors LLC Grows Stake in Netflix, Inc. $NFLX

Parallel Advisors LLC increased its position in Netflix, Inc. (NASDAQ:NFLX) by 3.2% in the 1st quarter, HoldingsChannel.com reports. The fund owned 328,156 shares of the Internet television network’s stock after acquiring an additional 10,290 shares during the quarter. Netflix accounts for about 0.6% of Parallel Advisors LLC’s investment portfolio, making the stock its 29th biggest holding. Parallel Advisors LLC’s holdings in Netflix were worth $31,552,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in shares of Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the period. State Street Corp increased its position in shares of Netflix by 927.6% during the 4th 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 last quarter. Geode Capital Management LLC lifted its stake in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the period. Capital World Investors lifted its stake in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Finally, Morgan Stanley boosted its holdings in shares of Netflix by 903.0% in the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after buying an additional 76,840,318 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s cloud-gaming initiative is showing strong early traction: monthly players have increased 11-fold since October, potentially creating a new engagement and growth engine beyond traditional streaming and mobile games. Can NFLX Stock Compound Its Way Higher?
• Positive Sentiment: Some analysts and investors view NFLX as increasingly attractive after its recent decline, citing Netflix’s scale, brand strength, content library and competitive moat. Longer-term shareholder returns also remain positive despite recent weakness. NFLX Stock Looks Attractive Even as Growth Slows Rivals’ Loss Signals Netflix’s Strong Moat
• Positive Sentiment: Commentary on Netflix’s buybacks and business economics provides potential valuation support, particularly with the shares trading well below their 52-week high and at a lower earnings multiple than earlier in the year. Netflix’s Stock Buybacks: History & Impact Explained
• Neutral Sentiment: Netflix’s latest reported quarter slightly exceeded earnings expectations, but revenue was just below consensus. Sales still grew 13.4% year over year, indicating continued expansion while also confirming that growth is moderating.
• Negative Sentiment: Wall Street is concerned that Netflix may have an engagement problem, especially as the company releases less viewing and engagement data. Reduced transparency could make it harder for investors to evaluate content performance and user momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: YouTube Premium’s planned bundle with Peacock and NBCUniversal sports highlights the growing competition for streaming subscribers, viewing time and entertainment budgets. This could pressure Netflix’s perceived growth rate and valuation. Is YouTube Going After Netflix?

Insiders Place Their Bets

In related news, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director owned 3,940 shares in the company, valued at approximately $338,721.80. The trade was a 98.99% decrease in their position. The transaction was disclosed in a filing 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, CFO Spencer Adam Neumann sold 9,253 shares of Netflix stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $6,563,353.65. This trade represents a 11.14% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 598,140 shares of company stock valued at $49,430,381. Insiders own 1.24% of the company’s stock.

Analyst Upgrades and Downgrades

NFLX has been the subject of several recent research reports. TD Cowen cut their target price on shares of Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, July 17th. DZ Bank reiterated a “buy” rating on shares of Netflix in a research report on Friday, April 17th. Oppenheimer set a $85.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. cut their price objective on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating for the company in a research report on Friday, July 17th. Finally, Citic Securities boosted their price objective on shares of Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research report on Monday, April 27th. Four investment 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 given a Sell rating to the stock. According to MarketBeat.com, Netflix has an average rating of “Moderate Buy” and a consensus price target of $103.48.

Netflix Trading Up 0.3%

Shares of NASDAQ:NFLX opened at $73.57 on Wednesday. The stock has a 50 day moving average of $76.08 and a 200 day moving average of $85.15. The company has a market cap of $306.34 billion, a PE ratio of 23.16, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (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 company had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period in the prior year, the firm posted $0.72 EPS. The firm’s quarterly revenue was up 13.4% compared to the same quarter last year. As a group, equities research analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

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.