Arrowstreet Capital Limited Partnership Lowers Stock Position in Netflix, Inc. $NFLX

Arrowstreet Capital Limited Partnership lessened its position in shares of Netflix, Inc. (NASDAQ:NFLX) by 95.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 571,306 shares of the Internet television network’s stock after selling 10,786,044 shares during the period. Arrowstreet Capital Limited Partnership’s holdings in Netflix were worth $54,931,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in NFLX. Vanguard Group Inc. raised its holdings in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the period. State Street Corp grew its stake in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC increased its position in shares of 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 worth $9,305,336,000 after acquiring an additional 89,558,684 shares in the last quarter. Capital World Investors increased its position in shares of Netflix by 859.1% in 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 acquiring an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley raised its stake in shares of Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock valued at $8,002,414,000 after acquiring an additional 76,840,318 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.69, for a total value of $2,422,301.28. Following the completion of the sale, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction that occurred 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 sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 899,839 shares of company stock worth $80,141,661. Company insiders own 1.24% of the company’s stock.

Netflix Stock Performance

Shares of NFLX stock opened at $70.40 on Tuesday. The company has a market cap of $293.14 billion, a P/E ratio of 22.16, a PEG ratio of 0.88 and a beta of 1.52. The business has a 50 day moving average of $77.95 and a two-hundred day moving average of $85.87. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

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. As a group, analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Analysts Set New Price Targets

A number of brokerages have commented on NFLX. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. China Intl Cap upgraded Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. UBS Group dropped their target price on Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Wedbush reduced their price target on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research report on Friday, July 17th. Finally, Needham & Company LLC restated a “buy” rating on shares of Netflix in a report on Friday, April 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $103.48.

Netflix News Summary

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 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.