Netflix, Inc. (NASDAQ:NFLX) has experienced an increase in hedge fund sentiment recently. It was upgraded by Cantor Fitzgerald this morning by 20%, and the firm’s price target now rests 7.8% higher than current levels. Let’s take a look at what hedge funds and corporate insiders were doing to prepare for this event, and interestingly, if some of them disagreed with the move.
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Consequently, let’s take a peek at the recent action surrounding Netflix, Inc. (NASDAQ:NFLX).
How have hedgies been trading Netflix, Inc. (NASDAQ:NFLX)?
In preparation for this year, a total of 30 of the hedge funds we track were bullish in this stock, a change of 30% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially.
When looking at the hedgies we track, Icahn Capital LP, managed by Carl Icahn, holds the biggest position in Netflix, Inc. (NASDAQ:NFLX). Icahn Capital LP has a $514 million position in the stock, comprising 4% of its 13F portfolio. The second largest stake is held by D. E. Shaw of D E Shaw, with a $180 million call position; 1.9% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Philippe Laffont’s Coatue Management, Barry Rosenstein’s JANA Partners and Ken Griffin’s Citadel Investment Group.
Now, some big names have jumped into Netflix, Inc. (NASDAQ:NFLX) headfirst. Coatue Management, managed by Philippe Laffont, initiated the largest position in Netflix, Inc. (NASDAQ:NFLX). Coatue Management had 118 million invested in the company at the end of the quarter. Christopher Lord’s Criterion Capital also initiated a $40 million position during the quarter. The following funds were also among the new NFLX investors: Brian Kelly’s Asian Century Quest, Christopher Medlock James’s Partner Fund Management, and Phill Gross and Robert Atchinson’s Adage Capital Management.
How are insiders trading Netflix, Inc. (NASDAQ:NFLX)?
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past half-year. Over the latest six-month time frame, Netflix, Inc. (NASDAQ:NFLX) has seen zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Netflix, Inc. (NASDAQ:NFLX). These stocks are Hastings Entertainment, Inc. (NASDAQ:HAST) and Trans World Entertainment Corporation (NASDAQ:TWMC). This group of stocks belong to the music & video stores industry and their market caps match NFLX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Hastings Entertainment, Inc. (NASDAQ:HAST)||1||1||3|
|Trans World Entertainment Corporation (NASDAQ:TWMC)||2||0||2|
With the results demonstrated by the aforementioned tactics, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Netflix, Inc. (NASDAQ:NFLX) shareholders fit into this picture quite nicely.