What does the smart money think about Netflix, Inc. (NASDAQ:NFLX)?
At the end of first quarter, there was a change of 7% in hedge fund positions in the stock from the previous quarter. There were some hedge fund managers who increased their holdings in the company and there were a few who opened fresh positions in the stock in the first quarter.
According to Insider Monkey’s database, Coatue Management, managed by Philippe Laffont, holds the largest position in Netflix, Inc. (NASDAQ:NFLX). Coatue Management holds around 1.7 million shares valued at $734.7 million, comprising 7% of its 13F portfolio. Following Coatue Management is Icahn Capital LP, led by Carl Icahn, holding around 1.4 million shares, worth $588.3 million and accounting for 1.8% of its 13F portfolio. Other hedge funds with long positions in the stock includes Karthik Sarma’s SRS Investment Management, and Lansdowne Partners, led by Paul Ruddock and Steve Heinz.
As the number of hedge fund positions in the stock went up in the quarter, there were a few hedge funds who opened fresh positions in the stock. The biggest position of these was initiated by Criterion Capital, managed by Christopher Lord. Criterion purchased 95,464 shares, which were valued at $39.8 million at the end of the quarter. Eric Chen’s Antipodean Advisors also initiated a $27.1 million position during the quarter. The other funds with new positions in the stock included Christopher Medlock James’ Partner Fund Management, Millennium Management Subsidiary’s Blue Arrow Capital Management, and John Murphy‘s Alydar Capital.
Even though the number of hedge fund positions in the stock has increased, in a relative sense overall, aggregate capital investment in the stock by these hedge funds remained almost flat or slightly negative in the quarter. Many insiders also opted to sell their shares during the quarter and there were no insider purchases of the shares. But, the stock keeps soaring on analyst upgrades and strong global subscriber growth. The stock appears set to go further higher yet with the announcement of the 7-for-1 stock split plans, even though they were widely expected and some even say, already baked into the stock. Nonetheless, and despite hedge funds remaining neutral on the stock overall, based on the recent trend we recommend buying this stock.