Ariose Capital Management Ltd Invests $17.81 Million in Netflix, Inc. $NFLX

Key Points

• Ariose Capital Management opened a new position in Netflix, acquiring 189,900 shares worth approximately $17.81 million, which equals about 6.0% of its portfolio and is its sixth-largest holding.
• Netflix’s board approved a $25 billion additional share repurchase authorization, driving pre-market gains and reinforcing analyst support amid a consensus "Moderate Buy" rating and a $114.53 average price target.
• Despite a Q1 beat, insiders have been net sellers (1,487,794 shares worth about $136.3 million in the last 90 days) and management’s weak Q2 guidance and rising churn remain the primary near-term risks, contributing to continued stock volatility.

Ariose Capital Management Ltd acquired a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 189,900 shares of the Internet television network's stock, valued at approximately $17,805,000. Netflix makes up 6.0% of Ariose Capital Management Ltd's investment portfolio, making the stock its 6th largest position.

Several other hedge funds and other institutional investors have also recently modified their holdings of NFLX. Hengehold Capital Management LLC boosted its holdings in Netflix by 3.3% in the 3rd quarter. Hengehold Capital Management LLC now owns 282 shares of the Internet television network's stock worth $338,000 after buying an additional 9 shares during the period. Financial Partners Group Inc boosted its holdings in Netflix by 0.9% in the 3rd quarter. Financial Partners Group Inc now owns 969 shares of the Internet television network's stock worth $1,162,000 after buying an additional 9 shares during the period. Seascape Capital Management boosted its holdings in shares of Netflix by 1.6% during the 3rd quarter. Seascape Capital Management now owns 568 shares of the Internet television network's stock valued at $681,000 after purchasing an additional 9 shares during the last quarter. Crews Bank & Trust boosted its holdings in shares of Netflix by 5.8% during the 3rd quarter. Crews Bank & Trust now owns 164 shares of the Internet television network's stock valued at $197,000 after purchasing an additional 9 shares during the last quarter. Finally, Apriem Advisors boosted its holdings in shares of Netflix by 0.6% during the 3rd quarter. Apriem Advisors now owns 1,567 shares of the Internet television network's stock valued at $1,879,000 after purchasing an additional 9 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Netflix news, insider David A. Hyman sold 5,727 shares of the company's stock in a transaction on Monday, February 9th. The shares were sold at an average price of $81.06, for a total value of $464,230.62. Following the sale, the insider directly owned 316,100 shares of the company's stock, valued at approximately $25,623,066. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Spencer Adam Neumann sold 28,630 shares of the company's stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $98.00, for a total transaction of $2,805,740.00. Following the completion of the sale, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $7,231,126. The trade was a 27.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,487,794 shares of company stock valued at $136,255,772 in the last 90 days. 1.37% of the stock is currently owned by insiders.

Netflix Price Performance

NASDAQ NFLX opened at $92.37 on Friday. The firm's fifty day simple moving average is $93.60 and its two-hundred day simple moving average is $97.70. The company has a current ratio of 1.41, a quick ratio of 1.19 and a debt-to-equity ratio of 0.43. Netflix, Inc. has a 12-month low of $75.01 and a 12-month high of $134.12. The firm has a market capitalization of $388.94 billion, a P/E ratio of 29.83, a P/E/G ratio of 1.20 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The firm had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business's quarterly revenue was up 16.2% compared to the same quarter last year. During the same period in the previous year, the company earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts forecast that Netflix, Inc. will post 3.53 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

NFLX has been the subject of several research reports. Canaccord Genuity Group set a $125.00 price objective on shares of Netflix and gave the company a "buy" rating in a report on Wednesday, January 21st. President Capital increased their price target on shares of Netflix from $133.00 to $134.00 and gave the company a "buy" rating in a report on Tuesday, March 31st. Wolfe Research reaffirmed an "outperform" rating and issued a $107.00 price target on shares of Netflix in a report on Friday, April 17th. Loop Capital set a $104.00 price target on shares of Netflix in a report on Tuesday, January 27th. Finally, Jefferies Financial Group lowered their price target on shares of Netflix from $134.00 to $128.00 and set a "buy" rating for the company in a report on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and fourteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $114.53.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Board approved a $25 billion additional share repurchase authorization (no expiration), boosting capital returns and supporting the share price rally. Netflix announces $25 billion share buyback (Reuters)
• Positive Sentiment: Market reaction: the buyback and messaging drove pre-market gains and helped stem the post-earnings selloff. Netflix authorizes fresh $25B buyback (MSN)
• Positive Sentiment: Wall Street support: JPMorgan reaffirmed a Buy on NFLX, and Daiwa raised its price target, both reinforcing investor confidence after the drop. JPMorgan reaffirms Buy (AmericanBankingNews) Daiwa raises price target to $102 (MarketScreener)
• Positive Sentiment: Notable institutional interest — Cathie Wood continued buying shares, signaling conviction from some active growth managers. Cathie Wood keeps buying (Barchart)
• Neutral Sentiment: Industry M&A backdrop: Warner Bros. shareholders approved a large Paramount Skydance acquisition — consolidation could reshape content economics and competitive dynamics, with mixed implications for Netflix (it was the losing bidder). Warner Bros shareholders approve deal (Yahoo Finance)
• Neutral Sentiment: Strategic moves: reports Netflix is in talks to buy Los Angeles studio space — this would be a content-production play that supports long-term content pipeline but is not an immediate earnings driver. Netflix in talks to buy LA studio space (Yahoo Market Chatter)
• Neutral Sentiment: Governance item: Netflix’s board recommended “No” on two shareholder proposals tied to ideological content concerns — likely low short-term financial impact but could matter to activist investors. Board recommends No on proposals (Forbes)
• Negative Sentiment: Guidance and churn risk: management’s weak Q2 guidance after a Q1 beat signaled rising subscriber churn, which sparked the initial selloff and remains the primary near-term headwind for the stock. Buyback-and-chill strategy but guidance weak (The Daily Upside)
• Negative Sentiment: Analyst and market reaction: several pieces discuss the post-earnings selloff and questions about subscriber momentum and valuation — signaling continued volatility until membership trends stabilize. What is next after Q1 guidance selloff (Seeking Alpha)

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.

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