Baker Avenue Asset Management LP Buys 178,418 Shares of Netflix, Inc. $NFLX

Key Points

• Baker Avenue Asset Management increased its Netflix stake by 921.3% in the fourth quarter, buying 178,418 additional shares and bringing its total holding to 197,784 shares worth about $18.5 million.
• Netflix reported a strong quarter, with EPS of $1.23 beating estimates and revenue of $12.25 billion topping expectations, while quarterly revenue rose 16.2% year over year.
• Analysts remain broadly constructive on NFLX, with a Moderate Buy consensus and a price target of $114.82, even as several executives recently sold shares and insiders now own only 1.24% of the company.

Baker Avenue Asset Management LP lifted its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 921.3% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 197,784 shares of the Internet television network's stock after purchasing an additional 178,418 shares during the period. Baker Avenue Asset Management LP's holdings in Netflix were worth $18,544,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Imprint Wealth LLC bought a new position in Netflix during the third quarter worth about $25,000. Bare Financial Services Inc lifted its holdings in Netflix by 93.3% during the third quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network's stock worth $35,000 after acquiring an additional 14 shares in the last quarter. Horizon Financial Services LLC lifted its holdings in Netflix by 480.0% during the third quarter. Horizon Financial Services LLC now owns 29 shares of the Internet television network's stock worth $35,000 after acquiring an additional 24 shares in the last quarter. Redmont Wealth Advisors LLC bought a new position in Netflix during the third quarter worth about $36,000. Finally, Promus Capital LLC bought a new position in Netflix during the third quarter worth about $48,000. 80.93% of the stock is currently owned by institutional investors.

Netflix Stock Performance

NFLX opened at $87.35 on Thursday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The business's 50-day moving average price is $93.45 and its two-hundred day moving average price is $93.59. The company has a market capitalization of $367.81 billion, a price-to-earnings ratio of 28.21, a P/E/G ratio of 1.11 and a beta of 1.55. Netflix, Inc. has a 1 year low of $75.01 and a 1 year high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The business had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.Netflix's quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities analysts expect that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms have weighed in on NFLX. Rosenblatt Securities reduced their target price on Netflix from $96.00 to $95.00 and set a "neutral" rating on the stock in a report on Friday, April 17th. Citigroup began coverage on Netflix in a report on Thursday, April 16th. They set a "market perform" rating on the stock. Wells Fargo & Company began coverage on Netflix in a report on Monday, March 9th. They set an "equal weight" rating and a $105.00 target price on the stock. Piper Sandler reiterated an "overweight" rating and set a $115.00 target price (up from $103.00) on shares of Netflix in a report on Friday, April 17th. Finally, Wolfe Research reiterated an "outperform" rating and set a $107.00 target price on shares of Netflix in a report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $114.82.

Insiders Place Their Bets

In related news, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total value of $2,402,636.64. Following the sale, the chief executive officer owned 284,804 shares of the company's stock, valued at approximately $25,054,207.88. The trade was a 8.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix 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 in the company, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,422,769 shares of company stock valued at $135,144,073 in the last quarter. 1.24% of the stock is currently owned by corporate insiders.

Netflix Company 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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