Birinyi Associates Inc. Lowers Holdings in Netflix, Inc. $NFLX

Key Points

• Birinyi Associates Inc. cut its Netflix stake by 77.7% in the first quarter, leaving it with 5,100 shares valued at about $490,000.
• Netflix reported stronger-than-expected Q1 results, earning $1.23 per share versus $0.76 expected and posting $12.25 billion in revenue, up 16.2% year over year.
• Despite mixed analyst moves and recent insider selling, Wall Street still holds a Moderate Buy view on Netflix with a consensus price target of $112.51.

Birinyi Associates Inc. decreased its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 77.7% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,100 shares of the Internet television network's stock after selling 17,785 shares during the period. Birinyi Associates Inc.'s holdings in Netflix were worth $490,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of NFLX. Vanguard Group Inc. raised its holdings in Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the last quarter. State Street Corp boosted its stake in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors increased its holdings in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Stock Performance

NASDAQ:NFLX opened at $73.83 on Tuesday. The stock has a 50-day simple moving average of $81.38 and a two-hundred day simple moving average of $87.45. The firm has a market capitalization of $310.88 billion, a PE ratio of 23.85, a P/E/G ratio of 0.93 and a beta of 1.52. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. Netflix, Inc. has a 52-week low of $70.86 and a 52-week high of $127.75.

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 for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. During the same quarter in the previous year, the company earned $6.61 EPS. Netflix's revenue for the quarter was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts forecast that Netflix, Inc. will post 3.6 EPS for the current year.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. Bank of America reaffirmed a "buy" rating and set a $125.00 price target on shares of Netflix in a report on Monday, May 18th. Oppenheimer reduced their price objective on Netflix from $120.00 to $100.00 and set an "outperform" rating for the company in a report on Monday. The Goldman Sachs Group lowered Netflix from a "neutral" rating to an "underweight" rating in a research report on Thursday, June 18th. Daiwa Securities Group upped their target price on shares of Netflix from $97.00 to $102.00 and gave the company an "outperform" rating in a research note on Thursday, April 23rd. Finally, Phillip Securities raised their price target on shares of Netflix from $100.00 to $110.00 in a report on Monday, April 20th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $112.51.

Insider Activity

In related news, CEO Gregory K. Peters sold 27,312 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total value of $2,422,301.28. Following the transaction, the chief executive officer directly owned 120,931 shares of the company's stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Reed Hastings sold 386,700 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the sale, the director directly owned 3,940 shares of the company's stock, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 899,839 shares of company stock valued at $80,141,661 in the last three months. 1.24% of the stock is currently owned by insiders.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts remain constructive on Netflix heading into earnings, with TD Cowen, JPMorgan, Wedbush and others pointing to solid profit growth, expanding ad revenue, better ad pricing and stronger content in the second half of the year. Article Title
• Positive Sentiment: Options traders are betting on a comeback quarter, suggesting some market participants expect Netflix to beat subdued expectations after the stock’s sharp decline and low valuation. Article Title
• Positive Sentiment: Retail and value investors appear to be rotating back into NFLX because the shares have dropped to multi-year lows, making the stock look cheaper relative to growth and free-cash-flow potential. Article Title
• Neutral Sentiment: Netflix also announced an exclusive live stream of MLB’s Home Run Derby, reinforcing its push into live sports and event programming, but the near-term stock impact is likely limited unless it shows broader engagement benefits. Article Title
• Negative Sentiment: Some firms, including KeyBanc and Oppenheimer, trimmed price targets and warned the Q2 report may be only “largely in line,” reflecting lingering concerns about subscriber engagement, content costs and whether advertising can offset weaker sentiment. Article Title
• Negative Sentiment: Multiple reports note that NFLX has fallen sharply from recent highs and that Wall Street expects a tough quarter, so expectations remain fragile and the stock could swing if results or guidance disappoint. Article Title

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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