Buttonwood Financial Advisors Inc. Raises Stake in Netflix, Inc. $NFLX

Key Points

• Buttonwood Financial Advisors Inc. increased its Netflix stake by 888.8% in the fourth quarter, ending with 19,104 shares worth about $1.79 million.
• Netflix continues to attract broad institutional support, with hedge funds and other investors owning 80.93% of the company’s stock and several firms also adding to their positions.
• The article highlights mixed signals for Netflix: analysts remain generally bullish on growth and pricing power, but the company also faces legal and regulatory risk from a Texas lawsuit over alleged data collection and “dark patterns.”

Buttonwood Financial Advisors Inc. boosted its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 888.8% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,104 shares of the Internet television network's stock after buying an additional 17,172 shares during the quarter. Buttonwood Financial Advisors Inc.'s holdings in Netflix were worth $1,791,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also bought and sold shares of NFLX. Brighton Jones LLC boosted its stake in Netflix by 5.0% in the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock worth $4,804,000 after buying an additional 257 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after purchasing an additional 144 shares during the period. Sivia Capital Partners LLC boosted its stake in shares of Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after purchasing an additional 246 shares during the period. Strategic Investment Advisors MI boosted its stake in shares of Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after purchasing an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. boosted its stake in shares of Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after purchasing an additional 228 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix said its content investments have topped $135 billion over the past decade and generated an estimated $325 billion of economic impact worldwide, supporting more than 425,000 jobs. That reinforces the scale of its production engine and can bolster confidence in the long-term growth story. Reuters article
• Positive Sentiment: Investor sentiment also appears to be improving around Netflix’s pricing power and ad-supported business, with analysts and market commentary pointing to rising revenue, improving margins, and strong ad growth expectations. Benzinga article
• Positive Sentiment: Netflix is still drawing bullish Wall Street coverage, with recent analyst price targets clustering well above the current share price, suggesting many expect further upside if execution stays on track. Zacks article
• Neutral Sentiment: Netflix is also being highlighted in media comparisons versus Disney and other peers, but these pieces are mostly commentary on the streaming landscape rather than new company-specific fundamentals. 247WallSt article
• Negative Sentiment: Texas Attorney General Ken Paxton has sued Netflix, alleging the company illegally collected data on children and used “dark patterns” to make the platform addictive. Even if Netflix disputes the claims, the lawsuit creates legal, regulatory, and reputational risk that could pressure the stock. Reuters lawsuit article

Netflix Price Performance

Shares of Netflix stock opened at $87.66 on Wednesday. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The company has a market cap of $369.12 billion, a PE ratio of 28.31, a P/E/G ratio of 1.09 and a beta of 1.55. The business has a 50 day moving average of $95.38 and a 200 day moving average of $95.37. Netflix, Inc. has a 52 week low of $75.01 and a 52 week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The company had revenue of $12.25 billion during 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%.The firm's revenue for the quarter was up 16.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities research analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on NFLX. Wolfe Research reissued an "outperform" rating and set a $107.00 price objective on shares of Netflix in a research note on Friday, April 17th. Citigroup began coverage on Netflix in a research note on Thursday, April 16th. They set a "market perform" rating for the company. Erste Group Bank lowered Netflix from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Citizens Jmp reissued a "market perform" rating on shares of Netflix in a research note on Wednesday, April 15th. Finally, Loop Capital set a $104.00 price objective on Netflix in a research note on Tuesday, January 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and fifteen have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $114.82.

Insider Activity at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the company'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 transaction of $2,422,301.28. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at $10,725,370.39. This represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider David A. Hyman sold 5,722 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total value of $503,993.76. Following the transaction, the insider owned 316,100 shares of the company's stock, valued at approximately $27,842,088. This represents a 1.78% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,422,769 shares of company stock valued at $135,144,073 over the last 90 days. Company insiders own 1.37% of the company's stock.

About Netflix

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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