Capital Group Investment Management PTE. LTD. Raises Position in Netflix, Inc. $NFLX

Key Points

• Capital Group Investment Management PTE. LTD. increased its Netflix stake by 621% in the fourth quarter, adding 84,057 shares and bringing its total to 97,592 shares worth about $9.15 million.
• Netflix continues to see strong institutional interest, with hedge funds and other investors owning 80.93% of the stock overall. Several smaller firms also slightly increased their positions during the quarter.
• Despite recent insider selling by CFO Spencer Neumann and CEO Theodore Sarandos, Netflix’s latest earnings beat expectations, and analysts remain broadly constructive with a Moderate Buy consensus and a target price of $114.82.

Capital Group Investment Management PTE. LTD. boosted its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 621.0% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 97,592 shares of the Internet television network's stock after buying an additional 84,057 shares during the period. Netflix accounts for approximately 1.5% of Capital Group Investment Management PTE. LTD.'s portfolio, making the stock its 13th largest position. Capital Group Investment Management PTE. LTD.'s holdings in Netflix were worth $9,150,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Apriem Advisors lifted its holdings in shares of Netflix by 0.6% during the third 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. Tortoise Investment Management LLC lifted its holdings in shares of Netflix by 10.8% during the third quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network's stock valued at $110,000 after purchasing an additional 9 shares during the last quarter. Brass Tax Wealth Management Inc. lifted its holdings in shares of Netflix by 3.2% during the third quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network's stock valued at $345,000 after purchasing an additional 9 shares during the last quarter. Pacific Sun Financial Corp lifted its holdings in shares of Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock valued at $688,000 after purchasing an additional 9 shares during the last quarter. Finally, Heritage Wealth Management Inc. CA lifted its holdings in shares of Netflix by 3.8% during the third quarter. Heritage Wealth Management Inc. CA now owns 274 shares of the Internet television network's stock valued at $329,000 after purchasing an additional 10 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the business's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the sale, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $6,563,353.65. The trade was a 11.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Theodore A. Sarandos sold 27,312 shares of the business's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction 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. This represents a 8.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 1,313,029 shares of company stock worth $120,315,776. 1.24% of the stock is owned by corporate insiders.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is getting a boost from reports that Canada reversed a requirement that U.S. streaming services contribute part of local revenue to Canadian content, removing a potential cost/regulatory headwind. Netflix Stock Rises After Eight-Day Losing Streak. What’s Fueling the Move.
• Positive Sentiment: Netflix is expanding AI-driven viewing tools and content discovery features, including more personalized recommendations and a voice-based interface, which could improve engagement and retention. Netflix Bets On AI Tools As Stock Trades Below Analyst Targets
• Positive Sentiment: Bernstein said Netflix’s core business remains strong, reinforcing the view that the company’s underlying growth engine is intact despite recent weakness in the stock. “Don’t Ignore This,” Bernstein Analyst Says Netflix’s (NFLX) Core Engine Remains Strong
• Positive Sentiment: Wall Street commentary remains broadly optimistic, with analysts keeping a constructive view on Netflix after its strong earnings and revenue beat last quarter. Wall Street Bulls Look Optimistic About Netflix (NFLX): Should You Buy?

Netflix Price Performance

Shares of NFLX opened at $82.18 on Friday. The firm has a market cap of $346.04 billion, a PE ratio of 26.54, a P/E/G ratio of 1.04 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a fifty day simple moving average of $92.21 and a two-hundred day simple moving average of $92.07. 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 announced 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. The business had revenue of $12.25 billion during 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 company's quarterly revenue was up 16.2% compared to the same quarter last year. During the same period in the previous year, the business earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current year.

Analysts Set New Price Targets

Several research firms have recently issued reports on NFLX. Phillip Securities lifted their target price on shares of Netflix from $100.00 to $110.00 in a report on Monday, April 20th. Needham & Company LLC reiterated a "buy" rating on shares of Netflix in a report on Friday, April 17th. Barclays set a $110.00 target price on shares of Netflix and gave the company an "equal weight" rating in a report on Friday, April 17th. Moffett Nathanson lifted their target price on shares of Netflix from $115.00 to $120.00 and gave the company a "buy" rating in a report on Tuesday, April 14th. Finally, Pivotal Research set a $96.00 target price on shares of Netflix and gave the company a "hold" rating in a report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $114.82.

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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