Capital Group Private Client Services Inc. Acquires 78,635 Shares of Netflix, Inc. $NFLX

Key Points

• Capital Group Private Client Services Inc. increased its Netflix stake by 666.5% in the fourth quarter, buying 78,635 additional shares and bringing its total holding to 90,433 shares worth about $8.48 million.
• Netflix reported strong quarterly results, posting $1.23 EPS versus $0.76 expected and revenue of $12.25 billion, while also beating estimates and growing revenue 16.2% year over year.
• Analyst sentiment remains broadly positive, with a Moderate Buy consensus and an average price target of $114.82, even as some insiders recently sold shares for tax withholding purposes.

Capital Group Private Client Services Inc. boosted its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 666.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 90,433 shares of the Internet television network's stock after purchasing an additional 78,635 shares during the period. Capital Group Private Client Services Inc.'s holdings in Netflix were worth $8,479,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also added to or reduced their stakes in NFLX. Vanguard Group Inc. increased its position in shares of Netflix by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network's stock valued at $46,183,983,000 after purchasing an additional 142,238 shares during the last quarter. Checchi Capital Advisers LLC increased its position in shares of Netflix by 875.7% in the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network's stock valued at $2,920,000 after purchasing an additional 27,951 shares during the last quarter. Contravisory Investment Management Inc. increased its position in shares of Netflix by 837.2% in the 4th quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network's stock valued at $10,443,000 after purchasing an additional 99,496 shares during the last quarter. BNC Wealth Management LLC increased its position in shares of Netflix by 991.3% in the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network's stock valued at $3,866,000 after purchasing an additional 37,451 shares during the last quarter. Finally, Crew Capital Management Ltd increased its position in shares of Netflix by 1,021.9% in the 4th quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network's stock valued at $847,000 after purchasing an additional 8,226 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

Netflix Stock Up 0.8%

Shares of NASDAQ:NFLX opened at $82.18 on Friday. The stock has a market cap of $346.04 billion, a P/E ratio of 26.54, a P/E/G ratio of 1.04 and a beta of 1.50. The firm has a fifty day moving average price of $92.21 and a 200 day moving average price of $92.07. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. 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 issued its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.76 by $0.47. The firm had revenue of $12.25 billion during the quarter, compared to analysts' expectations of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. Netflix's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Sell-side analysts predict that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Buying and Selling

In other news, CEO Theodore A. Sarandos sold 27,312 shares of the firm's stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total value of $2,402,636.64. Following the completion of the sale, the chief executive officer owned 284,804 shares in the company, valued at approximately $25,054,207.88. This trade represents a 8.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David A. Hyman sold 5,722 shares of the firm's stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at $27,842,088. This trade represents a 1.78% decrease in their position. 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 three months, insiders have sold 1,313,029 shares of company stock worth $120,315,776. 1.24% of the stock is currently owned by insiders.

Key Netflix News

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?

Analysts Set New Price Targets

A number of equities research analysts have commented on NFLX shares. JPMorgan Chase & Co. reissued a "buy" rating on shares of Netflix in a research report on Wednesday, April 22nd. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Netflix from $98.00 to $100.00 and gave the company a "hold" rating in a research report on Tuesday, April 14th. Seaport Research Partners increased their price objective on shares of Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a research report on Friday, April 17th. DZ Bank reissued a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Finally, Guggenheim reissued a "buy" rating and issued a $120.00 price objective on shares of Netflix in a research report on Friday, May 15th. 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.com, the company has a consensus rating of "Moderate Buy" and an average target price of $114.82.

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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