Capital International Investors Increases Stock Holdings in Netflix, Inc. $NFLX

Key Points

• Capital International Investors boosted its Netflix stake by 710.3% in the fourth quarter, ending with 26.46 million shares worth about $2.48 billion.
• Several other big institutional investors also added heavily to Netflix, and hedge funds now own 80.93% of the company’s stock, highlighting strong institutional interest.
• Netflix reported a strong quarter with EPS of $1.23 versus $0.76 expected and revenue of $12.25 billion, while analysts remain broadly positive with a Moderate Buy rating and an average price target of $114.82.

Capital International Investors increased its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 710.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 26,461,233 shares of the Internet television network's stock after acquiring an additional 23,195,675 shares during the quarter. Capital International Investors owned about 0.63% of Netflix worth $2,481,007,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the period. Geode Capital Management LLC lifted its position in Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after buying an additional 89,558,684 shares during the period. Norges Bank purchased a new position in Netflix during the fourth quarter valued at $5,803,248,000. Baillie Gifford & Co. lifted its position in Netflix by 912.3% during the fourth quarter. Baillie Gifford & Co. now owns 36,940,035 shares of the Internet television network's stock valued at $3,463,498,000 after buying an additional 33,290,988 shares during the period. Finally, Jennison Associates LLC lifted its position in Netflix by 639.9% during the fourth quarter. Jennison Associates LLC now owns 34,871,951 shares of the Internet television network's stock valued at $3,269,594,000 after buying an additional 30,158,900 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix News Roundup

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 Trading Up 0.8%

Netflix stock opened at $82.18 on Friday. The business has a 50-day simple moving average of $92.21 and a two-hundred day simple moving average of $92.07. The company 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. Netflix, Inc. has a 52-week low of $75.01 and a 52-week high of $134.12. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly 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. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the previous year, the company posted $6.61 EPS. The business's quarterly revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts predict that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Activity

In other news, insider David A. Hyman sold 5,722 shares of Netflix stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the transaction, the insider directly owned 316,100 shares of the company's stock, valued at $27,842,088. The trade was a 1.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Reed Hastings sold 420,550 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total value of $40,158,319.50. Following the completion of the transaction, the director directly owned 3,940 shares in the company, valued at approximately $376,230.60. This represents a 99.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,313,029 shares of company stock worth $120,315,776. 1.24% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

NFLX has been the subject of several recent analyst reports. Evercore initiated coverage on Netflix in a research report on Friday, February 27th. They issued an "outperform" rating and a $115.00 price target for the company. Oppenheimer set a $120.00 price target on Netflix and gave the stock an "outperform" rating in a research report on Friday, April 17th. The Goldman Sachs Group raised Netflix from a "neutral" rating to a "buy" rating in a research report on Monday, April 13th. Wells Fargo & Company assumed coverage on Netflix in a research report on Monday, March 9th. They issued an "equal weight" rating and a $105.00 price target for the company. Finally, New Street Research lifted their price objective on Netflix from $96.00 to $102.00 in a report on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average 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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