Capital International Investors Lowers Stock Position in Netflix, Inc. $NFLX

Key Points

• Capital International Investors trimmed its Netflix stake by 1.3% in Q3, selling 42,786 shares and now holds 3,265,558 shares (~0.77% of the company) valued at about $3.915 billion.
• Institutional ownership is high at 80.93%, while insiders have sold heavily—1,520,133 shares worth $137.26 million over the past 90 days (including Reed Hastings' ~$39.8M sale); insiders now own 1.37% of the stock.
• Netflix slightly beat recent quarterly estimates (EPS $0.56 vs. $0.55; revenue up 17.6% YoY), and analysts maintain a consensus rating of Moderate Buy with an average price target of $114.67, even as valuation sits at a PE of ~38.9 and market cap around $415B.

Capital International Investors decreased its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 1.3% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 3,265,558 shares of the Internet television network's stock after selling 42,786 shares during the period. Capital International Investors owned approximately 0.77% of Netflix worth $3,915,215,000 at the end of the most recent reporting period.

A number of other large investors have also modified their holdings of the business. Bell Investment Advisors Inc boosted its stake in shares of Netflix by 3.1% in the second quarter. Bell Investment Advisors Inc now owns 298 shares of the Internet television network's stock valued at $399,000 after buying an additional 9 shares in the last quarter. Weaver Consulting Group raised its position in Netflix by 4.1% in the second quarter. Weaver Consulting Group now owns 231 shares of the Internet television network's stock worth $309,000 after acquiring an additional 9 shares in the last quarter. Natural Investments LLC raised its position in Netflix by 0.5% in the third quarter. Natural Investments LLC now owns 1,668 shares of the Internet television network's stock worth $1,999,000 after acquiring an additional 9 shares in the last quarter. Hengehold Capital Management LLC lifted its holdings in Netflix by 3.3% in the third quarter. Hengehold Capital Management LLC now owns 282 shares of the Internet television network's stock valued at $338,000 after acquiring an additional 9 shares during the period. Finally, Financial Partners Group Inc boosted its position in shares of Netflix by 0.9% during the 3rd quarter. Financial Partners Group Inc now owns 969 shares of the Internet television network's stock worth $1,162,000 after purchasing an additional 9 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Price Performance

Netflix stock opened at $98.32 on Tuesday. 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 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. The firm's 50-day simple moving average is $86.39 and its 200 day simple moving average is $103.39. The firm has a market capitalization of $415.12 billion, a PE ratio of 38.91, a P/E/G ratio of 1.41 and a beta of 1.68.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating analysts' consensus estimates of $0.55 by $0.01. The firm had revenue of $12.05 billion for the quarter, compared to analysts' expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The firm's revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, equities research analysts predict that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Evercore initiated coverage on shares of Netflix in a research note on Friday, February 27th. They set an "outperform" rating and a $115.00 price target on the stock. The Goldman Sachs Group reiterated a "neutral" rating and issued a $100.00 price objective (down from $112.00) on shares of Netflix in a research note on Wednesday, January 21st. Phillip Securities raised shares of Netflix from a "sell" rating to a "moderate buy" rating and boosted their price objective for the stock from $95.00 to $100.00 in a report on Monday, January 26th. Susquehanna raised shares of Netflix to a "positive" rating and set a $112.00 target price for the company in a report on Wednesday, January 21st. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Netflix in a research report on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and fourteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $114.67.

Insiders Place Their Bets

In other news, insider Cletus R. Willems sold 3,136 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $82.67, for a total transaction of $259,253.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider David A. Hyman sold 5,727 shares of the company's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $81.06, for a total value of $464,230.62. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $25,623,066. The trade was a 1.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,520,133 shares of company stock valued at $137,259,786. Corporate insiders own 1.37% of the company's stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Walking away from the proposed WBD deal is being viewed as a net positive by many analysts because Netflix avoided taking on heavy debt and regulatory risk while keeping roughly $2.8B from the process — a boost to capital flexibility and organic growth plans. Why Netflix Is Better Off Without Warner Bros. Discovery
• Positive Sentiment: Netflix purchased Ben Affleck’s AI filmmaking startup InterPositive, signaling investment in AI-driven production tools that could lower content costs or accelerate creative output. That strategic tech buy supports the company’s long-term content/production roadmap. How Do You Like Them Apples? Netflix Buys Ben Affleck's AI Start-Up.
• Positive Sentiment: Analyst sentiment remains generally constructive: the consensus rating sits around “Moderate Buy,” and some top analysts have praised Netflix for returning to its core strategy after the WBD episode. That institutional support helps buoy the stock even amid headline noise. Netflix, Inc. NASDAQ: NFLX Given Consensus Rating of "Moderate Buy" by Analysts
• Neutral Sentiment: Wells Fargo resumed coverage with an Equal Weight rating and a $105 target — a cautious stance that signals upside is not a consensus slam-dunk and keeps expectations in check. Netflix Stock Can Heal From Warner Bros. ‘Scars,’ Analyst Says. Why He Still Won’t Make It a Buy.
• Neutral Sentiment: Longer-term price predictions and valuation pieces are mixed: some bullish five‑year forecasts are balanced by warnings that increased competition could compress Netflix’s premium multiple. These narratives help explain stock volatility as investors debate growth vs. valuation. Prediction: Netflix Stock Will Hit This Price in 5 Years
• Negative Sentiment: Bank of America trimmed its price target to $125, indicating some analysts see less upside from current levels; such cuts can weigh on momentum and prompt more conservative positioning. Bank of America Cuts Netflix NASDAQ: NFLX Price Target to $125.00
• Negative Sentiment: Insider selling: Netflix co‑founder Reed Hastings sold about $39.8M in stock recently. While insiders sell for many reasons, such large sales can trigger investor concern about near-term upside or be viewed as profit-taking after the run-up. Co-Founder Reed Hastings Just Dumped $40 Million in Netflix Stock. Should You Ditch NFLX Too?
• Negative Sentiment: Several outlets are flagging the risk that Netflix’s multi‑year rally already prices in strong growth, raising the odds of a correction if subscriber/ads growth or margins disappoint. That valuation scrutiny is pressuring sentiment. Is Netflix Stock Heading For A Correction?

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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