Capital Research Global Investors Purchases 37,661,365 Shares of Netflix, Inc. $NFLX

Key Points

• Capital Research Global Investors dramatically increased its Netflix stake by 800.2% in the fourth quarter, buying 37.7 million additional shares and ending with about 42.4 million shares valued at roughly $4.0 billion.
• Netflix’s latest quarterly results beat expectations, with EPS of $1.23 versus the $0.76 estimate and revenue of $12.25 billion, up 16.2% year over year.
• The company has seen notable insider selling, including large sales by Reed Hastings and David A. Hyman, while analysts remain broadly positive with a Moderate Buy consensus and an average price target of $114.82.

Capital Research Global Investors increased its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 800.2% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 42,367,807 shares of the Internet television network's stock after buying an additional 37,661,365 shares during the quarter. Netflix accounts for 0.7% of Capital Research Global Investors' portfolio, making the stock its 28th largest position. Capital Research Global Investors owned about 1.00% of Netflix worth $3,972,406,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Imprint Wealth LLC bought a new stake in Netflix in the 3rd quarter worth approximately $25,000. Bare Financial Services Inc lifted its position in Netflix by 93.3% in the 3rd quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network's stock worth $35,000 after buying an additional 14 shares during the last quarter. Horizon Financial Services LLC lifted its position in Netflix by 480.0% in the 3rd quarter. Horizon Financial Services LLC now owns 29 shares of the Internet television network's stock worth $35,000 after buying an additional 24 shares during the last quarter. Redmont Wealth Advisors LLC bought a new stake in Netflix in the 3rd quarter worth approximately $36,000. Finally, Promus Capital LLC bought a new stake in Netflix in the third quarter valued at approximately $48,000. Institutional investors own 80.93% of the company's stock.

Netflix Price Performance

Shares of NFLX stock opened at $82.18 on Friday. The stock has a market cap of $346.04 billion, a price-to-earnings ratio of 26.54, a PEG ratio of 1.04 and a beta of 1.50. The business's fifty day moving average is $92.21 and its 200 day moving average is $92.07. Netflix, Inc. has a twelve month low of $75.01 and a twelve month 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 issued its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.47. The company had revenue of $12.25 billion for the quarter, compared to analysts' expectations 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 period in the prior year, the firm earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Research analysts expect that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Transactions at Netflix

In other news, insider David A. Hyman sold 5,722 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total value of $503,993.76. Following the sale, the insider directly owned 316,100 shares of the company's stock, valued at approximately $27,842,088. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Reed Hastings sold 386,700 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the completion of the sale, the director directly owned 3,940 shares in the company, valued at approximately $338,721.80. This represents a 98.99% 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. In the last 90 days, insiders sold 1,313,029 shares of company stock valued at $120,315,776. 1.24% of the stock is currently owned by corporate insiders.

Netflix News Summary

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?

Wall Street Analysts Forecast Growth

NFLX has been the subject of several recent research reports. Evercore initiated coverage on Netflix in a research report on Friday, February 27th. They issued an "outperform" rating and a $115.00 price objective for the company. Barclays set a $110.00 price objective on Netflix and gave the company an "equal weight" rating in a research report on Friday, April 17th. Phillip Securities boosted their price objective on Netflix from $100.00 to $110.00 in a research report on Monday, April 20th. New Street Research boosted their price objective on Netflix from $96.00 to $102.00 in a research report on Friday, April 17th. Finally, Wedbush reiterated an "outperform" rating and issued a $118.00 price objective on shares of Netflix in a research report on Thursday, April 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average 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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