Capital Research Global Investors Trims Holdings in Netflix, Inc. $NFLX

Key Points

• Capital Research Global Investors trimmed its Netflix stake by 0.6%, selling 28,451 shares to end the quarter with 4,706,442 shares (about $5.64 billion), representing 1.1% of its portfolio and its 21st largest position.
• Significant insider and institutional activity: insiders sold 1,520,133 shares worth $137.26 million last quarter (including Reed Hastings' ~$39.8M sale and CFO Spencer Neumann's sale of 28,630 shares for ~$2.78M), while large funds like Vanguard modestly increased their holdings and several firms opened or enlarged positions.
• Analysts are broadly constructive but mixed — consensus rating is a Moderate Buy with a ~$114.67 price target — and Netflix’s strategic moves (walking away from the WBD deal and buying AI startup InterPositive) are viewed as positives, though price-target cuts and valuation concerns present downside risk.

Capital Research Global Investors cut its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 0.6% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 4,706,442 shares of the Internet television network's stock after selling 28,451 shares during the quarter. Netflix makes up 1.1% of Capital Research Global Investors' investment portfolio, making the stock its 21st largest position. Capital Research Global Investors owned about 1.11% of Netflix worth $5,642,684,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of the company. Vanguard Group Inc. grew its stake in shares of Netflix by 0.4% during 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 buying an additional 142,238 shares during the period. CIBC Capital Markets Europe S.A. grew its stake in Netflix by 171.4% during the third quarter. CIBC Capital Markets Europe S.A. now owns 66,503 shares of the Internet television network's stock worth $79,732,000 after buying an additional 42,000 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Netflix by 6.6% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 302,182 shares of the Internet television network's stock valued at $362,292,000 after acquiring an additional 18,837 shares in the last quarter. NEOS Investment Management LLC raised its position in Netflix by 64.6% in the third quarter. NEOS Investment Management LLC now owns 177,297 shares of the Internet television network's stock valued at $212,565,000 after purchasing an additional 69,570 shares during the period. Finally, Bornite Capital Management LP purchased a new stake in shares of Netflix in the third quarter worth about $29,973,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

More Netflix News

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?

Netflix Trading Down 0.7%

Netflix stock opened at $98.32 on Tuesday. The company has a market cap of $415.12 billion, a P/E ratio of 38.91, a PEG ratio of 1.41 and a beta of 1.68. Netflix, Inc. has a 1 year low of $75.01 and a 1 year high of $134.12. The firm's 50-day moving average is $86.39 and its 200-day moving average is $103.39. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.01. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The business had revenue of $12.05 billion for the quarter, compared to the consensus estimate of $11.97 billion. During the same quarter last year, the business posted $0.43 EPS. The business's revenue was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, equities analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Evercore began coverage on Netflix in a report on Friday, February 27th. They issued an "outperform" rating and a $115.00 price target for the company. Royal Bank Of Canada restated a "hold" rating on shares of Netflix in a research note on Wednesday, January 21st. Barclays initiated coverage on shares of Netflix in a report on Monday, March 2nd. They issued an "equal weight" rating and a $115.00 price objective on the stock. Moffett Nathanson lowered their target price on Netflix from $140.00 to $115.00 and set a "buy" rating for the company in a research note on Wednesday, January 21st. Finally, William Blair reiterated an "outperform" rating on shares of Netflix in a research note on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and fourteen have issued a Hold rating to the company's stock. According to data from MarketBeat, Netflix has a consensus rating of "Moderate Buy" and a consensus price target of $114.67.

Insider Transactions at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 28,630 shares of the business's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $97.00, for a total transaction of $2,777,110.00. Following the completion of the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $7,157,339. The trade was a 27.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider David A. Hyman sold 5,727 shares of Netflix stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $81.06, for a total transaction of $464,230.62. Following the sale, the insider owned 316,100 shares in the company, valued at approximately $25,623,066. This represents a 1.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,520,133 shares of company stock worth $137,259,786 over the last quarter. Insiders own 1.37% of the company's stock.

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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