Choate Investment Advisors Raises Stake in Netflix, Inc. $NFLX

Key Points

• Choate Investment Advisors increased its Netflix stake by 1,070.7% in the fourth quarter, ending with 39,019 shares valued at about $3.66 million.
• Netflix’s ad-supported tier has surpassed 250 million monthly viewers, and the company is also expanding into live and podcast-style programming through a deeper partnership with iHeartMedia.
• There are some headwinds: Canada’s streaming rules could raise Netflix’s compliance and content-contribution costs, even as analysts currently rate the stock a Moderate Buy on average.

Choate Investment Advisors boosted its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 1,070.7% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 39,019 shares of the Internet television network's stock after buying an additional 35,686 shares during the period. Choate Investment Advisors' holdings in Netflix were worth $3,658,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently bought and sold shares of the company. First Financial Corp IN boosted its position in Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. boosted its position in Netflix by 885.2% in the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after buying an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. boosted its position in Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares during the last quarter. Imprint Wealth LLC purchased a new stake in Netflix in the third quarter valued at approximately $25,000. Finally, MB Levis & Associates LLC boosted its position in Netflix by 177.8% in the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network's stock valued at $28,000 after buying an additional 192 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s ad-supported tier has surpassed 250 million monthly viewers, reinforcing the company’s advertising growth story and supporting the bull case for future revenue expansion. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Netflix is deepening its partnership with iHeartMedia by streaming “The Breakfast Club” live daily, a sign it is pushing further into live and podcast-style programming that could broaden engagement and ad inventory. iHeartMedia and Netflix Deepen Partnership with Daily Live Video Stream of The Breakfast Club
• Positive Sentiment: CNBC highlighted Netflix as a “final trade,” suggesting some short-term trading interest from market watchers. IBM, ServiceNow, Netflix And A Basic Materials Stock: CNBC's 'Final Trades'
• Neutral Sentiment: BetterInvesting questioned whether Netflix is fairly valued after its recent report, which keeps the stock in “show-me” territory even after strong earnings and revenue growth. BetterInvesting™ Magazine Update on Netflix NASDAQ: NFLX and ExlService Holdings Inc. NASDAQ: EXLS
• Neutral Sentiment: Analyst commentary noted Netflix as a possible suitor if IMAX is sold, but this is speculative and not a confirmed deal driver. IMAX Potential Suitors Include Netflix, Apple, Wedbush Says
• Negative Sentiment: Canada’s new streaming rules would require Netflix to contribute a larger share of domestic revenue to Canadian content, raising compliance costs for the business. Canada Raises Streaming Content Requirement to 15% for Netflix, Disney, Amazon
• Negative Sentiment: Separate reporting also flagged higher costs from the same Canadian policy change, adding a modest regulatory headwind for Netflix and other streamers. Netflix, Spotify to face higher costs as CRTC changes rules

Insider Transactions at Netflix

In related news, insider David A. Hyman sold 5,722 shares of Netflix stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total value of $503,993.76. Following the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $27,842,088. This trade represents a 1.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the sale, the chief executive officer directly owned 284,804 shares in the company, valued at $25,054,207.88. This represents a 8.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 1,422,769 shares of company stock worth $135,144,073 in the last ninety days. Company insiders own 1.24% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on NFLX shares. DZ Bank reiterated a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Oppenheimer set a $120.00 price objective on Netflix and gave the stock an "outperform" rating in a research report on Friday, April 17th. Pivotal Research set a $96.00 price objective on Netflix and gave the stock a "hold" rating in a research report on Friday, April 17th. President Capital upped their price objective on Netflix from $133.00 to $134.00 and gave the stock a "buy" rating in a research report on Tuesday, March 31st. Finally, Freedom Capital upgraded Netflix from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, January 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $114.82.

Netflix Stock Performance

Netflix stock opened at $88.60 on Monday. Netflix, Inc. has a 12 month low of $75.01 and a 12 month high of $134.12. The firm has a market cap of $373.08 billion, a PE ratio of 28.62, a P/E/G ratio of 1.13 and a beta of 1.55. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The stock's 50 day simple moving average is $93.88 and its two-hundred day simple moving average is $93.93.

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 net margin of 28.52% and a return on equity of 40.92%. The firm had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. During the same quarter last year, the company earned $6.61 EPS. The firm's revenue for the quarter 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 anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

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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