Consulta Ltd Takes $70.32 Million Position in Netflix, Inc. $NFLX

Key Points

• Consulta Ltd opened a new position in Netflix during the fourth quarter, buying 750,000 shares valued at about $70.32 million. The stake represents 3.5% of the fund’s portfolio and makes Netflix its 12th-largest holding.
• Big institutional investors also increased their Netflix holdings sharply, including Vanguard, State Street, Geode Capital, Capital World Investors, and Morgan Stanley. Overall, institutional investors own 80.93% of Netflix shares.
• Netflix’s recent results beat expectations, with quarterly EPS of $1.23 versus $0.76 expected and revenue of $12.25 billion, up 16.2% year over year. However, the stock has been under pressure, with insiders selling shares recently and the latest commentary noting both a lower target from MoffettNathanson and concerns about competition and content decisions.

Consulta Ltd bought a new position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the fourth quarter, according to its most recent filing with the SEC. The fund bought 750,000 shares of the Internet television network's stock, valued at approximately $70,320,000. Netflix accounts for 3.5% of Consulta Ltd's investment portfolio, making the stock its 12th largest holding.

Several other institutional investors also recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Netflix by 912.5% in 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 acquiring an additional 351,493,659 shares during the last quarter. State Street Corp lifted its stake in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC grew its holdings 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 purchasing an additional 89,558,684 shares during the period. Capital World Investors increased its position in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley raised its stake in shares of Netflix by 903.0% in the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock valued at $8,002,414,000 after buying an additional 76,840,318 shares during the period. Institutional investors own 80.93% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on NFLX. Wells Fargo & Company started coverage on Netflix in a research note on Monday, March 9th. They set an "equal weight" rating and a $105.00 price target for the company. Huber Research upgraded Netflix from a "strong sell" rating to a "strong-buy" rating in a research note on Friday, February 27th. Cfra raised shares of Netflix from a "hold" rating to a "buy" rating and set a $115.00 price objective on the stock in a report on Friday, March 6th. New Street Research lifted their target price on shares of Netflix from $96.00 to $102.00 in a research note on Friday, April 17th. Finally, Citizens Jmp reissued a "market perform" rating on shares of Netflix in a research report on Wednesday, April 15th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $114.26.

Insider Buying and Selling at Netflix

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the company's stock in a transaction that occurred 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 sale, the chief executive officer owned 284,804 shares of the company's stock, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the completion of the sale, the chief executive officer owned 120,931 shares in the company, valued at $10,725,370.39. This represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,313,029 shares of company stock worth $120,315,776 in the last ninety days. Insiders own 1.24% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some market watchers say Netflix’s sharp selloff may be nearing a bottom, with technical commentary suggesting the stock could be stabilizing after a steep two-month decline.
• Neutral Sentiment: MoffettNathanson cut its price target on Netflix from $120 to $115 but kept a buy rating, signaling continued long-term confidence despite near-term pressure.
• Negative Sentiment: Netflix’s refusal to pursue Lionsgate, combined with the Fox-Roku deal, has fueled concerns that it is losing ground in the sector’s consolidation race and may face more competition around distribution and ad-supported growth.
• Negative Sentiment: Netflix also canceled The Boroughs after one season, a reminder that some content investments are still being pruned as the company remains selective on spending.

Netflix Stock Performance

Shares of NFLX opened at $76.96 on Thursday. Netflix, Inc. has a 52-week low of $75.01 and a 52-week high of $134.12. The stock's 50-day simple moving average is $89.75 and its 200 day simple moving average is $90.44. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The stock has a market capitalization of $324.06 billion, a price-to-earnings ratio of 24.86, a price-to-earnings-growth ratio of 1.00 and a beta of 1.50.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. During the same period in the prior year, the business posted $6.61 earnings per share. The company's revenue was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Research analysts forecast that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Netflix Company 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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