Davis Rea LTD. Makes New Investment in Netflix, Inc. $NFLX

Key Points

• Davis Rea LTD. opened a new position in Netflix by purchasing 40,279 shares in Q4, valued at about $3.78 million.
• The Netflix board authorized an additional $25 billion share buyback with no expiration, a significant move to boost capital returns and support the stock.
• Several large institutional investors dramatically increased stakes in Q4 — notably Baillie Gifford (+912% to 36.94M shares) and Sumitomo Mitsui (+891% to 12.10M) — leaving institutions with about 80.93% ownership.

Davis Rea LTD. purchased a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 40,279 shares of the Internet television network's stock, valued at approximately $3,777,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of NFLX. Baillie Gifford & Co. raised its position in Netflix by 912.3% in the fourth quarter. Baillie Gifford & Co. now owns 36,940,035 shares of the Internet television network's stock worth $3,463,498,000 after acquiring an additional 33,290,988 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in Netflix by 891.3% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 12,099,908 shares of the Internet television network's stock worth $1,134,487,000 after acquiring an additional 10,879,276 shares in the last quarter. Nordea Investment Management AB raised its position in Netflix by 886.6% in the fourth quarter. Nordea Investment Management AB now owns 9,667,997 shares of the Internet television network's stock worth $902,798,000 after acquiring an additional 8,688,113 shares in the last quarter. Assenagon Asset Management S.A. raised its position in Netflix by 983.1% in the fourth quarter. Assenagon Asset Management S.A. now owns 6,234,314 shares of the Internet television network's stock worth $584,529,000 after acquiring an additional 5,658,740 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA raised its position in Netflix by 430.6% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 6,738,241 shares of the Internet television network's stock worth $631,777,000 after acquiring an additional 5,468,262 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Board authorizes an extra $25 billion share buyback (no expiration), boosting capital returns and supporting the share price. Netflix announces $25 billion share buyback
• Positive Sentiment: Daiwa raised its price target to $102 and kept an outperform rating, signaling some analyst conviction in upside from current levels. Daiwa Securities adjusts price target on Netflix to $102
• Positive Sentiment: JPMorgan reaffirmed a buy stance and investors are pointing to product initiatives (see below) and engagement gains as reasons to stay constructive. JPMorgan keeps Netflix buy rating
• Positive Sentiment: Netflix plans a TikTok‑style vertical video feed to capture short‑form engagement and funnel viewers into longer content — a potential long‑term engagement/monetization tailwind. Netflix Eyes TikTok-Style Feed To Capture 'Snackable' Viewing
• Neutral Sentiment: Netflix is in talks to buy Radford Studio Center (historic LA lot) — could lower production costs and secure capacity, but transaction terms/outcome remain uncertain. Netflix In Negotiations To Buy Radford Studios
• Neutral Sentiment: Board recommended voting “no” on two shareholder proposals framed as anti‑woke; governance/item resolution is unlikely to move fundamentals materially short term. Netflix Boards Recommends 'No' Votes On Two 'Anti-Woke' Proposals
• Negative Sentiment: Investors continue to react to the post‑earnings sell‑off tied to softer guidance despite mixed/solid underlying engagement — the guidance shock remains the primary near‑term headwind for the stock. Netflix (NFLX) Stock Plunges 13%: Should Investors Buy the Dip?
• Negative Sentiment: Warner Bros. Discovery shareholders approved the $110B sale to Paramount Skydance — Netflix lost out in the takeover, and industry consolidation could reshape competitive dynamics for content/licensing and future M&A opportunities. Warner Bros Shareholders Approve $110 Billion Paramount Skydance Merger

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 420,550 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total value of $40,158,319.50. Following the completion of the sale, the director directly owned 3,940 shares in the company, valued at approximately $376,230.60. The trade was a 99.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,727 shares of the business's stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at approximately $25,623,066. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,487,794 shares of company stock worth $136,255,772 over the last quarter. Insiders own 1.37% of the company's stock.

Netflix Stock Down 0.5%

Shares of Netflix stock opened at $92.82 on Friday. The firm has a market cap of $390.85 billion, a price-to-earnings ratio of 29.98, a P/E/G ratio of 1.21 and a beta of 1.67. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.19. Netflix, Inc. has a 52-week low of $75.01 and a 52-week high of $134.12. The stock has a 50-day simple moving average of $93.29 and a 200-day simple moving average of $97.74.

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 (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm's revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities research analysts expect that Netflix, Inc. will post 3.53 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

NFLX has been the topic of a number of analyst reports. Sanford C. Bernstein dropped their price target on Netflix from $115.00 to $110.00 and set an "outperform" rating on the stock in a research note on Friday, April 17th. President Capital lifted their price target on Netflix from $133.00 to $134.00 and gave the stock a "buy" rating in a research note on Tuesday, March 31st. Rothschild & Co Redburn set a $120.00 price target on Netflix in a research note on Wednesday, January 21st. Wolfe Research reissued an "outperform" rating and issued a $107.00 price target on shares of Netflix in a research note on Friday, April 17th. Finally, Morgan Stanley reissued an "overweight" rating on shares of Netflix in a research note on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and fourteen have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $114.53.

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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