HighTower Advisors LLC Increases Stake in Netflix, Inc. $NFLX

Key Points

• HighTower Advisors LLC dramatically increased its Netflix stake by 912.5% in the fourth quarter, ending with 1,758,882 shares valued at about $164.9 million.
• Netflix’s latest earnings topped expectations, with EPS of $1.23 versus the $0.76 consensus and revenue of $12.25 billion, up 16.2% year over year.
• Wall Street sentiment remains broadly positive: several analysts raised ratings or price targets, and the stock currently carries a Moderate Buy consensus with an average target price of $114.82.

HighTower Advisors LLC boosted its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 912.5% during the 4th quarter, according to its most recent 13F filing with the SEC. The fund owned 1,758,882 shares of the Internet television network's stock after purchasing an additional 1,585,169 shares during the quarter. HighTower Advisors LLC's holdings in Netflix were worth $164,913,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. Auxano Advisors LLC lifted its stake in Netflix by 933.2% during the 4th quarter. Auxano Advisors LLC now owns 6,168 shares of the Internet television network's stock valued at $578,000 after acquiring an additional 5,571 shares during the period. Envestnet Portfolio Solutions Inc. raised its stake in Netflix by 945.2% during the 4th quarter. Envestnet Portfolio Solutions Inc. now owns 439,404 shares of the Internet television network's stock worth $41,194,000 after acquiring an additional 397,363 shares during the period. Payden & Rygel raised its stake in Netflix by 530.3% during the 4th quarter. Payden & Rygel now owns 13,300 shares of the Internet television network's stock worth $1,247,000 after acquiring an additional 11,190 shares during the period. Gambit Capital Management LLC bought a new stake in Netflix during the 4th quarter worth approximately $440,000. Finally, Verde Capital Management raised its stake in Netflix by 1,036.8% during the 4th quarter. Verde Capital Management now owns 43,618 shares of the Internet television network's stock worth $4,090,000 after acquiring an additional 39,781 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Stock Down 0.4%

NFLX stock opened at $89.33 on Wednesday. The firm has a 50 day moving average of $94.36 and a 200 day moving average of $94.50. The stock has a market capitalization of $376.15 billion, a PE ratio of 28.85, a price-to-earnings-growth ratio of 1.14 and a beta of 1.55. 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, Inc. has a 52 week low of $75.01 and a 52 week high of $134.12.

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Freedom Capital raised shares of Netflix from a "hold" rating to a "strong-buy" rating in a report on Tuesday, January 27th. Huber Research raised shares of Netflix from a "strong sell" rating to a "strong-buy" rating in a report on Friday, February 27th. Seaport Research Partners raised their price target on Netflix from $115.00 to $119.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Wedbush reiterated an "outperform" rating and set a $118.00 target price on shares of Netflix in a research report on Thursday, April 16th. Finally, The Goldman Sachs Group upgraded Netflix from a "neutral" rating to a "buy" rating in a research report on Monday, April 13th. Two equities 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 company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $114.82.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bank of America reiterated a Buy rating and a $125 price target, citing Netflix’s advertising business, expanding live sports strategy, and long-term subscriber growth potential. Article Title
• Positive Sentiment: Analysts are becoming more constructive after Netflix’s advertiser presentation, suggesting the company’s ad tier is gaining credibility with Wall Street. Article Title
• Positive Sentiment: Omdia projected connected TV advertising revenue will nearly double by 2030, with Amazon, Netflix, and Google expected to capture a large share, reinforcing the long-term upside in Netflix’s ad business. Article Title
• Positive Sentiment: Netflix is expanding further into consumer products, including candy and toys, which could create additional brand-monetization opportunities beyond streaming. Article Title
• Neutral Sentiment: Several commentary pieces focused on whether Netflix is now “cheap” relative to its history, but these were largely valuation debates rather than fresh fundamental catalysts. Article Title
• Neutral Sentiment: Other articles highlighted long-term upside targets and comparisons to prior performance, but they mainly echoed existing bullish sentiment instead of adding new information. Article Title
• Negative Sentiment: Netflix remains below its 50-day and 200-day moving averages and has lagged the broader market over the past year, showing that investors still have concerns about growth durability and near-term execution. Article Title
• Negative Sentiment: Some coverage noted recent pullbacks tied to weaker guidance and investor skepticism, which continues to weigh on the stock despite solid underlying fundamentals. Article Title

Insider Transactions at Netflix

In other Netflix news, insider David A. Hyman sold 5,722 shares of the company's stock in a transaction that occurred 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 owned 316,100 shares in the company, valued at approximately $27,842,088. This represents a 1.78% decrease in their position. The transaction was disclosed in a document filed 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 407,550 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director owned 3,940 shares in the company, valued at approximately $366,932.20. This represents a 99.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,422,769 shares of company stock valued at $135,144,073 over the last quarter. Company insiders own 1.24% of the company's stock.

About Netflix

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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