Legato Capital Management LLC Has $6.43 Million Position in Netflix, Inc. $NFLX

Key Points

• Legato Capital Management increased its Netflix stake by 814.4% in the fourth quarter, ending with 68,582 shares valued at about $6.43 million.
• Netflix continues to attract institutional interest overall, with more than 80% of shares owned by institutions and hedge funds, even as several other funds also sharply boosted holdings.
• Netflix reported solid recent results, beating earnings and revenue expectations, while analysts maintain a Moderate Buy consensus and average price target of $114.82.

Legato Capital Management LLC raised its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 814.4% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 68,582 shares of the Internet television network's stock after buying an additional 61,082 shares during the quarter. Netflix comprises 0.6% of Legato Capital Management LLC's portfolio, making the stock its 23rd biggest position. Legato Capital Management LLC's holdings in Netflix were worth $6,430,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently modified their holdings of the stock. Vanguard Group Inc. grew its position in shares of Netflix by 0.4% in 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 purchasing an additional 142,238 shares during the period. Checchi Capital Advisers LLC grew its position in shares of Netflix by 875.7% in the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network's stock valued at $2,920,000 after purchasing an additional 27,951 shares during the period. Contravisory Investment Management Inc. grew its position in shares of Netflix by 837.2% in the 4th quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network's stock valued at $10,443,000 after purchasing an additional 99,496 shares during the period. BNC Wealth Management LLC grew its position in shares of Netflix by 991.3% in the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network's stock valued at $3,866,000 after purchasing an additional 37,451 shares during the period. Finally, Crew Capital Management Ltd grew its position in shares of Netflix by 1,021.9% in the 4th quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network's stock valued at $847,000 after purchasing an additional 8,226 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Netflix

In other news, 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 transaction of $37,955,131.50. Following the sale, the director owned 3,940 shares in the company, valued at $366,932.20. This represents a 99.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total value of $2,402,636.64. Following the sale, the chief executive officer owned 284,804 shares in the company, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 1,422,769 shares of company stock worth $135,144,073. Insiders own 1.24% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Citizens Jmp reiterated a "market perform" rating on shares of Netflix in a research report on Wednesday, April 15th. Phillip Securities boosted their price objective on Netflix from $100.00 to $110.00 in a research report on Monday, April 20th. Daiwa Securities Group boosted their price objective on Netflix from $97.00 to $102.00 and gave the company an "outperform" rating in a research report on Thursday, April 23rd. Robert W. Baird decreased their price objective on Netflix from $150.00 to $120.00 and set an "outperform" rating for the company in a research report on Friday, January 23rd. Finally, Piper Sandler reiterated an "overweight" rating and issued a $115.00 price objective (up from $103.00) on shares of Netflix in a research report on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $114.82.

Key Netflix News

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

Netflix Trading Down 0.8%

Shares of Netflix stock opened at $88.60 on Friday. Netflix, Inc. has a 12-month low of $75.01 and a 12-month high of $134.12. The stock has a market cap of $373.08 billion, a P/E ratio of 28.62, a P/E/G ratio of 1.13 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. The business's 50 day moving average is $93.88 and its 200-day moving average is $94.06.

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