Luma Capital S.A. SPF Takes Position in Netflix, Inc. $NFLX

Key Points

• Luma Capital purchased 72,680 shares of Netflix (~$6.81M) in Q4, making Netflix about 6.4% of the fund's holdings and its 7th-largest position.
• Multiple analyst upgrades, rising institutional buying and traction in Netflix’s ad-supported tier are boosting bullish sentiment and expectations for improved margins and buybacks ahead of the Q1 earnings catalyst on April 16.
• Offsetting that optimism, insiders have sold heavily (1.543M shares worth ~$141M in the last 90 days, including CEO Gregory Peters), and analysts flag ~$7.4B of stock-option obligations and post-earnings volatility as short-term risks.

Luma Capital S.A. SPF purchased a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 72,680 shares of the Internet television network's stock, valued at approximately $6,814,000. Netflix accounts for about 6.4% of Luma Capital S.A. SPF's holdings, making the stock its 7th largest position.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. First Financial Corp IN grew its holdings in Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock worth $25,000 after acquiring an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. raised its holdings in shares of Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 239 shares in the last quarter. Imprint Wealth LLC purchased a new stake in shares of Netflix in the 3rd quarter worth approximately $25,000. Retirement Wealth Solutions LLC purchased a new stake in shares of Netflix in the 3rd quarter worth approximately $28,000. Finally, MB Levis & Associates LLC boosted its stake in shares of Netflix by 177.8% during the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network's stock valued at $28,000 after purchasing an additional 192 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Multiple analyst upgrades and price-target raises lift sentiment — Wedbush bumped its target and kept an Outperform rating, Morgan Stanley raised its target and maintained Overweight, and HSBC lifted its target while keeping a Buy. These moves point to growing confidence in Netflix’s revenue and margin outlook. Wedbush price-target raise
• Positive Sentiment: Ad-supported tier is scaling and lowering churn, which analysts say boosts advertiser confidence and monetization — a key driver for revenue upside and margin expansion. Ad-tier traction
• Positive Sentiment: Analysts expect stronger operating margins and more buybacks — one analyst notes Netflix could lift its 2026 operating-margin guide toward ~32% while sustaining mid-teens revenue growth, supporting higher EPS and potential share repurchases. Margin/ buyback outlook
• Positive Sentiment: Institutional buying: several high-profile funds increased Netflix positions after the Warner Bros. deal fell through, signaling conviction from big investors. That institutional demand is propping up the stock into earnings. Hedge funds adding
• Neutral Sentiment: Upcoming catalyst: Q1 earnings on April 16 is the immediate event — positive prints on ad revenue, pricing, or margins could extend the rally; a miss could reverse gains. Earnings catalyst
• Neutral Sentiment: Media/market commentary highlights Netflix’s steady revenue growth versus peers and frames the stock as a durable streaming leader; useful context but not immediate price drivers. Industry comparisons
• Negative Sentiment: Balance-sheet nuance: coverage points to roughly $7.4B in stock-option obligations that can act like hidden leverage — a reminder for investors watching capital allocation and net-debt metrics. Hidden option liability
• Negative Sentiment: Post-earnings volatility risk — options-market patterns suggest a “sawtooth” and potential for a sharp move after the print; that raises short-term risk even if fundamentals look sound. Options volatility risk

Insider Buying and Selling

In other news, CEO Gregory K. Peters sold 105,781 shares of the stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $82.94, for a total value of $8,773,476.14. Following the completion of the sale, the chief executive officer owned 122,140 shares of the company's stock, valued at $10,130,291.60. This represents a 46.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider David A. Hyman sold 23,439 shares of the business's stock in a transaction that occurred on Friday, January 16th. The shares were sold at an average price of $88.11, for a total value of $2,065,210.29. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $27,851,571. The trade was a 6.90% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,543,023 shares of company stock worth $141,145,842 over the last ninety days. 1.37% of the stock is currently owned by insiders.

Netflix Price Performance

NASDAQ:NFLX opened at $103.02 on Friday. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. Netflix, Inc. has a 52 week low of $75.01 and a 52 week high of $134.12. The stock's 50-day moving average price is $89.88 and its 200-day moving average price is $99.14. The stock has a market capitalization of $434.96 billion, a PE ratio of 40.77, a price-to-earnings-growth ratio of 1.56 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.55 by $0.01. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The firm had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same period in the previous year, the company posted $0.43 earnings per share. The business's revenue was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, equities analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of analyst reports. TD Cowen decreased their target price on shares of Netflix from $115.00 to $112.00 and set a "buy" rating for the company in a research report on Wednesday, January 21st. Huber Research raised shares of Netflix from a "strong sell" rating to a "strong-buy" rating in a report on Friday, February 27th. Moffett Nathanson reduced their price target on Netflix from $140.00 to $115.00 and set a "buy" rating on the stock in a research report on Wednesday, January 21st. Rosenblatt Securities increased their price objective on Netflix from $95.00 to $96.00 and gave the company a "neutral" rating in a report on Monday, April 6th. Finally, Loop Capital set a $104.00 price objective on Netflix in a research report on Tuesday, January 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $115.50.

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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