Merit Financial Group LLC Acquires 144,544 Shares of Netflix, Inc. $NFLX

Key Points

• Merit Financial Group LLC bought an additional 144,544 shares of Netflix in Q4, increasing its stake to 161,613 shares worth roughly $15.15 million.
• Netflix beat Q1 expectations (EPS $1.23; revenue $12.25B) but gave softer Q2 guidance and founder Reed Hastings said he will not stand for re‑election, a combination that helped drive the stock down about 9.7%.
• Several large institutions massively increased Netflix positions in Q4 (e.g., Baillie Gifford, Sumitomo Mitsui, Nordea), leaving institutional ownership at 80.93%, while insiders sold roughly 1.49 million shares over the past three months.

Merit Financial Group LLC boosted its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 846.8% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 161,613 shares of the Internet television network's stock after purchasing an additional 144,544 shares during the quarter. Merit Financial Group LLC's holdings in Netflix were worth $15,153,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in NFLX. Baillie Gifford & Co. boosted its stake in Netflix by 912.3% during the 4th quarter. Baillie Gifford & Co. now owns 36,940,035 shares of the Internet television network's stock valued at $3,463,498,000 after purchasing an additional 33,290,988 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Netflix by 891.3% in the 4th 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 during the period. Nordea Investment Management AB lifted its position in shares of Netflix by 886.6% in the 4th 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 during the period. Assenagon Asset Management S.A. lifted its position in shares of Netflix by 983.1% in the 4th 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 during the period. Finally, Massachusetts Financial Services Co. MA lifted its position in shares of Netflix by 430.6% in the 4th 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 during the period. Institutional investors own 80.93% of the company's stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q1 results beat expectations — revenue of $12.25B and GAAP EPS of $1.23 topped consensus, driven by subscription pricing, ad revenue growth and margin expansion; these fundamentals underpin many analyst “buy the dip” calls. Q1 results detail
• Positive Sentiment: Longer‑term growth levers remain: management emphasized live sports discussions (NFL interest) and continued ad‑tier expansion; analysts who stayed bullish point to strong cash generation and ad upside. Live sports / NFL rights
• Neutral Sentiment: Product/tech roadmap: Netflix plans a TikTok‑style vertical feed and broader AI use for recommendations — positive for engagement but not an immediate revenue catalyst. TechCrunch: vertical feed
• Negative Sentiment: Q2 guidance disappointed — the company issued Q2 EPS/revenue guidance below consensus (management cited slower near‑term growth and margin pressure), which shifted focus from the quarter to the outlook and trimmed near‑term expectations. Reuters: downbeat Q2 forecast
• Negative Sentiment: Leadership change spooked the market — Reed Hastings announced he will not stand for re‑election to the board, prompting concern about governance continuity amid a strategic pivot after the failed Warner Bros. bid. That exit amplified the selloff. Deadline: Hastings exit
• Negative Sentiment: Analyst reaction and price‑target moves were mixed-to-negative — several firms trimmed targets or moved to neutral/hold citing valuation and near‑term growth deceleration, increasing downward pressure. Invezz: analyst reactions

Insider Activity

In related news, CFO Spencer Adam Neumann sold 28,630 shares of the firm's stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $98.00, for a total transaction of $2,805,740.00. Following the completion of the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $7,231,126. This trade represents a 27.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Cletus R. Willems sold 3,136 shares of the firm's stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $82.67, for a total value of $259,253.12. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 1,487,794 shares of company stock worth $136,255,772. 1.37% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Seaport Research Partners raised their price objective on Netflix from $115.00 to $119.00 and gave the stock a "buy" rating in a research report on Friday. William Blair reiterated an "outperform" rating on shares of Netflix in a research report on Wednesday, January 21st. Loop Capital set a $104.00 price objective on Netflix in a research report on Tuesday, January 27th. Royal Bank Of Canada reiterated a "hold" rating on shares of Netflix in a research report on Wednesday, January 21st. Finally, Wedbush reissued an "outperform" rating and issued a $118.00 target price on shares of Netflix in a report on Thursday. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and fourteen have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $114.58.

Netflix Trading Down 9.7%

Shares of NFLX opened at $97.31 on Friday. Netflix, Inc. has a 1 year low of $75.01 and a 1 year high of $134.12. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.51. The stock has a 50 day simple moving average of $92.20 and a 200-day simple moving average of $98.55. The stock has a market cap of $410.86 billion, a PE ratio of 31.43, a PEG ratio of 1.60 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results 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 43.01% and a net margin of 28.52%.The business had revenue of $12.25 billion during the quarter, compared to analysts' expectations of $12.17 billion. During the same period in the prior year, the firm posted $6.61 EPS. Netflix's quarterly 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. On average, sell-side analysts predict that Netflix, Inc. will post 24.58 EPS 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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