MKP Capital Management L.L.C. Takes $18.75 Million Position in Netflix, Inc. $NFLX

Key Points

• MKP Capital Management opened a new position in Netflix during the fourth quarter, buying 200,000 shares valued at about $18.75 million. The stake represents about 0.7% of MKP’s holdings and is its 18th largest position.
• Several Netflix insiders sold shares recently, including CFO Spencer Adam Neumann and CEO Theodore A. Sarandos. Over the last 90 days, insiders have sold 926,329 shares worth about $87.1 million.
• Netflix reported strong quarterly results, with earnings of $1.23 per share versus $0.76 expected and revenue of $12.25 billion, up 16.2% year over year. Analysts remain generally positive, with a consensus rating of Moderate Buy and an average price target of $114.82.

MKP Capital Management L.L.C. acquired a new stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 200,000 shares of the Internet television network's stock, valued at approximately $18,752,000. Netflix comprises approximately 0.7% of MKP Capital Management L.L.C.'s holdings, making the stock its 18th biggest position.

A number of other hedge funds have also recently made changes to their positions in NFLX. Apriem Advisors boosted its holdings in Netflix by 0.6% during the third quarter. Apriem Advisors now owns 1,567 shares of the Internet television network's stock worth $1,879,000 after purchasing an additional 9 shares during the last quarter. Tortoise Investment Management LLC boosted its holdings in Netflix by 10.8% during the third quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network's stock worth $110,000 after purchasing an additional 9 shares during the last quarter. Brass Tax Wealth Management Inc. boosted its holdings in Netflix by 3.2% during the third quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network's stock worth $345,000 after purchasing an additional 9 shares during the last quarter. Pacific Sun Financial Corp boosted its holdings in Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock worth $688,000 after purchasing an additional 9 shares during the last quarter. Finally, Black Diamond Financial LLC grew its stake in Netflix by 5.2% in the 3rd quarter. Black Diamond Financial LLC now owns 202 shares of the Internet television network's stock valued at $242,000 after purchasing an additional 10 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. This represents a 11.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the sale, the chief executive officer owned 284,804 shares in the company, valued at $25,054,207.88. This represents a 8.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 926,329 shares of company stock worth $87,071,177. Company insiders own 1.24% of the company's stock.

Netflix Stock Performance

Shares of NFLX stock opened at $85.85 on Tuesday. The stock has a market capitalization of $361.50 billion, a P/E ratio of 27.73, a PEG ratio of 1.09 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm's 50 day moving average is $93.00 and its 200 day moving average is $93.09. Netflix, Inc. has a 12 month low of $75.01 and a 12 month high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. During the same period in the prior year, the company posted $6.61 EPS. Netflix'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. On average, sell-side analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

Wall Street Analyst Weigh In

NFLX has been the subject of several research reports. Seaport Research Partners increased their price target on shares of Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a research report on Friday, April 17th. The Goldman Sachs Group upgraded shares of Netflix from a "neutral" rating to a "buy" rating in a research note on Monday, April 13th. Weiss Ratings upgraded shares of Netflix from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 4th. HSBC boosted their target price on shares of Netflix from $106.00 to $114.00 and gave the company a "buy" rating in a research note on Friday, April 10th. Finally, Citigroup assumed coverage on shares of Netflix in a research note on Thursday, April 16th. They issued a "market perform" rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $114.82.

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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