Netflix, Inc. $NFLX Position Increased by Capital World Investors

Key Points

• Capital World Investors massively increased its Netflix stake by 859.1% in the fourth quarter, ending with 89.3 million shares worth about $8.38 billion and making NFLX its 13th-largest holding.
• Netflix reported strong quarterly results, with earnings per share of $1.23 beating estimates and revenue of $12.25 billion topping expectations, while revenue rose 16.2% year over year.
• The stock has also drawn mixed signals: analysts remain broadly positive with a Moderate Buy consensus, but insiders have sold shares recently, including director Reed Hastings and CEO Gregory K. Peters.

Capital World Investors raised its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 859.1% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 89,341,444 shares of the Internet television network's stock after purchasing an additional 80,025,890 shares during the period. Netflix comprises about 1.1% of Capital World Investors' portfolio, making the stock its 13th largest holding. Capital World Investors owned approximately 2.12% of Netflix worth $8,376,656,000 as of its most recent SEC filing.

Several other institutional investors have also recently added to or reduced their stakes in the business. First Financial Corp IN boosted its holdings in shares of Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 243 shares during the period. DiNuzzo Private Wealth Inc. boosted its holdings in shares of Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 239 shares during the period. Turning Point Benefit Group Inc. boosted its holdings in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 268 shares during the period. Imprint Wealth LLC acquired a new position in shares of Netflix during the third quarter valued at $25,000. Finally, MB Levis & Associates LLC boosted its holdings 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 acquiring an additional 192 shares during the period. Institutional investors own 80.93% of the company's stock.

Netflix Stock Performance

NFLX stock opened at $82.18 on Friday. The company has a market capitalization of $346.04 billion, a P/E ratio of 26.54, a PEG ratio of 1.04 and a beta of 1.50. The company has a 50-day simple moving average of $92.21 and a 200 day simple moving average of $92.07. Netflix, Inc. has a fifty-two week low of $75.01 and a fifty-two week high of $134.12. 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 (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Sell-side analysts predict that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is getting a boost from reports that Canada reversed a requirement that U.S. streaming services contribute part of local revenue to Canadian content, removing a potential cost/regulatory headwind. Netflix Stock Rises After Eight-Day Losing Streak. What’s Fueling the Move.
• Positive Sentiment: Netflix is expanding AI-driven viewing tools and content discovery features, including more personalized recommendations and a voice-based interface, which could improve engagement and retention. Netflix Bets On AI Tools As Stock Trades Below Analyst Targets
• Positive Sentiment: Bernstein said Netflix’s core business remains strong, reinforcing the view that the company’s underlying growth engine is intact despite recent weakness in the stock. “Don’t Ignore This,” Bernstein Analyst Says Netflix’s (NFLX) Core Engine Remains Strong
• Positive Sentiment: Wall Street commentary remains broadly optimistic, with analysts keeping a constructive view on Netflix after its strong earnings and revenue beat last quarter. Wall Street Bulls Look Optimistic About Netflix (NFLX): Should You Buy?

Insiders Place Their Bets

In other Netflix news, Director Reed Hastings sold 386,700 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director directly owned 3,940 shares in the company, valued at approximately $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the completion of the sale, the chief executive officer owned 120,931 shares in the company, valued at approximately $10,725,370.39. This trade represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,313,029 shares of company stock valued at $120,315,776. Corporate insiders own 1.24% of the company's stock.

Analyst Upgrades and Downgrades

NFLX has been the subject of several analyst reports. Oppenheimer set a $120.00 price target on shares of Netflix and gave the company an "outperform" rating in a report on Friday, April 17th. Guggenheim reissued a "buy" rating and set a $120.00 price target on shares of Netflix in a report on Friday, May 15th. Citizens Jmp reissued a "market perform" rating on shares of Netflix in a report on Wednesday, April 15th. Bank of America reissued a "buy" rating and set a $125.00 price target on shares of Netflix in a report on Monday, May 18th. Finally, Barclays set a $110.00 price target on shares of Netflix and gave the company an "equal weight" rating in a report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price 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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