Netflix, Inc. $NFLX Shares Acquired by AXQ Capital LP

Key Points

• AXQ Capital LP dramatically increased its Netflix stake by 2,663.2% in the fourth quarter, ending with 21,636 shares valued at about $2.03 million.
• Insider selling was heavy over the last quarter, including CEO Theodore Sarandos and director Reed Hastings, with insiders selling a combined 926,329 shares worth about $87.1 million.
• Netflix reported a strong quarter, with EPS of $1.23 beating estimates and revenue of $12.25 billion topping forecasts; analysts currently rate the stock a Moderate Buy with an average target price of $114.82.

AXQ Capital LP lifted its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 2,663.2% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 21,636 shares of the Internet television network's stock after purchasing an additional 20,853 shares during the quarter. Netflix comprises about 0.5% of AXQ Capital LP's holdings, making the stock its 26th biggest holding. AXQ Capital LP's holdings in Netflix were worth $2,029,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. Apriem Advisors raised its holdings in Netflix by 0.6% in the third quarter. Apriem Advisors now owns 1,567 shares of the Internet television network's stock valued at $1,879,000 after acquiring an additional 9 shares in the last quarter. Tortoise Investment Management LLC raised its holdings in Netflix by 10.8% in the third quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network's stock valued at $110,000 after acquiring an additional 9 shares in the last quarter. Brass Tax Wealth Management Inc. raised its holdings in Netflix by 3.2% in the third quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network's stock valued at $345,000 after acquiring an additional 9 shares in the last quarter. Pacific Sun Financial Corp raised its holdings in Netflix by 1.6% in the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock valued at $688,000 after acquiring an additional 9 shares in the last quarter. Finally, Black Diamond Financial LLC raised its holdings in Netflix by 5.2% in the third quarter. Black Diamond Financial LLC now owns 202 shares of the Internet television network's stock valued at $242,000 after acquiring an additional 10 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Insider Transactions at Netflix

In related news, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total value of $2,402,636.64. Following the transaction, the chief executive officer directly owned 284,804 shares in the company, valued at $25,054,207.88. This trade represents a 8.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Reed Hastings sold 420,550 shares of Netflix stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at approximately $376,230.60. This trade represents a 99.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 926,329 shares of company stock worth $87,071,177 over the last quarter. 1.24% of the stock is currently owned by corporate insiders.

Netflix Stock Performance

Shares of NFLX opened at $85.85 on Tuesday. 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 has a market cap of $361.50 billion, a PE ratio of 27.73, a price-to-earnings-growth ratio of 1.09 and a beta of 1.50. The company's 50 day simple moving average is $93.00 and its 200-day simple 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 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. The business had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company's revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period last year, the firm posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities analysts predict that Netflix, Inc. will post 3.6 EPS for the current year.

Analyst Ratings Changes

Several analysts recently weighed in on NFLX shares. Seaport Research Partners raised their target price on shares of Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a report on Friday, April 17th. Huber Research raised shares of Netflix from a "strong sell" rating to a "strong-buy" rating in a report on Friday, February 27th. Erste Group Bank cut shares of Netflix from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Bank of America reissued a "buy" rating and set a $125.00 price objective on shares of Netflix in a report on Monday, May 18th. Finally, HSBC raised their price objective on shares of Netflix from $106.00 to $114.00 and gave the stock a "buy" rating in a report on Friday, April 10th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus 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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