Netflix, Inc. $NFLX Shares Bought by Advisory Alpha LLC

Key Points

• Advisory Alpha LLC dramatically increased its Netflix stake in the fourth quarter, boosting holdings by 1,064.2% to 33,495 shares valued at about $3.14 million.
• Netflix reported better-than-expected quarterly results, with EPS of $1.23 versus $0.76 expected and revenue of $12.25 billion, up 16.2% year over year.
• Recent news remains mixed: Netflix’s ad-supported tier surpassed 250 million monthly viewers and it deepened a live-streaming partnership with iHeartMedia, but new Canadian streaming rules could raise compliance costs.

Advisory Alpha LLC grew its holdings in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 1,064.2% in the fourth quarter, according to its most recent filing with the SEC. The firm owned 33,495 shares of the Internet television network's stock after acquiring an additional 30,618 shares during the quarter. Advisory Alpha LLC's holdings in Netflix were worth $3,141,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in shares of Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the period. Baillie Gifford & Co. lifted its holdings in shares of Netflix by 912.3% in the fourth quarter. Baillie Gifford & Co. now owns 36,940,035 shares of the Internet television network's stock valued at $3,463,498,000 after buying an additional 33,290,988 shares during the period. Jennison Associates LLC lifted its holdings in shares of Netflix by 639.9% in the fourth quarter. Jennison Associates LLC now owns 34,871,951 shares of the Internet television network's stock valued at $3,269,594,000 after buying an additional 30,158,900 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Netflix by 891.3% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 12,099,908 shares of the Internet television network's stock valued at $1,134,487,000 after buying an additional 10,879,276 shares during the period. Finally, Principal Financial Group Inc. raised its position in shares of Netflix by 850.7% during the fourth quarter. Principal Financial Group Inc. now owns 10,858,157 shares of the Internet television network's stock worth $1,018,062,000 after purchasing an additional 9,716,017 shares during the period. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Stock Down 0.8%

Shares of Netflix stock opened at $88.60 on Friday. The stock has a 50-day moving average price of $93.88 and a 200 day moving average price of $94.06. The company has a market cap of $373.08 billion, a P/E ratio of 28.62, a P/E/G ratio of 1.13 and a beta of 1.55. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. Netflix, Inc. has a 1 year low of $75.01 and a 1 year high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business's revenue for the quarter was up 16.2% on a year-over-year basis. During the same period in the prior year, the business earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, analysts expect that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Bank of America reaffirmed a "buy" rating and set a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Rosenblatt Securities cut their target price on Netflix from $96.00 to $95.00 and set a "neutral" rating on the stock in a research report on Friday, April 17th. DZ Bank reaffirmed a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Citic Securities boosted their target price on Netflix from $95.00 to $107.00 and gave the stock a "hold" rating in a research report on Monday, April 27th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Netflix in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and a consensus target price of $114.82.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s ad-supported tier has surpassed 250 million monthly viewers, reinforcing the company’s advertising growth story and supporting the bull case for future revenue expansion. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Netflix is deepening its partnership with iHeartMedia by streaming “The Breakfast Club” live daily, a sign it is pushing further into live and podcast-style programming that could broaden engagement and ad inventory. iHeartMedia and Netflix Deepen Partnership with Daily Live Video Stream of The Breakfast Club
• Positive Sentiment: CNBC highlighted Netflix as a “final trade,” suggesting some short-term trading interest from market watchers. IBM, ServiceNow, Netflix And A Basic Materials Stock: CNBC's 'Final Trades'
• Neutral Sentiment: BetterInvesting questioned whether Netflix is fairly valued after its recent report, which keeps the stock in “show-me” territory even after strong earnings and revenue growth. BetterInvesting™ Magazine Update on Netflix NASDAQ: NFLX and ExlService Holdings Inc. NASDAQ: EXLS
• Neutral Sentiment: Analyst commentary noted Netflix as a possible suitor if IMAX is sold, but this is speculative and not a confirmed deal driver. IMAX Potential Suitors Include Netflix, Apple, Wedbush Says
• Negative Sentiment: Canada’s new streaming rules would require Netflix to contribute a larger share of domestic revenue to Canadian content, raising compliance costs for the business. Canada Raises Streaming Content Requirement to 15% for Netflix, Disney, Amazon
• Negative Sentiment: Separate reporting also flagged higher costs from the same Canadian policy change, adding a modest regulatory headwind for Netflix and other streamers. Netflix, Spotify to face higher costs as CRTC changes rules

Insider Buying and Selling

In other Netflix news, CFO Spencer Adam Neumann sold 57,260 shares of the company's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $95.50, for a total value of $5,468,330.00. Following the transaction, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $7,046,658.50. This represents a 43.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Reed Hastings sold 420,550 shares of the company's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total value of $40,158,319.50. Following the completion of the transaction, the director directly owned 3,940 shares in the company, valued at approximately $376,230.60. The trade was a 99.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 1,422,769 shares of company stock worth $135,144,073. Insiders own 1.24% of the company's stock.

Netflix Company 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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