Netflix, Inc. $NFLX Shares Bought by HighPoint Advisor Group LLC

Key Points

• HighPoint Advisor Group LLC boosted its Netflix stake by 957.4% in the fourth quarter, ending with 128,198 shares valued at about $12.0 million.
• Netflix has recently been in the spotlight for raising prices on its ad-free standard plan, a move that could improve revenue per user and profitability.
• The company is also facing legal and sentiment headwinds, including a Texas lawsuit alleging improper data collection and addictive platform design, alongside recent insider selling by executives and directors.

HighPoint Advisor Group LLC grew its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 957.4% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 128,198 shares of the Internet television network's stock after buying an additional 116,074 shares during the period. HighPoint Advisor Group LLC's holdings in Netflix were worth $12,020,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Imprint Wealth LLC purchased a new stake in shares of Netflix in the 3rd quarter valued at approximately $25,000. Bare Financial Services Inc grew its stake in shares of Netflix by 93.3% in the 3rd quarter. Bare Financial Services Inc now owns 29 shares of the Internet television network's stock valued at $35,000 after buying an additional 14 shares during the period. Horizon Financial Services LLC grew its stake in shares of Netflix by 480.0% in the 3rd quarter. Horizon Financial Services LLC now owns 29 shares of the Internet television network's stock valued at $35,000 after buying an additional 24 shares during the period. Redmont Wealth Advisors LLC purchased a new stake in shares of Netflix in the 3rd quarter valued at approximately $36,000. Finally, Marquette Asset Management LLC purchased a new stake in shares of Netflix in the 3rd quarter valued at approximately $44,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix raised prices on its ad-free standard plan, which could lift average revenue per user and support profitability as streaming services push harder to monetize heavy viewing. With Netflix new ad-free standard plan at $20, streaming's tipping point into old TV is getting closer
• Positive Sentiment: Netflix continues to benefit from high-profile original content and promotional events, including “The Roast of Kevin Hart,” which helps keep the platform in the entertainment conversation. Tom Brady Hits On Kevin Hart's Wife During Netflix is a Joke Roast - TMZ
• Neutral Sentiment: Netflix was mentioned in broader media-industry coverage around TV upfronts and ad spending, but the article was more about sector trends than a company-specific catalyst. At TV upfronts, AI is in and corporate shuffles are reshaping the line-up
• Negative Sentiment: Texas Attorney General Ken Paxton filed a lawsuit accusing Netflix of spying on users, collecting data without consent, and designing its platform to be addictive, creating headline risk and potential legal costs. Netflix sued by Texas for allegedly spying on consumers
• Negative Sentiment: Another report highlighted alleged data collection of children without consent, reinforcing investor concerns about regulation and privacy-related liabilities. Texas Sues Netflix for Alleged Data Collection of Children Without Consent
• Negative Sentiment: Netflix also saw insider-selling coverage, with the CFO selling shares, which can add to bearish sentiment even if it is not necessarily a fundamental red flag. Insider Selling: Netflix NASDAQ: NFLX CFO Sells $823,054.35 in Stock

Netflix Stock Performance

Shares of NFLX stock opened at $85.45 on Tuesday. The firm's 50 day moving average price is $95.55 and its 200-day moving average price is $95.62. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. Netflix, Inc. has a one year low of $75.01 and a one year high of $134.12. The firm has a market cap of $359.81 billion, a P/E ratio of 27.60, a P/E/G ratio of 1.11 and a beta of 1.55.

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 for the quarter, topping the consensus estimate of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The firm had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the prior year, the firm earned $6.61 EPS. The firm's revenue for the quarter was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, equities research analysts predict that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Activity

In related news, CFO Spencer Adam Neumann sold 9,253 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the sale, the chief financial officer directly owned 73,787 shares of the company's stock, valued at $6,563,353.65. This represents a 11.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Reed Hastings sold 407,550 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the sale, the director directly owned 3,940 shares in the company, valued at approximately $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,422,769 shares of company stock worth $135,144,073 over the last 90 days. Company insiders own 1.37% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Bank of America dropped their price target on shares of Netflix from $149.00 to $125.00 and set a "buy" rating for the company in a research note on Friday, March 6th. Weiss Ratings raised shares of Netflix from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 4th. Barclays set a $110.00 price objective on shares of Netflix and gave the stock an "equal weight" rating in a report on Friday, April 17th. Citigroup initiated coverage on shares of Netflix in a report on Thursday, April 16th. They issued a "market perform" rating on the stock. Finally, Daiwa Securities Group upped their price objective on shares of Netflix from $97.00 to $102.00 and gave the stock an "outperform" rating in a report on Thursday, April 23rd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and fifteen have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus 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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