Netflix, Inc. $NFLX Shares Sold by Main Street Research LLC

Key Points

• Main Street Research LLC cut its Netflix stake by 75.3% in the fourth quarter, selling 32,301 shares and leaving it with 10,621 shares valued at about $996,000.
• Netflix continues to draw mixed investor and analyst attention: institutional ownership remains high at 80.93%, while analysts still rate the stock a Moderate Buy with an average target price of $114.82.
• Fundamentally, Netflix posted better-than-expected Q1 results with EPS of $1.23 and revenue of $12.25 billion, but faces a new regulatory cost headwind in Canada from stricter streaming contribution rules.

Main Street Research LLC lowered its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 75.3% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,621 shares of the Internet television network's stock after selling 32,301 shares during the quarter. Main Street Research LLC's holdings in Netflix were worth $996,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently made changes to their positions in the company. Brighton Jones LLC increased its stake in shares of Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after acquiring an additional 257 shares during the period. Revolve Wealth Partners LLC increased its stake in shares of Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after acquiring an additional 144 shares during the period. Sivia Capital Partners LLC increased its stake in shares of Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after acquiring an additional 246 shares during the period. Strategic Investment Advisors MI increased its stake in shares of Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after acquiring an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. increased its stake in shares of Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after acquiring an additional 228 shares during the period. Institutional investors and hedge funds own 80.93% of the company's stock.

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 Transactions at Netflix

In related news, CFO Spencer Adam Neumann sold 57,260 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $95.50, for a total value of $5,468,330.00. Following the completion of the transaction, the chief financial officer owned 73,787 shares of the company's stock, valued at approximately $7,046,658.50. This trade represents a 43.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider David A. Hyman sold 5,722 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the transaction, the insider directly owned 316,100 shares of the company's stock, valued at $27,842,088. This represents a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 1,422,769 shares of company stock valued at $135,144,073 in the last 90 days. 1.24% of the stock is owned by corporate insiders.

Netflix Stock Performance

Netflix stock opened at $88.60 on Monday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The firm has a market cap of $373.08 billion, a price-to-earnings ratio of 28.62, a price-to-earnings-growth ratio of 1.13 and a beta of 1.55. Netflix, Inc. has a 1 year low of $75.01 and a 1 year high of $134.12. The firm's 50 day moving average price is $93.88 and its two-hundred day moving average price is $93.93.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results 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 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 firm's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, research analysts predict that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Sanford C. Bernstein reiterated a "buy" rating on shares of Netflix in a research note on Thursday, May 14th. Wells Fargo & Company assumed coverage on shares of Netflix in a research note on Monday, March 9th. They set an "equal weight" rating and a $105.00 price objective on the stock. JPMorgan Chase & Co. reiterated a "buy" rating on shares of Netflix in a research note on Wednesday, April 22nd. Bank of America reiterated a "buy" rating and set a $125.00 price objective on shares of Netflix in a research note on Monday, May 18th. Finally, President Capital raised their price objective on shares of Netflix from $133.00 to $134.00 and gave the company a "buy" rating in a research note on Tuesday, March 31st. Two analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have given a Hold rating to the stock. According to MarketBeat, Netflix presently has a consensus rating of "Moderate Buy" and an average target price of $114.82.

Netflix 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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