Prospect Hill Management LLC Increases Stake in Netflix, Inc. $NFLX

Key Points

• Prospect Hill Management LLC increased its Netflix stake by 900% in Q4 to 61,910 shares (worth ~$5.81M), representing about 2.3% of its portfolio and its ninth-largest holding.
• Several major institutions—including Vanguard, Baillie Gifford, Sumitomo Mitsui and Nordea—also reported massive Q4 additions, leaving institutional ownership at ~80.93%.
• Netflix’s board approved a $25 billion share buyback that helped lift the stock, but weak Q2 guidance, subscriber-churn concerns and significant insider selling (~1.49M shares worth ~$136M) keep near-term volatility risks.

Prospect Hill Management LLC increased its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 900.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 61,910 shares of the Internet television network's stock after purchasing an additional 55,719 shares during the quarter. Netflix accounts for about 2.3% of Prospect Hill Management LLC's investment portfolio, making the stock its 9th largest holding. Prospect Hill Management LLC's holdings in Netflix were worth $5,805,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. Baillie Gifford & Co. lifted its stake in 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 last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in 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 last quarter. Nordea Investment Management AB lifted its stake in Netflix by 886.6% in the fourth quarter. Nordea Investment Management AB now owns 9,667,997 shares of the Internet television network's stock valued at $902,798,000 after buying an additional 8,688,113 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA lifted its stake in Netflix by 430.6% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 6,738,241 shares of the Internet television network's stock valued at $631,777,000 after buying an additional 5,468,262 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Board approved a $25 billion additional share repurchase authorization (no expiration), boosting capital returns and supporting the share price rally. Netflix announces $25 billion share buyback (Reuters)
• Positive Sentiment: Market reaction: the buyback and messaging drove pre-market gains and helped stem the post-earnings selloff. Netflix authorizes fresh $25B buyback (MSN)
• Positive Sentiment: Wall Street support: JPMorgan reaffirmed a Buy on NFLX, and Daiwa raised its price target, both reinforcing investor confidence after the drop. JPMorgan reaffirms Buy (AmericanBankingNews) Daiwa raises price target to $102 (MarketScreener)
• Positive Sentiment: Notable institutional interest — Cathie Wood continued buying shares, signaling conviction from some active growth managers. Cathie Wood keeps buying (Barchart)
• Neutral Sentiment: Industry M&A backdrop: Warner Bros. shareholders approved a large Paramount Skydance acquisition — consolidation could reshape content economics and competitive dynamics, with mixed implications for Netflix (it was the losing bidder). Warner Bros shareholders approve deal (Yahoo Finance)
• Neutral Sentiment: Strategic moves: reports Netflix is in talks to buy Los Angeles studio space — this would be a content-production play that supports long-term content pipeline but is not an immediate earnings driver. Netflix in talks to buy LA studio space (Yahoo Market Chatter)
• Neutral Sentiment: Governance item: Netflix’s board recommended “No” on two shareholder proposals tied to ideological content concerns — likely low short-term financial impact but could matter to activist investors. Board recommends No on proposals (Forbes)
• Negative Sentiment: Guidance and churn risk: management’s weak Q2 guidance after a Q1 beat signaled rising subscriber churn, which sparked the initial selloff and remains the primary near-term headwind for the stock. Buyback-and-chill strategy but guidance weak (The Daily Upside)
• Negative Sentiment: Analyst and market reaction: several pieces discuss the post-earnings selloff and questions about subscriber momentum and valuation — signaling continued volatility until membership trends stabilize. What is next after Q1 guidance selloff (Seeking Alpha)

Analyst Ratings Changes

A number of equities research analysts have issued reports on NFLX shares. Canaccord Genuity Group set a $125.00 target price on Netflix and gave the company a "buy" rating in a research note on Wednesday, January 21st. BMO Capital Markets cut their target price on Netflix from $143.00 to $135.00 and set an "outperform" rating on the stock in a research note on Wednesday, January 21st. Citigroup started coverage on Netflix in a research note on Thursday, April 16th. They issued a "market perform" rating on the stock. Bank of America cut their target price on Netflix from $149.00 to $125.00 and set a "buy" rating on the stock in a research note on Friday, March 6th. Finally, Erste Group Bank upgraded Netflix from a "hold" rating to a "buy" rating in a research note on Tuesday, March 24th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $114.53.

Insiders Place Their Bets

In other news, CEO Gregory K. Peters sold 105,781 shares of the firm's stock in a transaction on Thursday, January 29th. The stock was sold at an average price of $82.94, for a total transaction of $8,773,476.14. Following the transaction, the chief executive officer directly owned 122,140 shares of the company's stock, valued at approximately $10,130,291.60. This trade represents a 46.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider David A. Hyman sold 5,727 shares of the firm's stock in a transaction on Monday, February 9th. The shares were sold at an average price of $81.06, for a total value of $464,230.62. Following the transaction, the insider directly owned 316,100 shares in the company, valued at $25,623,066. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,487,794 shares of company stock valued at $136,255,772 over the last three months. 1.37% of the stock is currently owned by company insiders.

Netflix Price Performance

Shares of NFLX opened at $92.37 on Friday. The firm has a market capitalization of $388.94 billion, a price-to-earnings ratio of 29.83, a price-to-earnings-growth ratio of 1.20 and a beta of 1.67. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.19 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 stock's fifty day moving average is $93.60 and its 200-day moving average is $97.70.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The company had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company's quarterly revenue was up 16.2% compared to the same quarter last year. During the same period last year, the company earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities analysts anticipate that Netflix, Inc. will post 3.53 EPS for the current year.

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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