Prosperitas Financial LLC Raises Position in Netflix, Inc. $NFLX

Key Points

• Prosperitas Financial LLC sharply increased its Netflix stake by 958.9% in the fourth quarter, buying 52,440 additional shares and bringing its total to 57,909 shares worth about $5.43 million.
• Netflix had a strong recent earnings report, beating estimates with $1.23 EPS and $12.25 billion in revenue, while revenue rose 16.2% year over year.
• Despite the solid results, Netflix is facing fresh legal and regulatory risk after Texas sued the company over alleged spying and improper data collection, including claims involving children’s data.

Prosperitas Financial LLC grew its position in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 958.9% in the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 57,909 shares of the Internet television network's stock after buying an additional 52,440 shares during the period. Netflix makes up about 2.1% of Prosperitas Financial LLC's investment portfolio, making the stock its 16th largest holding. Prosperitas Financial LLC's holdings in Netflix were worth $5,430,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of NFLX. First Financial Corp IN raised its holdings in Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock worth $25,000 after buying an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. raised its holdings in Netflix by 885.2% in the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock worth $25,000 after buying an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. raised its holdings in Netflix by 13,400.0% in the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock worth $25,000 after buying an additional 268 shares during the last quarter. Imprint Wealth LLC purchased a new position in Netflix in the third quarter worth about $25,000. Finally, MB Levis & Associates LLC grew its stake in shares of Netflix by 177.8% in the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network's stock worth $28,000 after acquiring an additional 192 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

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 NASDAQ NFLX opened at $85.45 on Tuesday. The firm has a 50 day moving average of $95.55 and a 200 day moving average of $95.62. 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 capitalization of $359.81 billion, a price-to-earnings ratio of 27.60, a price-to-earnings-growth ratio of 1.11 and a beta of 1.55. 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, beating the consensus estimate of $0.76 by $0.47. The company had revenue of $12.25 billion during 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 period 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 anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have recently commented on NFLX shares. Piper Sandler reiterated an "overweight" rating and issued a $115.00 price target (up from $103.00) on shares of Netflix in a research note on Friday, April 17th. Rosenblatt Securities reduced their price target on shares of Netflix from $96.00 to $95.00 and set a "neutral" rating for the company in a research note on Friday, April 17th. Jefferies Financial Group reduced their price target on shares of Netflix from $134.00 to $128.00 and set a "buy" rating for the company in a research note on Friday, April 17th. Phillip Securities lifted their price target on shares of Netflix from $100.00 to $110.00 in a research note on Monday, April 20th. Finally, Argus reduced their price target on shares of Netflix from $141.00 to $110.00 and set a "buy" rating for the company in a research note on Thursday, January 22nd. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and fifteen have assigned a Hold rating to the company. Based on data from MarketBeat, Netflix presently has an average rating of "Moderate Buy" and a consensus price target of $114.82.

Insider Activity at Netflix

In related news, Director Reed Hastings sold 407,550 shares of the business's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the completion of 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 sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David A. Hyman sold 5,722 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total transaction of $503,993.76. Following the sale, the insider owned 316,100 shares of the company's stock, valued at $27,842,088. This trade represents a 1.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,422,769 shares of company stock valued at $135,144,073 in the last three months. Corporate insiders own 1.37% of the company's stock.

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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