Purpose Unlimited Inc. Takes Position in Netflix, Inc. $NFLX

Key Points

• Purpose Unlimited Inc. initiated a new position in Netflix during the fourth quarter, buying 66,448 shares worth about $6.23 million.
• Netflix continues to attract major institutional interest: hedge funds such as Vanguard, State Street, and Geode sharply increased their holdings, and 80.93% of the stock is owned by institutions.
• Insider selling was notable, with Reed Hastings and CEO Theodore A. Sarandos both selling shares; Netflix also reported a stronger-than-expected quarter, beating EPS and revenue estimates.

Purpose Unlimited Inc. bought a new position in Netflix, Inc. (NASDAQ:NFLX - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 66,448 shares of the Internet television network's stock, valued at approximately $6,230,000.

Several other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. grew its holdings in Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the last quarter. State Street Corp raised its stake in shares of Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors raised its stake in shares of Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD boosted its holdings in shares of Netflix by 685.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at Netflix

In related news, Director Reed Hastings sold 420,550 shares of Netflix stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the sale, the director directly owned 3,940 shares in the company, valued at $376,230.60. The trade was a 99.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total value of $2,402,636.64. Following the sale, the chief executive officer owned 284,804 shares in the company, valued at $25,054,207.88. This represents a 8.75% decrease in their ownership of the stock. 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. In the last three months, insiders have sold 1,349,019 shares of company stock worth $123,105,721. 1.24% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts recently issued reports on NFLX shares. Citic Securities raised their target price on Netflix from $95.00 to $107.00 and gave the stock a "hold" rating in a research note on Monday, April 27th. Arete Research raised Netflix from a "neutral" rating to a "buy" rating in a research report on Friday, February 27th. President Capital increased their price objective on Netflix from $133.00 to $134.00 and gave the stock a "buy" rating in a report on Tuesday, March 31st. Oppenheimer set a $120.00 price objective on Netflix and gave the stock an "outperform" rating in a research report on Friday, April 17th. Finally, Seaport Research Partners boosted their target price on Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $114.26.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $77.38 on Friday. Netflix, Inc. has a 1 year low of $75.01 and a 1 year high of $134.12. The stock has a market capitalization of $325.83 billion, a P/E ratio of 24.99, a P/E/G ratio of 0.98 and a beta of 1.50. The company's 50-day moving average is $88.88 and its 200 day moving average is $90.14. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. The business 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%. Netflix's quarterly revenue was up 16.2% compared to the same quarter last year. During the same period last year, the business posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, sell-side analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current year.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Commentary says Netflix is trading at its cheapest valuation in years, which some investors view as a buying opportunity if the company can keep growing ads, pricing, and broader monetization. NFLX Stock Trades At Its Cheapest Valuation In 4 Years: Shay Boloor Calls It Massive 'Opportunity'
• Positive Sentiment: Netflix’s exclusive TV partnership with Ryan Coogler’s Proximity Media and its interest in more broadcaster deals suggest new ways to expand content reach and partnership-driven growth. Netflix (NFLX) Secures Ryan Coogler TV Deal For Exclusive New Series
• Positive Sentiment: Strong engagement around KPop Demon Hunters is highlighting Netflix’s ability to create major hits that keep users engaged and reinforce the strength of its content library. ‘KPop Demon Hunters’ Just Set Its Final Netflix Record
• Neutral Sentiment: Some analysts frame Netflix as more than a streaming stock now, pointing to its evolving monetization model and broader platform strategy. Netflix (NFLX) Is More Than a Streaming Stock Now. I Like the Opportunity
• Negative Sentiment: A director sold about $2.8 million of NFLX shares under a pre-arranged trading plan, which can still weigh on sentiment even if it was not a discretionary bearish call. Netflix NASDAQ: NFLX Director Sells $2,789,944.80 in Stock
• Negative Sentiment: Ongoing headlines about the Lionsgate rumor being denied, concerns over a lack of near-term catalysts, and comparisons favoring Amazon over Netflix have reinforced cautious investor sentiment. The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&A (NFLX)

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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