Rakuten Securities Inc. Boosts Stake in Netflix, Inc. $NFLX

Key Points

• Rakuten Securities boosted its Netflix stake by 1,071.4% in Q4 to 43,833 shares (worth $4.11M), making Netflix about 1.3% of its portfolio and its 16th-largest holding.
• Netflix posted a strong Q1 beat, reporting $1.23 EPS vs $0.76 expected and $12.25B in revenue with a 28.5% net margin; it set Q2 guidance at $0.78 and analysts project roughly $3.53 in FY EPS.
• Board authorized an additional $25 billion share buyback, a key near-term catalyst for the stock, even as insiders sold ~1.49M shares in the past 90 days and institutional ownership is ~80.9%.

Rakuten Securities Inc. grew its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 1,071.4% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 43,833 shares of the Internet television network's stock after buying an additional 40,091 shares during the quarter. Netflix accounts for approximately 1.3% of Rakuten Securities Inc.'s investment portfolio, making the stock its 16th biggest holding. Rakuten Securities Inc.'s holdings in Netflix were worth $4,110,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Davis Rea LTD. purchased a new stake in shares of Netflix during the 4th quarter valued at $3,777,000. Lebenthal Global Advisors LLC boosted its holdings in shares of Netflix by 665.2% in the 4th quarter. Lebenthal Global Advisors LLC now owns 22,092 shares of the Internet television network's stock worth $2,071,000 after buying an additional 19,205 shares during the last quarter. Cora Capital Advisors LLC grew its position in Netflix by 1,226.8% during the fourth quarter. Cora Capital Advisors LLC now owns 2,229 shares of the Internet television network's stock valued at $209,000 after buying an additional 2,061 shares during the period. Field & Main Bank grew its position in Netflix by 1,112.4% during the fourth quarter. Field & Main Bank now owns 15,215 shares of the Internet television network's stock valued at $1,427,000 after buying an additional 13,960 shares during the period. Finally, Citizens & Northern Corp purchased a new stake in Netflix during the fourth quarter worth about $1,466,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix Stock Performance

NASDAQ NFLX opened at $92.82 on Friday. The company's 50 day simple moving average is $93.29 and its two-hundred day simple moving average is $97.74. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.19. 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 $390.85 billion, a PE ratio of 29.98, a P/E/G ratio of 1.21 and a beta of 1.67.

Netflix (NASDAQ:NFLX - Get Free Report) last released 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 firm 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 business's revenue for the quarter was up 16.2% on a year-over-year basis. During the same period in the previous year, the business earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts predict that Netflix, Inc. will post 3.53 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Reed Hastings sold 420,550 shares of the business's stock in a transaction dated 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 completion of the transaction, 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 57,260 shares of the company's stock in a transaction dated Friday, February 27th. The stock was 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 in the company, valued at $7,046,658.50. This represents a 43.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,487,794 shares of company stock valued at $136,255,772 in the last ninety days. Corporate insiders own 1.37% of the company's stock.

Analyst Ratings Changes

A number of research firms have weighed in on NFLX. Morgan Stanley reiterated an "overweight" rating on shares of Netflix in a research note on Friday, April 17th. HSBC raised their target price on Netflix from $106.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, April 10th. KeyCorp reissued an "overweight" rating and issued a $115.00 price objective (up from $108.00) on shares of Netflix in a report on Tuesday, April 14th. Oppenheimer set a $120.00 target price on shares of Netflix and gave the stock an "outperform" rating in a research report on Friday, April 17th. Finally, The Goldman Sachs Group raised shares of Netflix from a "neutral" rating to a "buy" rating in a research report on Monday, April 13th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and fourteen have issued a Hold rating to the company's stock. According to MarketBeat, Netflix has an average rating of "Moderate Buy" and a consensus target price of $114.53.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Board authorizes an additional $25 billion share buyback (adds to December 2024 buyback, no expiration). The large repurchase boosts capital returns, supports EPS and float, and was cited by markets as the primary near-term catalyst for the stock lift. Netflix announces $25 billion share buyback (Reuters)
• Positive Sentiment: Analyst and investor support: Daiwa raised its price target and kept an outperform stance; JPMorgan reaffirmed its buy rating; noted active purchases from high-profile investors (e.g., Cathie Wood) reinforce institutional confidence. These endorsements can underpin further upside if fundamentals recover. Daiwa raises price target (MarketScreener) Cathie Wood keeps buying (Barchart)
• Positive Sentiment: Product/engagement initiatives: Netflix plans a TikTok-style vertical video feed to drive mobile engagement and discoverability — a strategic push to capture “snackable” viewing that could boost retention/monetization over time. Netflix eyes TikTok-style feed (Benzinga)
• Neutral Sentiment: Analyst commentary and valuation debate: Coverage highlights a pullback that some see as a buying opportunity while others caution on near-term risk; mixed views mean sentiment could swing with subsequent results or guidance. Valuation debate after pullback (Yahoo Finance)
• Neutral Sentiment: Strategic real estate/production expansion: Reports Netflix is in talks to buy LA studio space — could expand content capacity but would be a capital-intensive move. Netflix in talks to buy studio space (Yahoo Market Chatter)
• Neutral Sentiment: Corporate governance: Netflix’s board recommended “no” votes on two shareholder proposals tied to cultural/content disputes—governance item that may matter to some investors but is unlikely to move fundamentals. Board recommends no votes (Forbes)
• Negative Sentiment: Failed bid / industry consolidation: Warner Bros. shareholders approved a $110B sale to Paramount Skydance, closing off the acquisition Netflix pursued; consolidation reduces one strategic growth pathway and underscores competition for assets. Warner Bros sale approved (Yahoo Finance)
• Negative Sentiment: Q1 guidance and selloff risk: The stock plunged after softer-than-expected Q2 guidance and margin/earnings concerns; until growth or margins re-accelerate, downside risk remains despite the buyback. Q1 guidance selloff (Seeking Alpha)

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.