Sandy Cove Advisors LLC Raises Position in Netflix, Inc. $NFLX

Key Points

• Sandy Cove Advisors boosted its Netflix stake by 894.7% in the fourth quarter, ending with 13,359 shares worth about $1.25 million. Several other institutional investors also sharply increased their positions, and institutions now own 80.93% of Netflix shares.
• Netflix’s ad-supported tier has surpassed 250 million monthly viewers, which supports the company’s advertising growth narrative. The company is also expanding into live and podcast-style content through a deeper partnership with iHeartMedia.
• Netflix reported better-than-expected Q1 earnings, with EPS of $1.23 versus $0.76 expected and revenue of $12.25 billion. However, analysts remain mixed overall, with a consensus rating of Moderate Buy and an average price target of $114.82.

Sandy Cove Advisors LLC lifted its stake in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 894.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 13,359 shares of the Internet television network's stock after purchasing an additional 12,016 shares during the period. Sandy Cove Advisors LLC's holdings in Netflix were worth $1,253,000 at the end of the most recent quarter.

Several other large investors also recently modified their holdings of the stock. 44 Wealth Management LLC increased its stake in shares of Netflix by 691.7% during the 4th quarter. 44 Wealth Management LLC now owns 4,188 shares of the Internet television network's stock worth $393,000 after purchasing an additional 3,659 shares during the last quarter. Clearstead Trust LLC increased its stake in shares of Netflix by 987.5% during the 4th quarter. Clearstead Trust LLC now owns 9,015 shares of the Internet television network's stock worth $845,000 after purchasing an additional 8,186 shares during the last quarter. Nicola Wealth Management LTD. increased its stake in shares of Netflix by 1,291.7% during the 4th quarter. Nicola Wealth Management LTD. now owns 167,000 shares of the Internet television network's stock worth $15,658,000 after purchasing an additional 155,000 shares during the last quarter. CYBER HORNET ETFs LLC increased its stake in shares of Netflix by 949.7% during the 4th quarter. CYBER HORNET ETFs LLC now owns 12,376 shares of the Internet television network's stock worth $1,160,000 after purchasing an additional 11,197 shares during the last quarter. Finally, Westover Capital Advisors LLC increased its stake in shares of Netflix by 835.4% during the 4th quarter. Westover Capital Advisors LLC now owns 95,482 shares of the Internet television network's stock worth $8,952,000 after purchasing an additional 85,274 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Headlines Impacting Netflix

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

Analysts Set New Price Targets

NFLX has been the subject of several research analyst reports. Loop Capital set a $104.00 price target on shares of Netflix in a research note on Tuesday, January 27th. UBS Group set a $104.00 price target on shares of Netflix in a research note on Tuesday, January 27th. Huber Research raised shares of Netflix from a "strong sell" rating to a "strong-buy" rating in a report on Friday, February 27th. Raymond James Financial reaffirmed a "market perform" rating on shares of Netflix in a report on Thursday, May 14th. Finally, KeyCorp reaffirmed 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. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen 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 a consensus price target of $114.82.

Netflix Price Performance

Shares of NASDAQ:NFLX opened at $88.60 on Monday. The firm has a fifty day moving average price of $93.88 and a two-hundred day moving average price of $93.93. 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, Inc. has a one year low of $75.01 and a one year high of $134.12. The company has a market cap of $373.08 billion, a price-to-earnings ratio of 28.62, a PEG ratio of 1.13 and a beta of 1.55.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business's quarterly revenue was up 16.2% compared to the same quarter last year. During the same period last year, the firm earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Activity

In related news, Director Reed Hastings sold 407,550 shares of Netflix stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.13, for a total value of $37,955,131.50. Following the transaction, the director owned 3,940 shares in the company, valued at $366,932.20. This trade represents a 99.04% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 dated Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total transaction of $503,993.76. Following the completion of the transaction, the insider owned 316,100 shares in the company, valued at $27,842,088. The trade was a 1.78% decrease in their position. 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. In the last 90 days, insiders have sold 1,422,769 shares of company stock worth $135,144,073. Corporate insiders own 1.24% of the company's stock.

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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