Sumitomo Mitsui Trust Group Inc. Buys 10,879,276 Shares of Netflix, Inc. $NFLX

Key Points

• Sumitomo Mitsui Trust Group bought 10,879,276 Netflix shares in Q4, raising its stake to 12,099,908 shares worth about $1.13 billion and making Netflix its 21st-largest holding (about 0.29% of Netflix; ~0.7% of the fund's portfolio).
• Analyst sentiment has turned positive with multiple upgrades and a consensus price target of roughly $115.50, leaving the stock with an average rating of "Moderate Buy."
• Company insiders have been net sellers recently: CEO Gregory Peters and CFO Spencer Neumann sold large blocks (105,781 and 57,260 shares, respectively), and insiders disposed of 1,543,023 shares worth about $141.1 million over the last 90 days.

Sumitomo Mitsui Trust Group Inc. grew its stake in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 891.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 12,099,908 shares of the Internet television network's stock after acquiring an additional 10,879,276 shares during the period. Netflix accounts for about 0.7% of Sumitomo Mitsui Trust Group Inc.'s investment portfolio, making the stock its 21st biggest position. Sumitomo Mitsui Trust Group Inc. owned approximately 0.29% of Netflix worth $1,134,487,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently modified their holdings of the stock. Natural Investments LLC raised its stake in shares of Netflix by 0.5% in the third quarter. Natural Investments LLC now owns 1,668 shares of the Internet television network's stock worth $1,999,000 after acquiring an additional 9 shares during the last quarter. Hengehold Capital Management LLC raised its stake in shares of Netflix by 3.3% in the third quarter. Hengehold Capital Management LLC now owns 282 shares of the Internet television network's stock worth $338,000 after acquiring an additional 9 shares during the last quarter. Financial Partners Group Inc raised its stake in shares of Netflix by 0.9% in the third quarter. Financial Partners Group Inc now owns 969 shares of the Internet television network's stock worth $1,162,000 after acquiring an additional 9 shares during the last quarter. Seascape Capital Management raised its stake in shares of Netflix by 1.6% in the third quarter. Seascape Capital Management now owns 568 shares of the Internet television network's stock worth $681,000 after acquiring an additional 9 shares during the last quarter. Finally, Crews Bank & Trust raised its stake in shares of Netflix by 5.8% during the third quarter. Crews Bank & Trust now owns 164 shares of the Internet television network's stock worth $197,000 after buying an additional 9 shares during the last quarter. 80.93% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research firms recently weighed in on NFLX. Piper Sandler reissued a "positive" rating and set a $103.00 price target (down from $140.00) on shares of Netflix in a research note on Wednesday, January 21st. Morgan Stanley boosted their price target on shares of Netflix from $110.00 to $115.00 and gave the stock an "overweight" rating in a research note on Thursday. Freedom Capital raised shares of Netflix from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, January 27th. Cfra raised shares of Netflix from a "hold" rating to a "buy" rating and set a $115.00 price target for the company in a research note on Friday, March 6th. Finally, Rothschild & Co Redburn set a $120.00 price target on shares of Netflix in a research note on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $115.50.

Insider Activity

In related news, CEO Gregory K. Peters sold 105,781 shares of the business's stock in a transaction that occurred on Thursday, January 29th. The shares were sold at an average price of $82.94, for a total transaction of $8,773,476.14. Following the completion of the transaction, the chief executive officer owned 122,140 shares in the company, valued at approximately $10,130,291.60. The trade was a 46.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Spencer Adam Neumann sold 57,260 shares of the business's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $95.50, for a total transaction of $5,468,330.00. Following the transaction, the chief financial officer owned 73,787 shares of the company's stock, valued at approximately $7,046,658.50. This represents a 43.69% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 1,543,023 shares of company stock valued at $141,145,842. 1.37% of the stock is currently owned by company insiders.

Netflix Stock Up 0.9%

Shares of NASDAQ NFLX opened at $103.02 on Friday. The stock has a market cap of $434.96 billion, a P/E ratio of 40.77, a P/E/G ratio of 1.56 and a beta of 1.67. The firm has a 50 day moving average price of $89.88 and a 200 day moving average price of $99.14. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19. Netflix, Inc. has a 52-week low of $75.01 and a 52-week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.01. The firm had revenue of $12.05 billion during the quarter, compared to analysts' expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business's revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.43 earnings per share. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Multiple analyst upgrades and price-target raises lift sentiment — Wedbush bumped its target and kept an Outperform rating, Morgan Stanley raised its target and maintained Overweight, and HSBC lifted its target while keeping a Buy. These moves point to growing confidence in Netflix’s revenue and margin outlook. Wedbush price-target raise
• Positive Sentiment: Ad-supported tier is scaling and lowering churn, which analysts say boosts advertiser confidence and monetization — a key driver for revenue upside and margin expansion. Ad-tier traction
• Positive Sentiment: Analysts expect stronger operating margins and more buybacks — one analyst notes Netflix could lift its 2026 operating-margin guide toward ~32% while sustaining mid-teens revenue growth, supporting higher EPS and potential share repurchases. Margin/ buyback outlook
• Positive Sentiment: Institutional buying: several high-profile funds increased Netflix positions after the Warner Bros. deal fell through, signaling conviction from big investors. That institutional demand is propping up the stock into earnings. Hedge funds adding
• Neutral Sentiment: Upcoming catalyst: Q1 earnings on April 16 is the immediate event — positive prints on ad revenue, pricing, or margins could extend the rally; a miss could reverse gains. Earnings catalyst
• Neutral Sentiment: Media/market commentary highlights Netflix’s steady revenue growth versus peers and frames the stock as a durable streaming leader; useful context but not immediate price drivers. Industry comparisons
• Negative Sentiment: Balance-sheet nuance: coverage points to roughly $7.4B in stock-option obligations that can act like hidden leverage — a reminder for investors watching capital allocation and net-debt metrics. Hidden option liability
• Negative Sentiment: Post-earnings volatility risk — options-market patterns suggest a “sawtooth” and potential for a sharp move after the print; that raises short-term risk even if fundamentals look sound. Options volatility risk

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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