Telos Capital Management Inc. Acquires 59,327 Shares of Netflix, Inc. $NFLX

Key Points

• Telos Capital Management increased its Netflix stake by 125% in the first quarter, buying 59,327 additional shares and bringing its total holding to 106,801 shares valued at about $10.27 million.
• Netflix shares fell 5.8% and were trading near $72.88, close to their 52-week low of $71.81, even as the company reported stronger-than-expected quarterly results with $1.23 EPS and revenue of $12.25 billion.
• Despite positive content moves like an expanded iHeartMedia video podcast partnership and a “Hot Ones” spinoff deal, sentiment has been mixed due to concerns about missed acquisition opportunities and continued stock weakness; analysts still rate Netflix a Moderate Buy overall.

Telos Capital Management Inc. boosted its holdings in Netflix, Inc. (NASDAQ:NFLX - Free Report) by 125.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 106,801 shares of the Internet television network's stock after acquiring an additional 59,327 shares during the quarter. Telos Capital Management Inc.'s holdings in Netflix were worth $10,269,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. First Financial Corp IN raised its holdings in shares of Netflix by 900.0% in the 4th 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 in the last quarter. DiNuzzo Private Wealth Inc. boosted its stake in Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after buying an additional 239 shares in the last quarter. Turning Point Benefit Group Inc. boosted its stake in Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares in the last quarter. Imprint Wealth LLC bought a new stake in Netflix in the third quarter valued at $25,000. Finally, Cornerstone Financial Management LLC bought a new stake in Netflix in the fourth quarter valued at $26,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Trading Down 5.8%

Shares of NFLX opened at $72.88 on Tuesday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The company has a market cap of $306.88 billion, a price-to-earnings ratio of 23.54, a PEG ratio of 0.98 and a beta of 1.50. The stock has a fifty day moving average price of $88.30 and a two-hundred day moving average price of $89.75. Netflix, Inc. has a 52-week low of $71.81 and a 52-week 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 EPS for the quarter, topping the consensus estimate of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. During the same quarter in the prior year, the business earned $6.61 earnings per share. The business's revenue for the quarter was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts predict that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix expanded its video podcast partnership with iHeartMedia, adding more iHeartPodcasts as video shows on the platform and strengthening its content offering. Netflix Expands Video Podcast Partnership with iHeartMedia
• Positive Sentiment: Netflix bought a “Hot Ones” spinoff, a content deal that reinforces its rivalry with YouTube and supports its push into popular creator-driven programming. Netflix Buys a ‘Hot Ones’ Spinoff
• Neutral Sentiment: Some commentary argues Netflix may look undervalued after the recent selloff, with analysts still seeing upside if the business continues to execute. Is Netflix Inc (NFLX) a Bargain After 5.8% Drop? GF Value Says Undervalued
• Negative Sentiment: Investor sentiment was hurt by reports that Netflix was outbid or passed over on major acquisition targets, fueling concern that the company is missing strategic growth opportunities. After Missing Out on Roku, Netflix Claims It Won't Buy Lionsgate. Here's Why the Market Hates That Answer.
• Negative Sentiment: Analysts and market commentators warned against “catching the falling knife,” reflecting concern that NFLX could remain under pressure after breaking to new lows. Netflix Stock Slump Continues: Citizens JMP Warns Against Catching the Falling Knife

Insider Buying and Selling at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the business's stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 284,804 shares of the company's stock, valued at approximately $25,054,207.88. The trade was a 8.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Adam Neumann sold 28,630 shares of the business's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $98.00, for a total transaction of $2,805,740.00. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company's stock, valued at approximately $7,231,126. This represents a 27.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 1,349,019 shares of company stock worth $123,105,721 over the last quarter. Corporate insiders own 1.24% of the company's stock.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. Weiss Ratings raised Netflix from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 4th. Piper Sandler reaffirmed an "overweight" rating and issued a $115.00 target price (up from $103.00) on shares of Netflix in a report on Friday, April 17th. Wedbush reiterated an "outperform" rating and set a $118.00 target price on shares of Netflix in a research report on Thursday, April 16th. Bank of America reiterated a "buy" rating and set a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Finally, Daiwa Securities Group lifted their price target on shares of Netflix from $97.00 to $102.00 and gave the company an "outperform" rating in a report on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $114.26.

Netflix Company 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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