Vanguard Group Inc. Buys 351,493,659 Shares of Netflix, Inc. $NFLX

Key Points

• Vanguard boosted its Netflix stake by 912.5% in Q4, buying an additional 351,493,659 shares to own 390,014,981 shares (about 9.24% of Netflix), valued at roughly $36.57 billion and making NFLX its 21st largest holding.
• Netflix beat Q1 estimates (EPS $1.23 vs. $0.76; revenue $12.25B, +16.2% y/y) but issued weak Q2 guidance that raised churn concerns, while the board approved a $25 billion unlimited share buyback that bolstered market sentiment.
• Insiders sold heavily last quarter (1,487,794 shares worth ~$136.3M, including sales by the CEO and Reed Hastings) even as institutional ownership remains high (~80.9%), creating mixed signals for investors.

Vanguard Group Inc. boosted its position in shares of Netflix, Inc. (NASDAQ:NFLX - Free Report) by 912.5% during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 390,014,981 shares of the Internet television network's stock after buying an additional 351,493,659 shares during the quarter. Netflix makes up approximately 0.5% of Vanguard Group Inc.'s holdings, making the stock its 21st largest holding. Vanguard Group Inc. owned about 9.24% of Netflix worth $36,567,805,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of NFLX. Brighton Jones LLC boosted its stake in shares of Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after purchasing an additional 257 shares during the last quarter. Revolve Wealth Partners LLC raised its position in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after acquiring an additional 144 shares during the last quarter. Sivia Capital Partners LLC raised its position in shares of Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after acquiring an additional 246 shares during the last quarter. Strategic Investment Advisors MI increased its stake in Netflix by 18.9% in the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after purchasing an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. increased its stake in Netflix by 12.1% in the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after purchasing an additional 228 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Stock Down 0.5%

Shares of Netflix stock opened at $92.37 on Friday. The business's 50 day simple moving average is $93.60 and its 200 day simple moving average is $97.70. Netflix, Inc. has a 52-week low of $75.01 and a 52-week high of $134.12. The firm has a market cap of $388.94 billion, a PE ratio of 29.83, a P/E/G ratio of 1.20 and a beta of 1.67. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.19 and a current ratio of 1.41.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. During the same quarter last year, the firm earned $6.61 EPS. Netflix's revenue for the quarter was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, analysts predict that Netflix, Inc. will post 3.53 earnings per share for the current fiscal year.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Board approved a $25 billion additional share repurchase authorization (no expiration), boosting capital returns and supporting the share price rally. Netflix announces $25 billion share buyback (Reuters)
• Positive Sentiment: Market reaction: the buyback and messaging drove pre-market gains and helped stem the post-earnings selloff. Netflix authorizes fresh $25B buyback (MSN)
• Positive Sentiment: Wall Street support: JPMorgan reaffirmed a Buy on NFLX, and Daiwa raised its price target, both reinforcing investor confidence after the drop. JPMorgan reaffirms Buy (AmericanBankingNews) Daiwa raises price target to $102 (MarketScreener)
• Positive Sentiment: Notable institutional interest — Cathie Wood continued buying shares, signaling conviction from some active growth managers. Cathie Wood keeps buying (Barchart)
• Neutral Sentiment: Industry M&A backdrop: Warner Bros. shareholders approved a large Paramount Skydance acquisition — consolidation could reshape content economics and competitive dynamics, with mixed implications for Netflix (it was the losing bidder). Warner Bros shareholders approve deal (Yahoo Finance)
• Neutral Sentiment: Strategic moves: reports Netflix is in talks to buy Los Angeles studio space — this would be a content-production play that supports long-term content pipeline but is not an immediate earnings driver. Netflix in talks to buy LA studio space (Yahoo Market Chatter)
• Neutral Sentiment: Governance item: Netflix’s board recommended “No” on two shareholder proposals tied to ideological content concerns — likely low short-term financial impact but could matter to activist investors. Board recommends No on proposals (Forbes)
• Negative Sentiment: Guidance and churn risk: management’s weak Q2 guidance after a Q1 beat signaled rising subscriber churn, which sparked the initial selloff and remains the primary near-term headwind for the stock. Buyback-and-chill strategy but guidance weak (The Daily Upside)
• Negative Sentiment: Analyst and market reaction: several pieces discuss the post-earnings selloff and questions about subscriber momentum and valuation — signaling continued volatility until membership trends stabilize. What is next after Q1 guidance selloff (Seeking Alpha)

Analyst Upgrades and Downgrades

Several equities research analysts have commented on NFLX shares. TD Cowen lowered their target price on shares of Netflix from $115.00 to $112.00 and set a "buy" rating for the company in a research note on Wednesday, January 21st. Citigroup started coverage on shares of Netflix in a research note on Thursday, April 16th. They issued a "market perform" rating for the company. Pivotal Research set a $96.00 target price on shares of Netflix and gave the company a "hold" rating in a research note on Friday, April 17th. Citic Securities lowered their target price on shares of Netflix from $109.00 to $95.00 and set a "hold" rating for the company in a research note on Monday, January 26th. Finally, BMO Capital Markets lowered their target price on Netflix from $143.00 to $135.00 and set an "outperform" rating for the company in a research note on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and fourteen have assigned a Hold rating to the stock. According to data from MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and an average price target of $114.53.

Insiders Place Their Bets

In related news, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $83.24, for a total value of $2,273,450.88. Following the sale, the chief executive officer owned 122,140 shares of the company's stock, valued at approximately $10,166,933.60. The trade was a 18.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Reed Hastings sold 420,550 shares of Netflix stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total value of $40,158,319.50. Following the completion of the sale, the director directly owned 3,940 shares in the company, valued at approximately $376,230.60. This represents a 99.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,487,794 shares of company stock valued at $136,255,772 in the last quarter. 1.37% of the stock is currently owned by corporate insiders.

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.

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