Netflix Target of Unusually High Options Trading (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) was the recipient of some unusual options trading activity on Thursday. Traders acquired 828,879 put options on the company. This represents an increase of 163% compared to the typical daily volume of 315,490 put options.

Analyst Ratings Changes

NFLX has been the topic of a number of recent analyst reports. Barclays reiterated a “neutral” rating and issued a $110.00 price objective on shares of Netflix in a research report on Friday, December 5th. Huber Research downgraded shares of Netflix to a “buy” rating in a report on Friday, December 5th. JPMorgan Chase & Co. reduced their price objective on shares of Netflix from $127.50 to $124.00 and set a “neutral” rating for the company in a research note on Tuesday, November 18th. UBS Group set a $142.00 price objective on shares of Netflix in a report on Monday, December 8th. Finally, Canaccord Genuity Group reaffirmed a “buy” rating and issued a $152.50 target price on shares of Netflix in a report on Monday, December 8th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $127.91.

Insider Buying and Selling

In related news, insider David A. Hyman sold 314,620 shares of the stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total transaction of $34,603,166.08. Following the completion of the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at $34,765,942.40. This represents a 49.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Gregory K. Peters sold 20,270 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.57, for a total transaction of $2,220,943.36. Following the completion of the sale, the chief executive officer owned 127,810 shares of the company’s stock, valued at approximately $14,003,886.08. The trade was a 13.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,598,370 shares of company stock worth $168,251,193 in the last ninety days. Insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several hedge funds and other institutional investors have recently modified their holdings of NFLX. First Financial Corp IN boosted its stake in Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after buying an additional 243 shares in the last quarter. Imprint Wealth LLC acquired a new stake in shares of Netflix during the 3rd quarter valued at $25,000. Retirement Wealth Solutions LLC acquired a new position in shares of Netflix in the 3rd quarter worth $28,000. MB Levis & Associates LLC raised its position in shares of Netflix by 177.8% during the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock worth $28,000 after purchasing an additional 192 shares during the period. Finally, Legacy Investment Solutions LLC purchased a new stake in shares of Netflix during the second quarter valued at $31,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Stock Performance

Netflix stock traded down $0.50 during mid-day trading on Thursday, reaching $88.05. The company’s stock had a trading volume of 36,800,750 shares, compared to its average volume of 42,382,859. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. Netflix has a twelve month low of $82.11 and a twelve month high of $134.12. The business has a 50 day moving average price of $99.84 and a 200-day moving average price of $113.42. The firm has a market cap of $373.10 billion, a price-to-earnings ratio of 36.78 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.96 by ($1.09). Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business had revenue of $11.51 billion during the quarter, compared to the consensus estimate of $11.51 billion. During the same quarter in the previous year, the business posted $5.40 earnings per share. The company’s quarterly revenue was up 17.2% compared to the same quarter last year. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Sell-side analysts predict that Netflix will post 24.58 EPS for the current fiscal year.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Ad‑tier momentum: Netflix’s ad-supported tier is showing accelerated growth with a record ad quarter and plans to double ad revenues in 2025 — a material, higher‑margin revenue stream if it continues to scale. Netflix Ad-Tier Growth Accelerates
• Positive Sentiment: Content pipeline boost: Netflix struck a global deal to stream Sony Pictures’ films after their theatrical windows — strengthens future content slate and subscriber value. Netflix inks global deal to stream Sony Pictures’ films
• Positive Sentiment: Some analyst conviction remains: Select firms (e.g., BMO) have reaffirmed buy ratings and high price targets based on long‑term ad and subscriber potential. Buy Rating Reaffirmed on Strong Fundamentals
• Neutral Sentiment: Earnings catalyst ahead: Q4 2025 results (after the close Jan. 20) could either reset the narrative if ad and subscriber metrics reaccelerate or confirm concerns after Q3’s miss — event risk for short‑term traders. What I’m watching for in Netflix’s earnings report
• Negative Sentiment: M&A overhang and analyst cuts: Continued uncertainty around the proposed Warner Bros. deal has prompted price‑target cuts and investor hesitation; Wedbush and others cite the takeover as a key overhang. Netflix shares lag ahead of earnings, analysts lower price target on M&A overhang
• Negative Sentiment: All‑cash bid risk: Reports that Netflix is considering converting its WBD offer to an all‑cash bid raise concerns about near‑term cash needs, EPS dilution or financing complexity if the company pushes to close the deal. Netflix preparing all-cash offer for Warner Bros
• Negative Sentiment: Legal and disclosure uncertainty: A judge ruled Warner Bros. Discovery doesn’t have to promptly disclose deal details sought by rivals — prolongs information vacuum and keeps takeover uncertainty elevated. Warner Discovery Doesn’t Need to Disclose Netflix Deal Details

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.