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

Netflix, Inc. (NASDAQ:NFLX) saw some unusual options trading activity on Thursday. Stock traders purchased 765,409 call options on the stock. This represents an increase of approximately 114% compared to the typical volume of 357,092 call options.

Netflix Price Performance

NFLX traded down $2.11 during midday trading on Thursday, reaching $83.25. 46,294,047 shares of the company’s stock were exchanged, compared to its average volume of 53,809,734. The business’s 50-day moving average price is $97.34 and its 200 day moving average price is $111.91. The stock has a market capitalization of $352.75 billion, a PE ratio of 32.94 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. Netflix has a 1-year low of $81.93 and a 1-year high of $134.12.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.01. Netflix had a return on equity of 43.96% and a net margin of 24.30%.The company had revenue of $12.05 billion during the quarter, compared to analysts’ expectations of $11.97 billion. During the same period in the previous year, the firm posted $0.43 earnings per share. The business’s revenue for the quarter was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, equities analysts anticipate that Netflix will post 24.58 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on NFLX. Susquehanna upgraded Netflix to a “positive” rating and set a $112.00 price target on the stock in a research report on Wednesday. Redburn Partners set a $120.00 price target on Netflix in a research note on Wednesday. Huber Research lowered shares of Netflix to a “buy” rating in a research report on Friday, December 5th. Erste Group Bank downgraded shares of Netflix from a “buy” rating to a “hold” rating in a research report on Friday, October 31st. Finally, Guggenheim cut their price target on shares of Netflix from $145.00 to $130.00 and set a “buy” rating for the company in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $119.36.

Insider Activity

In other Netflix news, Director Bradford L. Smith sold 31,790 shares of Netflix stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the transaction, the director owned 79,690 shares of the company’s stock, valued at $7,081,253.40. The trade was a 28.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 20,270 shares of the stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $109.57, for a total value of $2,220,943.36. Following the completion of the sale, the chief executive officer directly owned 127,810 shares of the company’s stock, valued at $14,003,886.08. The trade was a 13.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,653,599 shares of company stock worth $173,141,263 over the last ninety days. 1.37% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NFLX. First Financial Corp IN grew its stake in shares of Netflix by 900.0% during the 4th 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 during the period. DiNuzzo Private Wealth Inc. grew its position in Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 239 shares during the period. Imprint Wealth LLC acquired a new stake in Netflix during the third quarter worth about $25,000. Retirement Wealth Solutions LLC purchased a new position in shares of Netflix in the 3rd quarter worth about $28,000. Finally, MB Levis & Associates LLC lifted its stake in shares of Netflix by 177.8% in the 4th quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock valued at $28,000 after purchasing an additional 192 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 fundamentals showed strength — Netflix beat EPS and revenue modestly, crossed ~325M paid members and reported strong ad and pricing gains, providing evidence the core streaming business is still growing. Reuters: Netflix beats revenue estimates
• Positive Sentiment: Advertising is scaling — management said ad revenue topped roughly $1.5B in 2025, supporting a material new monetization stream beyond subscriptions that could boost long‑term EPS. Deadline: Ad revenue update
• Positive Sentiment: Institutional / activist flows — some large funds (e.g., ARK) added shares after the report, which can provide support under current volatility. Blockonomi: ARK buys NFLX
• Neutral Sentiment: Netflix amended its WBD offer to an all‑cash structure — this clarifies the bid (removes stock contingency) but concentrates cash needs on Netflix rather than changing the headline price. That tradeoff leaves outcomes and approval risk still open. CNBC: All‑cash WBD amendment
• Neutral Sentiment: Regulatory path and rival bids remain key — EU/antitrust scrutiny and Paramount’s challenge raise deal execution uncertainty; market is pricing that uncertainty rather than the theoretical strategic upside. Reuters: EU to weigh bids
• Negative Sentiment: Disappointing near‑term guidance — Q1 EPS guidance came in below street expectations, which was the proximate cause of the sell‑off despite the Q4 beat. Proactive: Guidance disappointment
• Negative Sentiment: Share‑buyback pause to fund WBD — management suspended repurchases to conserve cash for the acquisition, removing an EPS support lever and raising near‑term capital‑allocation concerns for shareholders. TalkMarkets: Buyback pause
• Negative Sentiment: Higher content spending & margin pressure — Netflix plans to increase programming spend (~+10% in 2026), which clouds near‑term margins even if it supports engagement long‑term. Financial Post: Content spending rise
• Negative Sentiment: Analyst & price‑target churn plus insider selling — several shops trimmed targets or guidance and recent insider sales have amplified negative sentiment, prompting re‑rating risk. MarketScreener: PT cuts

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.