Netflix Sees Unusually High Options Volume (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) was the recipient of some unusual options trading activity on Wednesday. Traders acquired 341,788 put options on the stock. This represents an increase of approximately 37% compared to the typical daily volume of 248,625 put options.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the company. Wells Fargo & Company decreased their price objective on Netflix from $156.00 to $151.00 and set an “overweight” rating on the stock in a report on Wednesday, October 22nd. Morgan Stanley set a $120.00 price target on shares of Netflix in a research report on Thursday, December 18th. Rosenblatt Securities reissued a “neutral” rating and set a $105.00 price target (down from $152.00) on shares of Netflix in a research note on Monday, December 8th. KGI Securities raised shares of Netflix from a “neutral” rating to an “outperform” rating and set a $135.00 price objective for the company in a research note on Monday, November 3rd. Finally, Argus set a $141.00 target price on shares of Netflix in a report on Thursday, October 23rd. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $129.68.

Netflix Stock Down 0.1%

Shares of NASDAQ NFLX opened at $93.39 on Thursday. The firm’s fifty day moving average is $106.30 and its 200 day moving average is $116.75. Netflix has a 52 week low of $82.11 and a 52 week high of $134.12. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56. The company has a market cap of $395.70 billion, a price-to-earnings ratio of 39.01 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, beating the consensus estimate of $0.69 by $5.18. Netflix had a net margin of 24.05% and a return on equity of 41.86%. The business had revenue of $11.32 billion during the quarter, compared to analysts’ expectations of $11.52 billion. During the same quarter in the prior year, the company posted $0.54 EPS. The firm’s revenue for the quarter was up 17.2% compared to the same quarter last year. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. On average, equities research analysts expect that Netflix will post 24.58 earnings per share for the current year.

Key Stores Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Holiday viewing tailwind — Christmas streaming demand could boost Q4 engagement and ad/ARPU metrics, a near-term revenue positive if hours-watched climb. Disney Vs. Netflix: Christmas Streaming Wars And What It Means For The Stocks
• Positive Sentiment: Sector rotation into Communication Services — institutional flows favoring XLC (which holds NFLX) could support multiple expansion if investors rotate away from hardware/AI names into media and advertising-linked stocks.
• Neutral Sentiment: Analyst and retail interest is elevated — Netflix is a “trending” ticker with multiple write-ups and retrospectives; this increases volatility but doesn’t by itself change fundamentals. Netflix, Inc. (NFLX) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Short-interest report is noisy/odd — the published December short-interest figures show effectively zero shares and likely reflect a data anomaly rather than a real change in bearish positioning; not actionable until clarified.
• Negative Sentiment: Major financing tied to Warner bid raises leverage and execution risk — reports that Netflix is lining up ~$25 billion in bank financing for its Warner bid increase balance-sheet and regulatory risk, pressuring sentiment while deal uncertainty persists. Netflix Prepares $25 Billion in Bank Financing for Warner Deal
• Negative Sentiment: Takeover bid creates short-term volatility — coverage warns Netflix may see near-term pressure as the Warner/Bros contest could spur hostile bids, regulatory scrutiny, and dilution/leverage concerns. Should You Sell Netflix Stock Before It Wins the Warner Bros Takeover?
• Negative Sentiment: Heavy put activity — unusually large options trading (a ~37% jump in puts) signals short-term bearish bets or hedging demand, which can amplify downside price moves if sellers of puts or market makers hedge by selling shares.
• Negative Sentiment: Competitive pressure from YouTube — coverage highlighting YouTube’s daytime dominance underscores secular competition risks to engagement and ad revenue growth. YouTube Has a Firm Grip on Daytime TV
• Negative Sentiment: Ongoing takeover timeline and rival bids — timeline reporting on the Warner battle highlights sustained deal uncertainty and the potential for a protracted, value-destructive auction. The battle for Warner Bros.: A timeline of key developments

Insider Activity at Netflix

In related news, CEO Theodore A. Sarandos sold 20,270 shares of the company’s stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $109.21, for a total value of $2,213,646.16. Following the completion of the transaction, the chief executive officer directly owned 151,680 shares in the company, valued at approximately $16,564,669.44. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Reed Hastings sold 375,470 shares of the stock in a transaction on Monday, December 1st. The shares were sold at an average price of $108.43, for a total value of $40,712,212.10. Following the completion of the transaction, the director directly owned 3,940 shares in the company, valued at approximately $427,214.20. This represents a 98.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,619,840 shares of company stock worth $181,648,613 in the last three months. 1.37% of the stock is owned by insiders.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Netflix by 0.4% in the third quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock worth $46,183,983,000 after acquiring an additional 142,238 shares during the period. State Street Corp raised its holdings in Netflix by 2.1% in the 2nd quarter. State Street Corp now owns 17,444,013 shares of the Internet television network’s stock worth $23,359,801,000 after purchasing an additional 360,604 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Netflix by 2.4% in the 2nd quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network’s stock worth $13,234,278,000 after purchasing an additional 229,182 shares during the period. Norges Bank bought a new stake in shares of Netflix during the 2nd quarter valued at about $7,929,645,000. Finally, Alliancebernstein L.P. boosted its stake in shares of Netflix by 1.0% during the 1st quarter. Alliancebernstein L.P. now owns 5,194,939 shares of the Internet television network’s stock valued at $4,844,436,000 after purchasing an additional 53,611 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.