Traders Purchase High Volume of Netflix Call Options (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) saw some unusual options trading activity on Wednesday. Traders bought 916,307 call options on the company. This is an increase of approximately 95% compared to the typical volume of 470,646 call options.

Insider Buying and Selling

In other Netflix news, CFO Spencer Adam Neumann sold 9,248 shares of Netflix stock in a transaction on Friday, February 6th. The shares were sold at an average price of $81.27, for a total value of $751,584.96. Following the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,996,669.49. The trade was a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Reed Hastings sold 390,970 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $83.63, for a total value of $32,696,821.10. Following the sale, the director owned 3,940 shares of the company’s stock, valued at approximately $329,502.20. This represents a 99.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 1,399,163 shares of company stock valued at $129,899,103 over the last quarter. Insiders own 1.37% of the company’s stock.

Institutional Trading of Netflix

A number of institutional investors have recently bought and sold shares of NFLX. Brighton Jones LLC boosted its stake in shares of Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock worth $4,804,000 after acquiring an additional 257 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after purchasing an additional 144 shares during the last quarter. Sivia Capital Partners LLC boosted its position in Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after purchasing an additional 246 shares in the last quarter. Strategic Investment Advisors MI grew its holdings 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 during the last quarter. Finally, Schnieders Capital Management LLC. increased its position in shares of 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 buying an additional 228 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Price Performance

NFLX stock opened at $84.58 on Friday. The business’s fifty day moving average price is $85.79 and its 200 day moving average price is $104.58. Netflix has a 12-month low of $75.01 and a 12-month high of $134.12. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.51. The company has a market capitalization of $357.11 billion, a PE ratio of 33.47, a P/E/G ratio of 1.47 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company had revenue of $12.05 billion for the quarter, compared to the consensus estimate of $11.97 billion. During the same period in the prior year, the firm posted $0.43 EPS. The company’s quarterly revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, sell-side analysts anticipate that Netflix will post 24.58 EPS for the current year.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Susquehanna upgraded shares of Netflix to a “positive” rating and set a $112.00 target price on the stock in a research report on Wednesday, January 21st. Robert W. Baird lowered their price objective on Netflix from $150.00 to $120.00 and set an “outperform” rating on the stock in a report on Friday, January 23rd. JPMorgan Chase & Co. reduced their target price on Netflix from $127.50 to $124.00 and set a “neutral” rating for the company in a report on Tuesday, November 18th. Citic Securities lowered their price target on Netflix from $109.00 to $95.00 and set a “hold” rating on the stock in a research note on Monday, January 26th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and set a $100.00 price target (down from $112.00) on shares of Netflix in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $116.08.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix publicly declined to increase its bid for Warner Bros. Discovery, signaling it may walk away rather than overpay; the market is treating that as shareholder-friendly (less cash risk, fewer integration/regulatory headaches). Netflix declines to raise offer (Reuters)
• Positive Sentiment: Investors are placing bullish bets: unusually large call-option volume was reported, indicating speculative optimism or hedged positioning ahead of a likely retreat from the WBD deal. Huge volume in Netflix call options (MSN)
• Neutral Sentiment: Warner Bros. Discovery’s board has determined Paramount Skydance’s revised $31-per-share offer could qualify as a “Company Superior Proposal,” triggering a four-business-day window for Netflix to match or walk — an event that creates uncertainty but not an immediate outcome. WBD Board says Paramount proposal could be superior (WBD/Yahoo)
• Neutral Sentiment: Netflix made a programming/content move: it and Apple TV will collaborate on F1 content (streaming the Canadian Grand Prix live in the U.S. and making Drive to Survive S8 available on Apple TV) — a small positive for growth/engagement but not a near-term earnings catalyst relative to the M&A story. Netflix and Apple TV join on F1 content (Reuters)
• Negative Sentiment: Regulatory and political risk remains a material overhang: several state attorneys general have urged the DOJ to probe Netflix’s proposed Warner deal, meaning any revived bidding or consummation would likely face intense antitrust review and delay. 11 US states urge DOJ to probe Netflix-WBD deal (Reuters)

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.