Netflix Sees Unusually High Options Volume (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) was the target of some unusual options trading on Thursday. Stock traders purchased 270,542 call options on the stock. This is an increase of 31% compared to the average volume of 207,138 call options.

Netflix Stock Up 2.1%

Shares of NFLX stock traded up $1.98 on Thursday, reaching $94.69. 22,267,576 shares of the stock were exchanged, compared to its average volume of 40,659,777. Netflix has a twelve month low of $82.11 and a twelve month high of $134.12. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. The company has a market capitalization of $401.22 billion, a price-to-earnings ratio of 39.55, a PEG ratio of 1.43 and a beta of 1.71. The business’s 50 day moving average price is $111.43 and its 200 day moving average price is $118.63.

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

Insider Activity

In related news, CEO Theodore A. Sarandos sold 20,270 shares of Netflix stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $109.21, for a total transaction of $2,213,646.16. Following the sale, the chief executive officer owned 151,680 shares of the company’s stock, valued at approximately $16,564,669.44. This trade represents a 11.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David A. Hyman sold 314,620 shares of Netflix stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $109.98, for a total value of $34,603,166.08. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $34,765,942.40. The trade was a 49.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 1,619,840 shares of company stock valued at $181,648,613. Corporate insiders own 1.37% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Optima Capital LLC raised its position in shares of Netflix by 3.5% in the 2nd quarter. Optima Capital LLC now owns 239 shares of the Internet television network’s stock worth $320,000 after buying an additional 8 shares during the period. Unified Investment Management grew its stake in Netflix by 1.7% during the second quarter. Unified Investment Management now owns 474 shares of the Internet television network’s stock worth $635,000 after buying an additional 8 shares during the period. Plancorp LLC increased its position in shares of Netflix by 0.6% in the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network’s stock worth $1,711,000 after acquiring an additional 8 shares in the last quarter. Five Oceans Advisors raised its stake in shares of Netflix by 1.1% in the 2nd quarter. Five Oceans Advisors now owns 751 shares of the Internet television network’s stock valued at $1,006,000 after acquiring an additional 8 shares during the period. Finally, Old Port Advisors raised its stake in shares of Netflix by 1.3% in the 2nd quarter. Old Port Advisors now owns 624 shares of the Internet television network’s stock valued at $836,000 after acquiring an additional 8 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms recently commented on NFLX. Rosenblatt Securities reissued a “neutral” rating and issued a $105.00 price objective (down from $152.00) on shares of Netflix in a research note on Monday. Loop Capital reduced their price target on Netflix from $135.00 to $132.50 in a report on Wednesday, October 22nd. Huber Research lowered shares of Netflix to a “buy” rating in a report on Friday, December 5th. TD Cowen cut their price target on shares of Netflix from $145.00 to $142.50 and set a “buy” rating for the company in a report on Tuesday, October 7th. Finally, UBS Group set a $142.00 price objective on Netflix in a research report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $130.87.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.