Traders Buy High Volume of Put Options on Netflix (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLX) saw unusually large options trading activity on Thursday. Traders acquired 828,879 put options on the company. This is an increase of 163% compared to the typical daily volume of 315,490 put options.

Insiders Place Their Bets

In other Netflix news, CEO Theodore A. Sarandos sold 20,270 shares of the business’s 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 completion of the transaction, the chief executive officer owned 151,680 shares in the company, valued at $16,564,669.44. The trade was a 11.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Cletus R. Willems sold 2,380 shares of the company’s stock in a transaction that occurred on Thursday, November 6th. The shares were sold at an average price of $110.03, for a total value of $261,878.54. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,598,370 shares of company stock valued at $168,251,193 over the last quarter. Corporate insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

A number of large investors have recently added to or reduced their stakes in the company. First Financial Corp IN boosted its stake in Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 243 shares in the last quarter. Imprint Wealth LLC purchased a new stake in shares of Netflix during the 3rd quarter valued at $25,000. Retirement Wealth Solutions LLC acquired a new stake in shares of Netflix in the 3rd quarter worth $28,000. MB Levis & Associates LLC grew its stake in Netflix by 177.8% during the 4th quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock worth $28,000 after buying an additional 192 shares during the last quarter. Finally, Legacy Investment Solutions LLC purchased a new stake in shares of Netflix during the second quarter worth about $31,000. 80.93% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of recent analyst reports. Guggenheim reissued a “buy” rating and set a $145.00 target price on shares of Netflix in a research note on Wednesday, October 22nd. Huber Research cut shares of Netflix to a “buy” rating in a research report on Friday, December 5th. Evercore ISI restated an “outperform” rating and issued a $138.00 target price on shares of Netflix in a research note on Friday, December 5th. Benchmark reaffirmed a “hold” rating on shares of Netflix in a research report on Tuesday. Finally, Rosenblatt Securities reiterated a “neutral” rating and issued a $105.00 price target (down previously from $152.00) 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 given a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $127.91.

Netflix Price Performance

Shares of NFLX opened at $88.05 on Friday. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The company has a 50 day moving average price of $99.41 and a 200-day moving average price of $113.11. Netflix has a fifty-two week low of $82.11 and a fifty-two week high of $134.12. The stock has a market capitalization of $373.10 billion, a PE ratio of 36.78 and a beta of 1.71.

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

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix struck a global deal to stream Sony Pictures films after theatrical windows — adds premium content licensing that supports subscriber value and long-term revenue. Read More.
• Positive Sentiment: Ad-tier momentum remains a bright spot: stronger ad growth and record ad-quarter metrics underpin longer-term monetization upside beyond subscriptions. Read More.
• Positive Sentiment: Some analysts reaffirmed bullish ratings (BMO buy reaffirmed, and an analyst-driven upgrade lifted shares in recent sessions), providing a counterbalance to headline risk. Read More.
• Neutral Sentiment: Q4 earnings on Jan. 20 is the immediate catalyst — analysts expect revenue/earnings roughly in-line but will watch subscriber trends, ad growth and guidance for 2026. Read More.
• Neutral Sentiment: A judge ruled Warner Bros. Discovery doesn’t need to disclose deal details soon to shareholders, keeping some WBD deal details under wraps — this limits near-term transparency but doesn’t block the transaction. Read More.
• Negative Sentiment: Unusual options activity: traders bought ~828,879 put contracts (?163% above average), signaling elevated hedging or bearish bets ahead of earnings and M&A developments.
• Negative Sentiment: Analysts and investors remain concerned about the WBD takeover overhang — reports that Netflix may switch to an all-cash offer raise fears of a near-term cash drain and FY2026 EPS dilution. Read More.
• Negative Sentiment: Price-target cuts and cautious notes (e.g., Wedbush trimmed its target) highlight execution questions and the valuation hit from M&A/legal uncertainty. Read More.

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.