Investors Buy Large Volume of Netflix Call Options (NASDAQ:NFLX)

Netflix, Inc. (NASDAQ:NFLXGet Free Report) was the target of unusually large options trading on Wednesday. Traders purchased 916,307 call options on the stock. This represents an increase of 95% compared to the typical daily volume of 470,646 call options.

Netflix Stock Up 5.5%

Shares of NASDAQ:NFLX traded up $4.30 during mid-day trading on Wednesday, reaching $82.34. 35,533,820 shares of the stock were exchanged, compared to its average volume of 47,723,012. The stock’s 50 day simple moving average is $86.22 and its 200-day simple moving average is $105.08. Netflix has a one year low of $75.01 and a one year high of $134.12. The company has a market cap of $347.66 billion, a P/E ratio of 32.57, a P/E/G ratio of 1.35 and a beta of 1.71. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51.

Netflix (NASDAQ:NFLXGet Free Report) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business’s quarterly revenue was up 17.6% on a year-over-year basis. During the same period last year, the business earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, equities research analysts predict that Netflix will post 24.58 EPS for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on NFLX. New Street Research reduced their price target on shares of Netflix from $100.00 to $96.00 and set a “neutral” rating on the stock in a research report on Thursday, January 22nd. Piper Sandler reiterated a “positive” rating and set a $103.00 target price (down from $140.00) on shares of Netflix in a report on Wednesday, January 21st. Huber Research cut Netflix to a “buy” rating in a research note on Friday, December 5th. Rothschild & Co Redburn set a $120.00 price target on Netflix in a research report on Wednesday, January 21st. Finally, Citic Securities cut their price objective on Netflix from $109.00 to $95.00 and set a “hold” rating on the stock in a report on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and sixteen have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $116.08.

Get Our Latest Stock Analysis on NFLX

Insider Buying and Selling at Netflix

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $83.24, for a total transaction of $2,273,450.88. Following the transaction, the chief executive officer owned 122,140 shares in the company, valued at approximately $10,166,933.60. This trade represents a 18.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Spencer Adam Neumann sold 9,248 shares of the company’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $81.27, for a total value of $751,584.96. Following the completion of the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,996,669.49. This trade represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,399,163 shares of company stock valued at $129,899,103 over the last quarter. 1.37% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after buying an additional 351,493,659 shares in the last quarter. State Street Corp increased its stake in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC lifted its position in shares of Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the period. Capital World Investors lifted its position in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Finally, Morgan Stanley grew its holdings in shares of Netflix by 903.0% during the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after purchasing an additional 76,840,318 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

About Netflix

(Get Free Report)

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.

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