Brean Capital Believes NFLX Still Has Room to Grow

By Austin Angelo

In a report released today, Mike Burton from Brean Capital reiterated a Buy rating on Netflix (NASDAQ: NFLX). The company’s shares opened today at $126.24, close to its 52-week high of $129.29.

According to TipRanks.com, Burton is a 5-star analyst with an average return of 12.3% and a 63.1% success rate. Burton covers the Technology sector, focusing on stocks such as Integrated Device Tech, Himax Technologies, and Skyworks Solutions.

Currently, the analyst consensus on Netflix is Moderate Buy and the average price target is $127.96, representing a 1.4% upside.

In a report issued on December 15, Piper Jaffray also reiterated a Buy rating on the stock with a $138 price target.

Netflix’s market cap is currently $53.78B and has a P/E ratio of 338.73. The company has a book value ratio of 21.2675.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NFLX in relation to earlier this year. Most recently, in August 2016, Jay Hoag, a Director at NFLX bought 300,000 shares for a total of $28,291,000.

Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through the following segments: Domestic streaming, International streaming and Domestic DVD. Netflix obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. It markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships. Netflix was founded by Marc Randolph and Wilmot Reed Hastings Jr., on August 29, 1997 and is headquartered in Los Gatos, CA.