Roku (NASDAQ:ROKU) Coverage Dropped by Analysts at Wedbush

Key Points

• Wedbush dropped coverage of Roku, having previously rated the stock Neutral.
• Analyst sentiment remains mixed: MarketBeat reports an average Hold rating and a $156.22 average price target, with 8 Buy and 17 Hold ratings.
• Roku beat quarterly earnings expectations, reporting EPS of $1.20 versus $0.55 expected and revenue of $1.50 billion, up 24.1% year over year.

Analysts at Wedbush dropped coverage on shares of Roku (NASDAQ:ROKU - Get Free Report) in a note issued to investors on Tuesday, Benzinga reports. The brokerage had previously set a "neutral" rating on the stock.

A number of other equities research analysts also recently weighed in on ROKU. Needham & Company LLC reiterated a "buy" rating on shares of Roku in a research report on Tuesday, November 3rd. Citigroup increased their price target on Roku from $120.00 to $157.00 and gave the stock a "neutral" rating in a research report on Friday, July 17th. Fox Advisors set a $157.00 price objective on Roku in a research note on Friday, July 17th. Rosenblatt Securities cut Roku from a "buy" rating to a "hold" rating and set a $160.00 price objective for the company. in a report on Tuesday, November 3rd. Finally, JPMorgan Chase & Co. initiated coverage on Roku in a report on Monday, August 24th. They issued a "neutral" rating and a $160.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seventeen have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $156.22.

Roku Stock Down 0.5%

Shares of Roku stock traded down $0.87 during trading on Tuesday, reaching $159.65. The company's stock had a trading volume of 11,519,211 shares, compared to its average volume of 2,596,181. The business's 50-day moving average price is $155.37 and its 200-day moving average price is $129.19. The firm has a market cap of $23.69 billion, a PE ratio of 47.23 and a beta of 2.12. Roku has a 52 week low of $78.53 and a 52 week high of $163.57.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Monday, November 2nd. The company reported $1.20 EPS for the quarter, topping analysts' consensus estimates of $0.55 by $0.65. The business had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.41 billion. Roku had a net margin of 9.34% and a return on equity of 18.65%. Roku's revenue for the quarter was up 24.1% compared to the same quarter last year. During the same period last year, the firm earned $0.16 earnings per share. Equities analysts predict that Roku will post 3.17 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Gilbert Fuchsberg sold 4,824 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $750,807.36. Following the completion of the transaction, the insider directly owned 40,168 shares in the company, valued at approximately $6,251,747.52. The trade was a 10.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mustafa Ozgen sold 3,410 shares of the company's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $530,732.40. Following the sale, the insider directly owned 25,569 shares of the company's stock, valued at approximately $3,979,559.16. This trade represents a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 88,028 shares of company stock worth $13,645,922. 13.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently modified their holdings of the business. Signature Equity Partners LLC boosted its holdings in shares of Roku by 1,225.0% during the 3rd quarter. Signature Equity Partners LLC now owns 212 shares of the company's stock valued at $32,000 after acquiring an additional 196 shares in the last quarter. CX Institutional increased its holdings in Roku by 44.1% in the 3rd quarter. CX Institutional now owns 281 shares of the company's stock worth $43,000 after purchasing an additional 86 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new position in Roku in the 3rd quarter worth about $46,000. Elevation Wealth Partners LLC raised its position in Roku by 208.7% in the second quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock valued at $44,000 after purchasing an additional 215 shares during the last quarter. Finally, Jacobi Capital Management LLC bought a new position in Roku in the third quarter valued at about $89,000. Institutional investors own 86.30% of the company's stock.

About Roku

Roku, Inc provides a streaming platform that connects viewers with television and other digital video content. Its products include streaming players and Roku-branded televisions, as well as the Roku operating system, which the company licenses to television manufacturers.

Roku also operates a platform business that supports streaming services and advertisers. Its offerings include the Roku Channel, an ad-supported streaming service, and tools for distributing content and delivering advertising to viewers.

Founded in 2002 by Anthony Wood, Roku serves customers in the United States and other markets.

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