Citizens Jmp Reaffirms Market Outperform Rating for Roku (NASDAQ:ROKU)

Key Points

• Citizens JMP reaffirmed its Market Outperform rating on Roku and kept a $170 price target, implying about 31.6% upside from the current share price.
• Several other analysts also remain positive on Roku, with recent target increases from firms like Piper Sandler, Guggenheim, Morgan Stanley, and Benchmark. Overall, the stock has a Moderate Buy consensus and an average price target of $144.46.
• Roku shares fell 2.1% to $129.21 despite strong recent earnings, including EPS of $0.57 versus a $0.34 estimate and revenue growth of 22.4% year over year. The article also notes insider selling and heavy institutional ownership.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "market outperform" rating reaffirmed by analysts at Citizens Jmp in a report issued on Thursday,Benzinga reports. They currently have a $170.00 target price on the stock. Citizens Jmp's target price suggests a potential upside of 31.57% from the stock's current price.

A number of other research firms also recently commented on ROKU. Piper Sandler increased their target price on Roku from $140.00 to $148.00 and gave the company an "overweight" rating in a research report on Friday, May 1st. Guggenheim increased their target price on Roku from $130.00 to $140.00 and gave the company a "buy" rating in a research report on Friday, May 1st. UBS Group set a $170.00 target price on Roku in a research report on Thursday. Morgan Stanley reiterated an "overweight" rating and set a $150.00 target price on shares of Roku in a research report on Friday, May 1st. Finally, Benchmark increased their target price on Roku from $130.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Twenty-two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $144.46.

Roku Stock Down 2.1%

ROKU stock traded down $2.71 during midday trading on Thursday, hitting $129.21. The company's stock had a trading volume of 397,042 shares, compared to its average volume of 3,091,434. Roku has a 12 month low of $71.20 and a 12 month high of $132.80. The company has a 50 day moving average of $110.96 and a two-hundred day moving average of $104.00. The firm has a market capitalization of $19.05 billion, a price-to-earnings ratio of 97.06 and a beta of 2.04.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The firm had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.20 billion. During the same period in the previous year, the firm posted ($0.19) earnings per share. The business's revenue was up 22.4% compared to the same quarter last year. On average, analysts anticipate that Roku will post 2.41 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In other news, insider Gilbert Fuchsberg sold 9,593 shares of Roku stock in a transaction on Friday, May 1st. The stock was sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the completion of the sale, the insider directly owned 50,863 shares in the company, valued at approximately $6,384,323.76. This trade represents a 15.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 725 shares of Roku stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $125.52, for a total value of $91,002.00. Following the completion of the sale, the chief accounting officer owned 6,222 shares of the company's stock, valued at $780,985.44. The trade was a 10.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 692,038 shares of company stock valued at $76,667,575. 13.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

A number of large investors have recently added to or reduced their stakes in the company. Glenmede Trust Co. NA raised its holdings in Roku by 225.1% in the first quarter. Glenmede Trust Co. NA now owns 245,468 shares of the company's stock worth $23,226,000 after purchasing an additional 169,960 shares in the last quarter. Royal Fund Management LLC bought a new position in Roku in the first quarter worth about $365,000. Bank of America Corp DE raised its holdings in Roku by 5.5% in the first quarter. Bank of America Corp DE now owns 1,082,755 shares of the company's stock worth $102,450,000 after purchasing an additional 56,893 shares in the last quarter. Janus Henderson Group PLC raised its holdings in Roku by 1,320.4% in the first quarter. Janus Henderson Group PLC now owns 834,619 shares of the company's stock worth $78,967,000 after purchasing an additional 775,861 shares in the last quarter. Finally, Bull Harbor Capital LLC purchased a new stake in shares of Roku during the first quarter worth about $344,000. 86.30% of the stock is currently owned by institutional investors.

Roku Company Profile

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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