Roku, Inc. (NASDAQ:ROKU) Stock Has Consensus Target Price of $156.17 According to Brokerages

Key Points

• Analysts broadly rate Roku “Hold”: Of 27 brokerages, 18 recommend hold, eight buy, and one strong buy. Their average 12-month price target is $156.17.
• Quarterly results beat expectations: Roku reported revenue of $1.50 billion, up 24.1% year over year, and earnings per share of $1.20 versus the $0.55 consensus estimate.
• Recent analyst actions were mixed: Weiss Ratings upgraded Roku to buy, while Wells Fargo, Guggenheim, and Seaport Research Partners lowered their ratings or moved to neutral.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) have earned an average recommendation of "Hold" from the twenty-seven research firms that are currently covering the firm, MarketBeat reports. Eighteen equities research analysts have rated the stock with a hold recommendation, eight have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $156.17.

Several equities research analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Roku from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday. Wells Fargo & Company downgraded shares of Roku from an "overweight" rating to an "equal weight" rating and cut their price target for the company from $167.00 to $165.00 in a report on Friday, August 14th. JPMorgan Chase & Co. assumed coverage on shares of Roku in a research report on Monday, August 24th. They issued a "neutral" rating and a $160.00 price objective on the stock. Guggenheim downgraded shares of Roku from a "buy" rating to a "neutral" rating and raised their price objective for the stock from $145.00 to $160.00 in a research note on Friday, August 7th. Finally, Seaport Research Partners downgraded shares of Roku from a "buy" rating to a "neutral" rating in a research note on Friday, August 7th.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku recently reported quarterly revenue of $1.50 billion, up 24.1% year over year and above estimates; EPS of $1.20 also topped the $0.55 consensus. The strong results provide a fundamental tailwind for the stock. Roku earnings story
• Positive Sentiment: Roku moved above its 20-day moving average after finding support, a technical signal the cited analysis views as indicating short-term bullish momentum. The article’s “golden cross” wording refers to this moving-average breakout, rather than establishing a longer-term trend by itself. Technical analysis
• Neutral Sentiment: Trading in Roku call options was unusually high, with volume about 179% above its typical level. This indicates increased options activity but does not establish whether investors’ overall outlook is bullish or bearish.
• Neutral Sentiment: A director and the chief accounting officer sold shares under pre-arranged Rule 10b5-1 plans. The transactions may draw attention, but the plans make them less clear as a signal of current insider sentiment. Director sale filing
• Negative Sentiment: Rosenblatt Securities cut its rating on Roku from “buy” to “hold” and set a $160 price target, signaling less optimism about near-term upside. Rosenblatt rating information
• Negative Sentiment: Roku is retiring its popular Aquatic Life screensaver, prompting negative reactions from some users. The customer response could weigh on sentiment, although the likely financial impact is unclear. Screensaver coverage

Roku Price Performance

NASDAQ:ROKU opened at $162.77 on Thursday. The firm has a market capitalization of $24.16 billion, a price-to-earnings ratio of 48.16 and a beta of 2.12. Roku has a 1 year low of $78.53 and a 1 year high of $163.08. The business has a 50 day simple moving average of $155.21 and a 200-day simple moving average of $128.34.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Monday, November 2nd. The company reported $1.20 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.65. Roku had a return on equity of 18.65% and a net margin of 9.34%. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the prior year, the firm posted $0.16 EPS. Roku's quarterly revenue was up 24.1% compared to the same quarter last year. As a group, analysts expect that Roku will post 2.97 earnings per share for the current fiscal year.

Insider Transactions at Roku

In related news, Director Neil Hunt sold 2,000 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $156.17, for a total transaction of $312,340.00. Following the completion of the sale, the director directly owned 9,629 shares of the company's stock, valued at approximately $1,503,760.93. This trade represents a 17.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the business's stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $152.84, for a total value of $1,069,880.00. Following the transaction, the chief financial officer owned 67,811 shares of the company's stock, valued at approximately $10,364,233.24. The trade was a 9.36% decrease in their position. 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 88,028 shares of company stock valued at $13,645,922. Company insiders own 13.45% of the company's stock.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of New York Mellon Corp purchased a new stake in Roku in the 2nd quarter valued at $105,216,000. Contravisory Investment Management Inc. acquired a new stake in Roku during the second quarter worth about $1,184,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Roku during the second quarter worth about $4,474,000. California Public Employees Retirement System raised its stake in Roku by 14.8% during the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company's stock worth $24,674,000 after purchasing an additional 33,593 shares during the period. Finally, Lazard Asset Management LLC raised its stake in Roku by 31.6% during the first quarter. Lazard Asset Management LLC now owns 96,204 shares of the company's stock worth $9,103,000 after purchasing an additional 23,092 shares during the period. Institutional investors own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.

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