Guggenheim Boosts Roku (NASDAQ:ROKU) Price Target to $105.00

Key Points

• Guggenheim has increased Roku's price target from $100 to $105, suggesting a potential upside of 26.52% from its current price and maintaining a "buy" rating for the stock.
• Roku's stock recently traded down 11.9% to $82.99, despite reporting positive earnings of $0.07 per share that exceeded analyst estimates.
• Roku has seen significant insider selling, with CEO Anthony J. Wood reducing his stake by 67.65% after selling 25,000 shares at an average price of $89.64.

Roku (NASDAQ:ROKU - Get Free Report) had its price target increased by equities research analysts at Guggenheim from $100.00 to $105.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Guggenheim's price target would indicate a potential upside of 26.52% from the company's current price.

Several other brokerages have also weighed in on ROKU. Redburn Atlantic raised Roku from a "neutral" rating to a "buy" rating and set a $100.00 price objective on the stock in a report on Monday, April 7th. Benchmark reissued a "buy" rating and set a $130.00 price objective on shares of Roku in a report on Friday, May 2nd. Citigroup reissued a "neutral" rating and set a $84.00 price objective (up previously from $68.00) on shares of Roku in a report on Wednesday, June 18th. JPMorgan Chase & Co. lifted their price objective on Roku from $85.00 to $100.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Finally, Wedbush reissued an "outperform" rating and set a $100.00 price objective on shares of Roku in a report on Monday. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, nineteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, Roku currently has an average rating of "Moderate Buy" and an average price target of $97.04.

Roku Trading Down 11.9%

ROKU traded down $11.17 during midday trading on Friday, reaching $82.99. The company's stock had a trading volume of 5,334,182 shares, compared to its average volume of 3,921,380. The stock has a market cap of $12.11 billion, a P/E ratio of -112.95 and a beta of 2.12. The company has a fifty day simple moving average of $83.07 and a 200 day simple moving average of $76.81. Roku has a twelve month low of $48.33 and a twelve month high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter last year, the firm posted ($0.18) EPS. The company's revenue was up 14.7% on a year-over-year basis. Sell-side analysts expect that Roku will post -0.3 earnings per share for the current year.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $89.64, for a total value of $2,241,000.00. Following the completion of the transaction, the chief executive officer owned 11,953 shares in the company, valued at approximately $1,071,466.92. The trade was a 67.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 3,000 shares of the business's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total value of $270,600.00. Following the sale, the chief financial officer owned 76,132 shares of the company's stock, valued at approximately $6,867,106.40. The trade was a 3.79% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 308,873 shares of company stock worth $28,076,913. 13.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently made changes to their positions in ROKU. FMR LLC raised its position in shares of Roku by 31.7% during the fourth quarter. FMR LLC now owns 19,183,942 shares of the company's stock worth $1,426,134,000 after acquiring an additional 4,613,570 shares during the last quarter. Marshall Wace LLP raised its position in shares of Roku by 663.9% during the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock worth $173,644,000 after acquiring an additional 2,030,036 shares during the last quarter. Acadian Asset Management LLC raised its position in shares of Roku by 456.7% during the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock worth $134,222,000 after acquiring an additional 1,563,449 shares during the last quarter. Cadian Capital Management LP bought a new stake in shares of Roku during the fourth quarter worth $87,632,000. Finally, Jacobs Levy Equity Management Inc. raised its position in shares of Roku by 505.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock worth $96,402,000 after acquiring an additional 1,082,548 shares during the last quarter. Institutional investors own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

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