JMP Securities Issues Positive Forecast for Roku (NASDAQ:ROKU) Stock Price

Key Points

• JMP Securities raised its price target for Roku's stock from $110.00 to $145.00, suggesting a potential upside of 49.24% from its current trading price.
• The company reported a revenue increase of 14.7% year-over-year, achieving earnings of $0.07 per share and surpassing estimates by $0.23.
• A significant portion of Roku's stock, approximately 86.30%, is currently owned by institutional investors, indicating strong investor confidence in the company.

Roku (NASDAQ:ROKU - Get Free Report) had its price target boosted by research analysts at JMP Securities from $110.00 to $145.00 in a report issued on Monday,Benzinga reports. The firm presently has a "market outperform" rating on the stock. JMP Securities' price objective would indicate a potential upside of 49.24% from the stock's current price.

ROKU has been the subject of several other reports. Wells Fargo & Company boosted their price target on Roku from $100.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Guggenheim increased their target price on Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Piper Sandler increased their target price on Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, July 10th. Finally, KeyCorp increased their target price on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $100.36.

Roku Price Performance

ROKU traded up $1.92 during trading on Monday, hitting $97.16. The stock had a trading volume of 883,258 shares, compared to its average volume of 3,930,631. The company has a 50 day moving average price of $90.15 and a 200-day moving average price of $78.08. The firm has a market cap of $14.31 billion, a price-to-earnings ratio of -231.28, a P/E/G ratio of 13.33 and a beta of 2.05. Roku has a one year low of $52.43 and a one year high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.23. The business had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The firm's quarterly revenue was up 14.7% on a year-over-year basis. During the same period in the previous year, the company posted ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts predict that Roku will post -0.3 EPS for the current fiscal year.

Insider Transactions at Roku

In other Roku news, insider Charles Collier sold 212,559 shares of the company's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $95.00, for a total value of $20,193,105.00. Following the completion of the transaction, the insider owned 200 shares of the company's stock, valued at $19,000. This represents a 99.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Dan Jedda sold 3,000 shares of the company's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $89.07, for a total value of $267,210.00. Following the completion of the transaction, the chief financial officer directly owned 73,132 shares of the company's stock, valued at approximately $6,513,867.24. The trade was a 3.94% decrease in their position. The disclosure for this sale can be found here. Insiders sold 343,588 shares of company stock worth $31,759,978 in the last 90 days. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently made changes to their positions in the stock. American Trust bought a new position in shares of Roku during the second quarter worth about $213,000. Marex Group plc bought a new position in shares of Roku during the second quarter worth about $2,538,000. Advisory Services Network LLC raised its position in shares of Roku by 5.5% during the second quarter. Advisory Services Network LLC now owns 22,146 shares of the company's stock worth $2,085,000 after acquiring an additional 1,162 shares during the last quarter. State of Wyoming boosted its position in shares of Roku by 353.3% during the 2nd quarter. State of Wyoming now owns 10,448 shares of the company's stock valued at $918,000 after purchasing an additional 8,143 shares in the last quarter. Finally, Hudson Bay Capital Management LP boosted its position in shares of Roku by 1,417.2% during the 2nd quarter. Hudson Bay Capital Management LP now owns 384,000 shares of the company's stock valued at $33,750,000 after purchasing an additional 358,690 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors.

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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