JPMorgan Chase & Co. Issues Positive Forecast for Roku (NASDAQ:ROKU) Stock Price

Key Points

• JPMorgan Chase & Co. raised its price target for Roku stock from $100.00 to $105.00, indicating a potential upside of 30.43% from the previous closing price.
• Multiple brokerages have provided updated ratings for Roku, with Rosenblatt Securities and Guggenheim increasing their targets significantly, while Evercore ISI lowered its target.
• Roku's recent quarterly earnings report showed positive revenue growth of 14.7%, exceeding analyst expectations with $1.11 billion in revenue.

Roku (NASDAQ:ROKU - Get Free Report) had its price target lifted by analysts at JPMorgan Chase & Co. from $100.00 to $105.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 30.43% from the company's previous close.

Several other brokerages have also commented on ROKU. Rosenblatt Securities increased their price target on shares of Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a research note on Friday. Evercore ISI dropped their price target on shares of Roku from $105.00 to $80.00 and set an "in-line" rating on the stock in a research note on Friday, May 2nd. Guggenheim increased their price target on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Friday. JMP Securities increased their price target on shares of Roku from $95.00 to $110.00 and gave the stock a "market outperform" rating in a research note on Monday, July 21st. Finally, Susquehanna increased their price target on shares of Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a research note on Friday. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, nineteen have issued a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $98.96.

Roku Stock Performance

Shares of NASDAQ:ROKU traded down $13.66 during mid-day trading on Friday, hitting $80.50. The stock had a trading volume of 9,512,396 shares, compared to its average volume of 3,955,775. The company has a market cap of $11.75 billion, a PE ratio of -110.33 and a beta of 2.12. The company's 50 day moving average is $83.07 and its 200-day moving average is $76.81. Roku has a 12-month low of $48.33 and a 12-month high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.23. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative net margin of 2.49% and a negative return on equity of 4.29%. The company's revenue for the quarter was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.18) EPS. On average, equities research analysts predict that Roku will post -0.3 EPS for the current fiscal year.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 3,000 shares of the firm's stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $90.20, for a total transaction of $270,600.00. Following the completion of the transaction, the chief financial officer directly owned 76,132 shares of the company's stock, valued at approximately $6,867,106.40. This trade represents a 3.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charles Collier sold 212,559 shares of the firm's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the transaction, the insider directly owned 200 shares of the company's stock, valued at $19,000. The trade was a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 308,873 shares of company stock valued at $28,076,913. Company insiders own 13.98% 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 business. Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Roku during the 1st quarter worth about $6,026,000. Jacobs Levy Equity Management Inc. increased its position in Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock valued at $96,402,000 after acquiring an additional 1,082,548 shares in the last quarter. Geode Capital Management LLC increased its position in Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock valued at $159,353,000 after acquiring an additional 56,820 shares in the last quarter. Lecap Asset Management Ltd. acquired a new stake in Roku in the 1st quarter valued at about $511,000. Finally, J. Goldman & Co LP increased its position in Roku by 973.1% in the 4th quarter. J. Goldman & Co LP now owns 354,326 shares of the company's stock valued at $26,341,000 after acquiring an additional 321,307 shares in the last quarter. 86.30% of the stock is owned by institutional investors.

About Roku

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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