Roku, Inc. (NASDAQ:ROKU) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Roku, Inc. has received an average rating of "Moderate Buy" from twenty-eight research firms, with target prices averaging $98.96.
• Insider trading indicates significant activity, with CFO Dan Jedda and another insider selling a total of 312,233 shares valued at approximately $28.36 million in the last three months.
• Roku recently reported quarterly earnings that surpassed expectations, with a profit of $0.07 per share compared to an anticipated loss of ($0.16).

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) have been given a consensus rating of "Moderate Buy" by the twenty-eight research firms that are currently covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, eighteen have issued a buy rating and two have assigned a strong buy rating to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $98.96.

Several analysts have recently weighed in on the stock. Susquehanna raised their price objective on shares of Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a report on Friday, August 1st. KeyCorp raised their price objective on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and raised their price objective for the stock from $80.00 to $100.00 in a report on Tuesday, June 17th. Piper Sandler raised their price objective on shares of Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, July 10th. Finally, JMP Securities raised their price objective on shares of Roku from $95.00 to $110.00 and gave the stock a "market outperform" rating in a report on Monday, July 21st.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $90.20, for a total value of $270,600.00. Following the sale, the chief financial officer directly owned 76,132 shares in the company, valued at approximately $6,867,106.40. This trade represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Charles Collier sold 212,559 shares of the stock in a transaction on 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 completion of the sale, the insider owned 200 shares in the company, valued at approximately $19,000. This trade represents a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 312,233 shares of company stock valued at $28,362,681 in the last three months. Insiders own 13.98% of the company's stock.

Institutional Investors Weigh In On Roku

Several hedge funds have recently bought and sold shares of the company. United Advisor Group LLC raised its holdings in Roku by 0.9% in the fourth quarter. United Advisor Group LLC now owns 14,430 shares of the company's stock worth $1,073,000 after purchasing an additional 130 shares during the period. DekaBank Deutsche Girozentrale raised its holdings in shares of Roku by 0.9% during the second quarter. DekaBank Deutsche Girozentrale now owns 15,550 shares of the company's stock worth $1,369,000 after acquiring an additional 142 shares during the period. Cerity Partners LLC raised its holdings in shares of Roku by 0.5% during the fourth quarter. Cerity Partners LLC now owns 26,679 shares of the company's stock worth $1,984,000 after acquiring an additional 145 shares during the period. Nissay Asset Management Corp Japan ADV raised its holdings in shares of Roku by 1.0% during the first quarter. Nissay Asset Management Corp Japan ADV now owns 15,575 shares of the company's stock worth $1,097,000 after acquiring an additional 160 shares during the period. Finally, True Vision MN LLC raised its holdings in shares of Roku by 3.3% during the second quarter. True Vision MN LLC now owns 5,544 shares of the company's stock worth $487,000 after acquiring an additional 179 shares during the period. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Trading Down 1.5%

NASDAQ ROKU opened at $81.99 on Tuesday. The firm has a market cap of $12.08 billion, a price-to-earnings ratio of -195.21, a PEG ratio of 11.65 and a beta of 2.05. The company has a 50 day moving average of $85.18 and a 200-day moving average of $77.17. Roku has a 1-year low of $52.43 and a 1-year high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate of ($0.16) by $0.23. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The company's revenue was up 14.7% on a year-over-year basis. During the same quarter last year, the business posted ($0.18) earnings per share. On average, analysts forecast that Roku will post -0.3 earnings per share for the current year.

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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