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

Key Points

• Roku, Inc. has received a consensus rating of “Moderate Buy” from twenty-eight research firms, with an average 12-month price target of $98.96.
• Insider selling has been significant, with CFO Dan Jedda and CEO Anthony J. Wood offloading shares, leading to a 60.33% decrease in the CEO's ownership.
• Roku reported better than expected earnings for the quarter with a revenue of $1.11 billion, surpassing estimates of $1.07 billion, which reflects a 14.7% year-over-year increase.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the twenty-eight research firms that are presently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, six have assigned a hold rating, nineteen have assigned a buy rating and two have given a strong buy rating to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $98.96.

Several equities research analysts have weighed in on ROKU shares. Piper Sandler raised their price target on Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, July 10th. Susquehanna increased their price objective on shares of Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research report on Friday, August 1st. Wells Fargo & Company lifted their target price on shares of Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Guggenheim boosted their target price on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Wall Street Zen upgraded shares of Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 3,000 shares of the 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 transaction, the chief financial officer directly owned 73,132 shares of the company's stock, valued at approximately $6,513,867.24. This represents a 3.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $82.42, for a total value of $2,060,500.00. Following the completion of the transaction, the chief executive officer owned 16,441 shares of the company's stock, valued at approximately $1,355,067.22. The trade was a 60.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 343,588 shares of company stock valued at $31,759,978 in the last quarter. Insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently bought and sold shares of the business. American Trust acquired a new stake in Roku during the 2nd quarter worth about $213,000. Marex Group plc acquired a new stake in Roku during the second quarter worth about $2,538,000. Advisory Services Network LLC raised its position in Roku by 5.5% during the second quarter. Advisory Services Network LLC now owns 22,146 shares of the company's stock valued at $2,085,000 after acquiring an additional 1,162 shares in the last quarter. State of Wyoming raised its position in Roku by 353.3% during the second quarter. State of Wyoming now owns 10,448 shares of the company's stock valued at $918,000 after acquiring an additional 8,143 shares in the last quarter. Finally, Hudson Bay Capital Management LP lifted its holdings in Roku by 1,417.2% in the second quarter. Hudson Bay Capital Management LP now owns 384,000 shares of the company's stock valued at $33,750,000 after acquiring an additional 358,690 shares during the period. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku Trading Down 2.0%

Shares of ROKU stock opened at $95.24 on Friday. Roku has a 12-month low of $52.43 and a 12-month high of $104.96. The business's fifty day simple moving average is $90.15 and its 200-day simple moving average is $78.28. The company has a market cap of $14.03 billion, a PE ratio of -226.76, a PEG ratio of 13.60 and a beta of 2.05.

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 analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The firm had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter last year, the firm earned ($0.18) EPS. The business's quarterly revenue was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, equities analysts forecast that Roku will post -0.3 earnings per share for the current year.

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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