Roku, Inc. (NASDAQ:ROKU) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Roku has a consensus “Hold” rating from 27 brokerages: 19 analysts recommend holding, seven recommend buying, and one gives a strong-buy rating. The average 12-month price target is $156.17.
• Roku reported quarterly EPS of $1.08, beating the $0.61 consensus estimate, while revenue rose 21.9% year over year to $1.35 billion, above expectations of $1.30 billion.
• The stock opened at $157.49, near its 52-week high of $159.69, while company insiders sold approximately $22.1 million worth of shares over the past three months.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) has earned a consensus rating of "Hold" from the twenty-seven ratings firms that are presently covering the firm, Marketbeat.com reports. Nineteen analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $156.1667.

ROKU has been the topic of several research reports. UBS Group boosted their price target on Roku from $126.00 to $172.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. Citizens Jmp downgraded Roku from a "market outperform" rating to a "hold" rating in a research report on Tuesday, June 16th. Citigroup lifted their price objective on Roku from $120.00 to $157.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. Susquehanna cut Roku from a "positive" rating to a "neutral" rating and set a $160.00 price objective on the stock. in a research report on Tuesday, June 16th. Finally, KeyCorp lowered Roku from an "overweight" rating to a "sector weight" rating in a research note on Monday, June 15th.

Roku Price Performance

Shares of Roku stock opened at $157.49 on Friday. The company has a market cap of $23.37 billion, a PE ratio of 67.30 and a beta of 2.01. The firm has a fifty day moving average price of $144.45 and a two-hundred day moving average price of $119.95. Roku has a fifty-two week low of $78.53 and a fifty-two week high of $159.69.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. The company had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business's revenue was up 21.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.07 EPS. Analysts expect that Roku will post 2.82 earnings per share for the current fiscal year.

Insider Activity

In other Roku news, CAO Matthew C. Banks sold 552 shares of the business's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $146.25, for a total value of $80,730.00. Following the sale, the chief accounting officer owned 6,619 shares of the company's stock, valued at $968,028.75. The trade was a 7.70% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $157.11, for a total transaction of $1,099,770.00. Following the completion of the transaction, the chief financial officer owned 65,963 shares of the company's stock, valued at approximately $10,363,446.93. This represents a 9.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 162,452 shares of company stock valued at $22,052,982. 13.45% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ROKU. AQR Capital Management LLC boosted its holdings in Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company's stock valued at $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock worth $192,868,000 after buying an additional 1,419,772 shares in the last quarter. Fred Alger Management LLC raised its holdings in shares of Roku by 7,087.7% in the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock worth $154,212,000 after buying an additional 1,401,664 shares in the last quarter. Norges Bank bought a new position in shares of Roku during the 4th quarter worth approximately $92,808,000. Finally, Janus Henderson Group PLC lifted its position in shares of Roku by 1,320.4% during the 1st quarter. Janus Henderson Group PLC now owns 834,619 shares of the company's stock worth $78,967,000 after buying an additional 775,861 shares during the period. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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