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

Key Points

• Roku has a consensus analyst rating of “Moderate Buy” from 26 research firms, with 22 buy ratings and 4 holds. The average 1-year price target is about $145.29.
• Recent updates have been broadly positive, including price-target hikes from Wells Fargo, KeyCorp, Pivotal Research, and Susquehanna. The company is also expanding its free ad-supported streaming lineup and launched a $25 bundle with Streaming Stick Plus and Fox One.
• Roku’s latest quarterly results beat expectations, with EPS of $0.57 versus estimates of $0.34 and revenue of $1.25 billion, up 22.4% year over year. Despite that strength, insiders have been selling shares in recent months.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-six research firms that are covering the stock, MarketBeat reports. Four analysts have rated the stock with a hold recommendation and twenty-two have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $145.2917.

A number of research firms have recently commented on ROKU. Wells Fargo & Company upped their price objective on shares of Roku from $137.00 to $167.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. KeyCorp increased their price target on Roku from $140.00 to $150.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Moffett Nathanson reiterated a "neutral" rating and set a $100.00 price objective on shares of Roku in a report on Friday, February 13th. Pivotal Research reaffirmed a "buy" rating and set a $160.00 target price (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Finally, Susquehanna upped their price objective on shares of Roku from $130.00 to $160.00 and gave the stock a "positive" rating in a research report on Friday, May 1st.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to expand its free ad-supported streaming lineup, adding new channels including Sports Illustrated and FIFA Plus, plus four more free channels in June. That supports engagement on The Roku Channel and could improve ad inventory and viewing time. Article Title
• Positive Sentiment: The company also launched a $25 bundle pairing the Streaming Stick Plus with Fox One, which may help drive device sales and keep Roku’s ecosystem competitive. Article Title
• Positive Sentiment: Roku has been benefiting from a bullish narrative around its growing household reach and stronger live-sports positioning, which investors may see as supportive of future ad and platform revenue. Article Title

Insider Activity at Roku

In other Roku news, insider Gilbert Fuchsberg sold 9,593 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the completion of the transaction, the insider directly owned 50,863 shares of the company's stock, valued at approximately $6,384,323.76. This represents a 15.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 15,000 shares of the stock in a transaction on Monday, March 16th. The stock was sold at an average price of $94.23, for a total value of $1,413,450.00. Following the transaction, the chief financial officer owned 85,115 shares of the company's stock, valued at $8,020,386.45. The trade was a 14.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 696,631 shares of company stock worth $77,636,680 in the last ninety days. Corporate insiders own 13.45% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Blue Trust Inc. boosted its holdings in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company's stock worth $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC purchased a new position in Roku in the 4th quarter worth approximately $26,000. Bayban grew its position in Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after acquiring an additional 260 shares in the last quarter. WPG Advisers LLC purchased a new position in shares of Roku in the 4th quarter worth about $31,000. Finally, Safe Harbor Fiduciary LLC bought a new position in Roku during the fourth quarter valued at approximately $31,000. 86.30% of the stock is owned by institutional investors.

Roku Price Performance

NASDAQ:ROKU opened at $122.26 on Monday. Roku has a one year low of $73.91 and a one year high of $133.46. The company has a market cap of $18.02 billion, a PE ratio of 91.93 and a beta of 2.06. The firm's 50 day simple moving average is $115.32 and its 200 day simple moving average is $105.21.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the prior year, the business posted ($0.19) earnings per share. Roku's quarterly revenue was up 22.4% on a year-over-year basis. Equities research analysts expect that Roku will post 2.41 EPS for the current year.

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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