Roku, Inc. (NASDAQ:ROKU) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analyst consensus on Roku is “Hold.” Of 27 analysts covering the stock, 17 recommend holding and 10 recommend buying, with an average 12-month price target of $155.13.
• Recent analyst actions were mixed: Citigroup and Wells Fargo raised their price targets, while Citizens JMP downgraded Roku to “Hold” and KeyCorp lowered its rating to “Sector Weight.”
• Roku shares opened at $142.92, near their 52-week high, after the company beat quarterly earnings and revenue expectations; revenue increased 22.4% year over year. Insiders sold about $30.6 million of stock over the past 90 days, while institutional investors own 86.3% of shares.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) has been given an average recommendation of "Hold" by the twenty-seven ratings firms that are presently covering the stock, Marketbeat Ratings reports. Seventeen investment analysts have rated the stock with a hold rating and ten have issued a buy rating on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $155.1250.

ROKU has been the topic of several recent research reports. UBS Group set a $160.00 price target on shares of Roku in a report on Monday, June 15th. Citigroup raised their target price on Roku from $120.00 to $157.00 and gave the stock a "neutral" rating in a report on Friday, July 17th. Citizens Jmp downgraded Roku from a "market outperform" rating to a "hold" rating in a report on Tuesday, June 16th. KeyCorp lowered shares of Roku from an "overweight" rating to a "sector weight" rating in a report on Monday, June 15th. Finally, Wells Fargo & Company lifted their price objective on shares of Roku from $137.00 to $167.00 and gave the company an "overweight" rating in a report on Friday, May 1st.

Insider Buying and Selling

In other news, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $140.65, for a total value of $281,300.00. Following the sale, the director directly owned 9,629 shares of the company's stock, valued at $1,354,318.85. The trade was a 17.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 554 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $138.88, for a total transaction of $76,939.52. Following the sale, the chief accounting officer directly owned 7,171 shares of the company's stock, valued at $995,908.48. The trade was a 7.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 236,499 shares of company stock worth $30,582,963 in the last 90 days. 13.45% of the stock is owned by insiders.

Institutional Trading of Roku

Large investors have recently added to or reduced their stakes in the stock. Jefferies Financial Group Inc. purchased a new position in Roku during the fourth quarter worth about $1,345,000. Moran Wealth Management LLC purchased a new stake in shares of Roku in the 1st quarter valued at approximately $2,990,000. MH & Associates Securities Management Corp ADV acquired a new stake in shares of Roku during the 4th quarter worth approximately $2,398,000. Katamaran Capital LLP raised its position in shares of Roku by 90.8% during the 1st quarter. Katamaran Capital LLP now owns 52,548 shares of the company's stock valued at $4,972,000 after buying an additional 25,002 shares during the period. Finally, California Public Employees Retirement System lifted its holdings in Roku by 14.8% in the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company's stock valued at $24,674,000 after acquiring an additional 33,593 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Stock Up 0.7%

Shares of NASDAQ ROKU opened at $142.92 on Tuesday. Roku has a 52 week low of $78.53 and a 52 week high of $148.88. The business's 50 day moving average price is $134.77 and its 200 day moving average price is $113.91. The firm has a market cap of $21.07 billion, a P/E ratio of 107.46 and a beta of 2.01.

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