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

Key Points

• Roku, Inc. (NASDAQ:ROKU) has received a consensus rating of “Moderate Buy” from twenty-seven analysts, with an average twelve-month target price of $101.33.
• Insider transactions include significant sales, with CAO Matthew C. Banks selling 2,180 shares and insider Mustafa Ozgen selling 50,527 shares, indicating a reduction in insider ownership.
• Roku reported revenue of $1.11 billion for the last quarter, exceeding analyst estimates, and posted an earnings per share of $0.07, surpassing expectations by $0.23.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-seven research firms that are currently covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, seven have given a hold recommendation, seventeen have given a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $101.3333.

A number of brokerages have recently weighed in on ROKU. JPMorgan Chase & Co. boosted their price target on Roku from $100.00 to $105.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Wedbush restated an "outperform" rating and set a $100.00 price target on shares of Roku in a research note on Monday, July 28th. Piper Sandler boosted their price target on Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a research note on Thursday, July 10th. Guggenheim upped their target price on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Finally, KeyCorp upped their target price on Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research report on Friday, August 1st.

Insider Transactions at Roku

In related news, CAO Matthew C. Banks sold 2,180 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $97.85, for a total value of $213,313.00. Following the sale, the chief accounting officer owned 5,355 shares in the company, valued at $523,986.75. This represents a 28.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mustafa Ozgen sold 50,527 shares of the company's stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total value of $5,052,700.00. The disclosure for this sale can be found here. Insiders have sold 417,025 shares of company stock valued at $39,662,358 over the last quarter. Company insiders own 13.98% of the company's stock.

Institutional Investors Weigh In On Roku

Large investors have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC lifted its holdings in Roku by 19.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 6,225 shares of the company's stock valued at $463,000 after acquiring an additional 1,024 shares during the period. GAMMA Investing LLC lifted its holdings in Roku by 14,242.3% in the first quarter. GAMMA Investing LLC now owns 67,552 shares of the company's stock valued at $4,758,000 after acquiring an additional 67,081 shares during the period. Parallel Advisors LLC lifted its holdings in Roku by 140.0% in the first quarter. Parallel Advisors LLC now owns 2,141 shares of the company's stock valued at $151,000 after acquiring an additional 1,249 shares during the period. Merit Financial Group LLC lifted its holdings in Roku by 17.2% in the first quarter. Merit Financial Group LLC now owns 10,111 shares of the company's stock valued at $712,000 after acquiring an additional 1,487 shares during the period. Finally, Fluent Financial LLC lifted its holdings in Roku by 99.6% in the first quarter. Fluent Financial LLC now owns 17,727 shares of the company's stock valued at $1,249,000 after acquiring an additional 8,845 shares during the period. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Stock Performance

Shares of ROKU stock opened at $100.13 on Wednesday. Roku has a fifty-two week low of $52.43 and a fifty-two week high of $104.96. The firm has a market capitalization of $14.75 billion, a price-to-earnings ratio of -238.40, a PEG ratio of 14.01 and a beta of 2.05. The stock's 50-day simple moving average is $93.17 and its 200-day simple moving average is $80.32.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results 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 business had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter in the previous year, the firm earned ($0.18) earnings per share. The company's 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. As a group, equities 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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