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

Key Points

• Roku, Inc. has received a consensus rating of "Moderate Buy" from twenty-eight analysts, with a twelve-month average price target of $101.33.
• In recent trading, Roku stock opened at $96.29 and has a market capitalization of $14.19 billion.
• CEO Anthony J. Wood sold 25,000 shares of Roku stock for approximately $2.35 million on October 10th, contributing to significant insider sales over the past three months.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-eight analysts that are presently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation, seventeen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $101.3333.

ROKU has been the subject of a number of research reports. Wedbush reiterated an "outperform" rating and set a $100.00 price objective on shares of Roku in a research report on Monday, July 28th. Needham & Company LLC reaffirmed a "buy" rating and issued a $110.00 price objective on shares of Roku in a research note on Wednesday, October 1st. Guggenheim increased their price target on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Citigroup increased their price target on Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a research note on Thursday, September 18th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Roku in a research note on Saturday.

Roku Trading Down 2.0%

Roku stock opened at $96.29 on Friday. The business's fifty day simple moving average is $97.05 and its two-hundred day simple moving average is $83.95. Roku has a 12 month low of $52.43 and a 12 month high of $107.25. The company has a market capitalization of $14.19 billion, a price-to-earnings ratio of -229.26, a price-to-earnings-growth ratio of 11.35 and a beta of 2.13.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, topping the consensus estimate 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 the consensus estimate of $1.07 billion. During the same period in the previous year, the company posted ($0.18) earnings per share. The company's revenue for the quarter was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, equities research analysts predict that Roku will post -0.3 EPS for the current year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction on Friday, October 10th. The stock was sold at an average price of $94.01, for a total transaction of $2,350,250.00. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 3,000 shares of the firm's stock in a transaction on Wednesday, October 15th. The stock was sold at an average price of $95.82, for a total value of $287,460.00. Following the transaction, the chief financial officer owned 80,420 shares in the company, valued at $7,705,844.40. The trade was a 3.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 328,331 shares of company stock worth $32,640,556 in the last three months. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Beaird Harris Wealth Management LLC purchased a new stake in shares of Roku in the first quarter worth about $30,000. Banque Transatlantique SA acquired a new position in shares of Roku during the first quarter valued at approximately $28,000. Rakuten Securities Inc. raised its holdings in shares of Roku by 55.6% during the second quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock valued at $39,000 after acquiring an additional 158 shares during the last quarter. Golden State Wealth Management LLC grew its position in shares of Roku by 125.4% in the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after purchasing an additional 247 shares in the last quarter. Finally, JFS Wealth Advisors LLC grew its position in shares of Roku by 327.1% in the second quarter. JFS Wealth Advisors LLC now owns 457 shares of the company's stock valued at $40,000 after purchasing an additional 350 shares in the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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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