Roku (NASDAQ:ROKU) Cut to "Hold" at Wall Street Zen

Key Points

• Roku has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, indicating a shift in analyst sentiment.
• Despite the downgrade, other analysts have increased their price targets for Roku, with Bank of America setting a new target of $110.00, maintaining their "buy" rating.
• Roku reported positive quarterly earnings with $1.11 billion in revenue, exceeding expectations, and a notable earnings per share increase from a loss of ($0.18) to a profit of $0.07.

Roku (NASDAQ:ROKU - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Other equities research analysts have also recently issued reports about the stock. Bank of America upped their price target on shares of Roku from $100.00 to $110.00 and gave the company a "buy" rating in a report on Thursday, July 3rd. Susquehanna upped their price target on shares of Roku from $85.00 to $110.00 and gave the company a "positive" rating in a report on Friday, August 1st. Rosenblatt Securities upped their price target on shares of Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a report on Friday, August 1st. JMP Securities restated a "market outperform" rating and set a $145.00 price target on shares of Roku in a report on Thursday, October 2nd. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $110.00 price objective on shares of Roku in a research report on Wednesday, October 1st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Roku has an average rating of "Moderate Buy" and a consensus target price of $101.33.

Roku Price Performance

ROKU stock opened at $92.02 on Friday. Roku has a 52-week low of $52.43 and a 52-week high of $107.25. The company has a 50-day moving average of $94.90 and a two-hundred day moving average of $81.72. The stock has a market capitalization of $13.56 billion, a price-to-earnings ratio of -219.10, a price-to-earnings-growth ratio of 13.60 and a beta of 2.13.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The company had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same period in the prior year, the company earned ($0.18) earnings per share. The business's quarterly revenue 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. Equities analysts expect that Roku will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Mustafa Ozgen sold 50,527 shares of the stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total value of $5,052,700.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charles Collier sold 212,559 shares of the stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the completion of the transaction, the insider directly owned 200 shares of the company's stock, valued at $19,000. This trade represents a 99.91% decrease in their position. The disclosure for this sale can be found here. Insiders sold 518,890 shares of company stock valued at $50,737,151 over the last quarter. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ROKU. Tableaux LLC acquired a new position in Roku in the second quarter worth about $1,746,000. Acadian Asset Management LLC raised its position in Roku by 456.7% in the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock worth $134,222,000 after purchasing an additional 1,563,449 shares in the last quarter. Duquesne Family Office LLC raised its position in Roku by 123.0% in the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock worth $96,723,000 after purchasing an additional 606,900 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in Roku by 38,431.7% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company's stock worth $34,470,000 after purchasing an additional 488,083 shares in the last quarter. Finally, AQR Capital Management LLC raised its position in Roku by 491.5% in the first quarter. AQR Capital Management LLC now owns 562,027 shares of the company's stock worth $38,943,000 after purchasing an additional 467,005 shares in the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.