Roku (NASDAQ:ROKU) Earns "Buy" Rating from Rosenblatt Securities

Key Points

• Rosenblatt Securities reaffirmed its “Buy” rating on Roku and set a $160 price target, implying about 4.5% upside from the prior close.
• Analyst sentiment remains mixed: eight analysts rate Roku a Buy and 19 rate it Hold, producing an overall “Hold” consensus with an average target of $156.25.
• Roku recently exceeded quarterly expectations, reporting $1.08 in EPS versus $0.61 expected and $1.35 billion in revenue, up 21.9% year over year.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "buy" rating reaffirmed by stock analysts at Rosenblatt Securities in a research note issued to investors on Monday,Benzinga reports. They currently have a $160.00 price target on the stock. Rosenblatt Securities' price target would suggest a potential upside of 4.50% from the stock's previous close.

A number of other analysts also recently issued reports on the stock. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $160.00 price objective (up from $150.00) on shares of Roku in a report on Tuesday, June 16th. Robert W. Baird reaffirmed a "neutral" rating and set a $160.00 price target on shares of Roku in a research note on Monday, June 15th. Piper Sandler lowered Roku from an "overweight" rating to a "neutral" rating and increased their price objective for the company from $148.00 to $160.00 in a research report on Tuesday, June 16th. Citizens Jmp lowered Roku from a "market outperform" rating to a "hold" rating in a research note on Tuesday, June 16th. Finally, Needham & Company LLC restated a "buy" rating on shares of Roku in a report on Friday. Eight equities research analysts have rated the stock with a Buy rating and nineteen have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $156.25.

Roku Price Performance

NASDAQ ROKU opened at $153.11 on Monday. The stock has a market capitalization of $22.57 billion, a PE ratio of 65.43 and a beta of 2.01. Roku has a 1 year low of $78.53 and a 1 year high of $153.54. The company's 50 day simple moving average is $138.39 and its two-hundred day simple moving average is $116.38.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%.The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the previous year, the firm earned $0.07 earnings per share. Roku's revenue was up 21.9% on a year-over-year basis. On average, research analysts anticipate that Roku will post 2.41 EPS for the current year.

Insiders Place Their Bets

In other news, insider Charles Collier sold 20,538 shares of Roku stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $142.51, for a total transaction of $2,926,870.38. Following the sale, the insider owned 15,200 shares of the company's stock, valued at approximately $2,166,152. The trade was a 57.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $130.00, for a total value of $3,250,000.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 162,452 shares of company stock worth $21,811,132. Company insiders own 13.45% of the company's stock.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently modified their holdings of ROKU. Bayban grew its position in Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company's stock valued at $26,000 after purchasing an additional 260 shares during the last quarter. WPG Advisers LLC bought a new position in shares of Roku during the fourth quarter valued at $31,000. Safe Harbor Fiduciary LLC purchased a new position in Roku in the 4th quarter worth about $31,000. Elevation Wealth Partners LLC boosted its holdings in shares of Roku by 208.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock valued at $44,000 after acquiring an additional 215 shares during the last quarter. Finally, Osbon Capital Management LLC bought a new stake in shares of Roku in the fourth quarter worth approximately $45,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

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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