Roku (NASDAQ:ROKU) Earns "Market Perform" Rating from Citizens Jmp

Key Points

• Citizens JMP reaffirmed Roku’s rating at “market perform,” while other analysts remain mixed, leaving the stock with a consensus “Moderate Buy” and an average target price of $152.36.
• Roku recently reported strong quarterly results, beating earnings and revenue estimates with EPS of $0.57 and revenue of $1.25 billion, up 22.4% year over year.
• The article also highlights notable insider selling and high institutional ownership, with insiders selling 706,194 shares over the past 90 days and hedge funds owning about 86.3% of the stock.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "market perform" rating reaffirmed by equities research analysts at Citizens Jmp in a research report issued to clients and investors on Tuesday,Benzinga reports.

Several other research analysts have also commented on ROKU. Zacks Research lowered shares of Roku from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Rosenblatt Securities increased their target price on shares of Roku from $150.00 to $160.00 and gave the company a "buy" rating in a research note on Tuesday. Weiss Ratings restated a "hold (c-)" rating on shares of Roku in a report on Friday, May 15th. Guggenheim upped their price target on shares of Roku from $140.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Finally, Morgan Stanley upped their price target on shares of Roku from $150.00 to $170.00 and gave the company an "overweight" rating in a report on Thursday, June 4th. Fourteen investment analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $152.36.

Roku Stock Performance

ROKU stock opened at $140.90 on Tuesday. The firm has a fifty day moving average price of $119.60 and a 200 day moving average price of $106.65. Roku has a fifty-two week low of $77.64 and a fifty-two week high of $148.88. The firm has a market cap of $20.77 billion, a PE ratio of 105.94 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the firm posted ($0.19) earnings per share. Roku's revenue for the quarter was up 22.4% compared to the same quarter last year. On average, equities analysts predict that Roku will post 2.41 EPS for the current year.

Insider Buying and Selling at Roku

In other news, insider Gilbert Fuchsberg sold 4,376 shares of Roku stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $127.26, for a total transaction of $556,889.76. Following the completion of the sale, the insider directly owned 51,099 shares in the company, valued at approximately $6,502,858.74. This trade represents a 7.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Charles Collier sold 20,537 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $124.94, for a total transaction of $2,565,892.78. Following the sale, the insider directly owned 15,200 shares of the company's stock, valued at $1,899,088. This represents a 57.47% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 706,194 shares of company stock valued at $80,756,499. 13.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently modified their holdings of ROKU. Blue Trust Inc. raised its stake in shares of Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company's stock valued at $25,000 after acquiring an additional 204 shares in the last quarter. Aventura Private Wealth LLC purchased a new stake in shares of Roku in the fourth quarter valued at approximately $26,000. Bayban grew its stake in Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after purchasing an additional 260 shares in the last quarter. WPG Advisers LLC purchased a new position in Roku during the 4th quarter worth $31,000. Finally, Safe Harbor Fiduciary LLC purchased a new position in Roku during the 4th quarter worth $31,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox Corp. agreed to buy Roku for about $22 billion, valuing ROKU at $160 per share and signaling a major premium to pre-deal trading levels. Fox to buy streaming pioneer Roku in a $22 billion deal
• Positive Sentiment: Wall Street has started updating its outlook on Roku following the acquisition announcement, including a higher price target from Citizens JMP, reinforcing investor interest in the stock. Roku price target raised by Citizens JMP
• Positive Sentiment: Roku saw unusually large call-option buying, suggesting traders are positioning for continued upside or more deal-related volatility. Wall Street sets Roku stock price target amid $22B acquisition
• Neutral Sentiment: The acquisition is drawing legal scrutiny, with shareholder-law firms investigating whether Roku shareholders are getting a fair price, which may add headline risk but does not yet change the deal itself. Shareholder alert: investigation of Roku related to sale to Fox
• Neutral Sentiment: Coverage around the merger highlights strategic benefits for Fox’s streaming and advertising ambitions, but investor reaction appears mixed because the deal price may leave limited immediate upside beyond the offer value. Roku Stock Rises. Why $22 Billion Fox Sale May Disappoint.

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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