Roku (NASDAQ:ROKU) Earns Neutral Rating from Seaport Research Partners

Key Points

• Seaport Research Partners reaffirmed its “neutral” rating on Roku, while the broader analyst consensus remains “Hold,” with an average price target of $155.75.
• Roku shares opened at $150.07, near their 52-week high of $150.61, with a market capitalization of approximately $22.12 billion and a high price-to-earnings ratio of 112.84.
• Insiders have sold 226,733 shares worth about $29.9 million over the past 90 days under pre-arranged trading plans, while institutional investors own 86.3% of Roku’s stock.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "neutral" rating reissued by analysts at Seaport Research Partners in a research note issued to investors on Friday, MarketBeat Ratings reports.

A number of other research analysts have also recently weighed in on ROKU. Citizens Jmp cut shares of Roku from a "market outperform" rating to a "hold" rating in a research note on Tuesday, June 16th. Jefferies Financial Group lowered shares of Roku from a "buy" rating to a "hold" rating and set a $160.00 price target for the company. in a research note on Monday, June 15th. William Blair downgraded Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. Rosenblatt Securities raised their target price on Roku from $150.00 to $160.00 and gave the stock a "buy" rating in a research report on Tuesday, June 16th. Finally, Piper Sandler cut Roku from an "overweight" rating to a "neutral" rating and upped their price target for the company from $148.00 to $160.00 in a research report on Tuesday, June 16th. Nine investment analysts have rated the stock with a Buy rating and eighteen have assigned a Hold rating to the stock. According to MarketBeat.com, Roku has a consensus rating of "Hold" and an average target price of $155.75.

Roku Price Performance

NASDAQ ROKU opened at $150.07 on Friday. The business's fifty day moving average is $137.93 and its 200-day moving average is $116.04. The stock has a market capitalization of $22.12 billion, a price-to-earnings ratio of 112.84 and a beta of 2.01. Roku has a one year low of $78.53 and a one year high of $150.61.

Insider Activity

In other news, insider Mustafa Ozgen sold 10,194 shares of the stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $144.00, for a total value of $1,467,936.00. Following the sale, the insider directly owned 19,185 shares of the company's stock, valued at approximately $2,762,640. This represents a 34.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $143.87, for a total transaction of $1,007,090.00. Following the sale, the chief financial officer directly owned 79,963 shares in the company, valued at $11,504,276.81. This trade represents a 8.05% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 226,733 shares of company stock valued at $29,862,532. 13.45% of the stock is currently owned by insiders.

Institutional Trading of Roku

A number of large investors have recently modified their holdings of ROKU. Bank of New York Mellon Corp bought a new position in shares of Roku in the second quarter worth approximately $105,216,000. Ballast Inc. bought a new position in shares of Roku in the 2nd quarter worth $222,000. Handelsbanken Fonder AB increased its holdings in shares of Roku by 12.5% in the 2nd quarter. Handelsbanken Fonder AB now owns 41,400 shares of the company's stock worth $5,719,000 after buying an additional 4,600 shares during the last quarter. Contravisory Investment Management Inc. purchased a new stake in shares of Roku during the 2nd quarter valued at $1,184,000. Finally, Legacy Wealth Asset Management LLC bought a new stake in shares of Roku during the 2nd quarter worth $325,000. Institutional investors own 86.30% of the company's stock.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion analyst estimate. Earnings were about $1.08 per diluted share—compared with $0.07 a year earlier—and substantially exceeded consensus expectations. Reuters Roku earnings report
• Positive Sentiment: The company’s platform performance was a key catalyst: advertising revenue reportedly increased 25%, while subscriptions rose 26%. Stronger monetization and user engagement support Roku’s higher-margin advertising business and helped drive the quarterly revenue beat. MediaPost Roku advertising and subscriptions report
• Positive Sentiment: The results exceeded expectations on both earnings and revenue, with reported surprises of approximately 93% and 4%, respectively. That performance reinforces the investment case for Roku’s advertising-led growth as consumers continue shifting from traditional television to streaming. Yahoo Finance Roku earnings estimates report
• Neutral Sentiment: Roku will not provide financial guidance or hold an earnings call because Fox has agreed to acquire the company for approximately $22 billion. The transaction provides a valuation reference and strategic support, but leaves investors with less visibility into Roku’s standalone outlook. Roku second-quarter financial results
• Negative Sentiment: Several executives and directors sold shares under pre-arranged Rule 10b5-1 plans, including President Charles Collier’s sale of roughly $3 million. The planned nature of the trades limits their significance, but insider selling may weigh modestly on sentiment after the stock approached its 52-week high. Motley Fool insider sale report
• Negative Sentiment: At a market capitalization above $22 billion and a triple-digit price-to-earnings ratio, Roku remains valued for substantial future growth. The lack of guidance and execution risks surrounding the Fox deal could therefore produce volatility if growth slows or the acquisition timeline changes.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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