Roku (NASDAQ:ROKU) Given "Market Outperform" Rating at JMP Securities

Key Points

• Roku's stock has been given a "market outperform" rating by JMP Securities, with a price target of $110.00, indicating a potential upside of 14.67% from its previous close.
• Roku reported a 14.7% year-over-year revenue increase of $1.11 billion for the latest quarter, surpassing analysts' expectations of $1.07 billion.
• Insiders have recently sold a significant amount of Roku's stock, with a total sale of 324,873 shares worth approximately $29.7 million over the last 90 days, indicating a potential shift in confidence among executives.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "market outperform" rating reiterated by equities researchers at JMP Securities in a research note issued to investors on Tuesday,Benzinga reports. They presently have a $110.00 price objective on the stock. JMP Securities' price target indicates a potential upside of 14.67% from the stock's previous close.

Several other brokerages have also recently weighed in on ROKU. Citigroup reiterated an "outperform" rating on shares of Roku in a research note on Monday, August 25th. Pivotal Research raised their target price on shares of Roku from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 1st. KeyCorp boosted their price target on Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. UBS Group raised their price objective on Roku from $72.00 to $95.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Finally, Rosenblatt Securities lifted their price objective on Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Roku presently has a consensus rating of "Moderate Buy" and a consensus price target of $98.96.

Roku Stock Performance

NASDAQ:ROKU traded down $0.63 during mid-day trading on Tuesday, hitting $95.93. 375,411 shares of the stock were exchanged, compared to its average volume of 3,941,947. The stock has a market capitalization of $14.13 billion, a price-to-earnings ratio of -228.64, a price-to-earnings-growth ratio of 13.52 and a beta of 2.05. The firm's 50-day simple moving average is $89.23 and its 200 day simple moving average is $78.03. Roku has a fifty-two week low of $52.43 and a fifty-two week high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The company's revenue for the quarter was up 14.7% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts predict that Roku will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $89.64, for a total transaction of $2,241,000.00. Following the completion of the transaction, the chief executive officer owned 11,953 shares of the company's stock, valued at approximately $1,071,466.92. The trade was a 67.65% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Charles Collier sold 212,559 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were sold at an average price of $95.00, for a total value of $20,193,105.00. Following the completion of the sale, the insider directly owned 200 shares in the company, valued at $19,000. This trade represents a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 324,873 shares of company stock worth $29,745,042 over the last 90 days. Corporate insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently added to or reduced their stakes in the stock. Garde Capital Inc. acquired a new stake in Roku in the first quarter valued at approximately $25,000. Banque Transatlantique SA acquired a new position in shares of Roku during the first quarter worth $28,000. Beaird Harris Wealth Management LLC bought a new position in shares of Roku in the 1st quarter valued at $30,000. Golden State Wealth Management LLC boosted its holdings in shares of Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after acquiring an additional 247 shares in the last quarter. Finally, Princeton Global Asset Management LLC bought a new stake in Roku during the 1st quarter worth $35,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

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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