Roku (NASDAQ:ROKU) Stock Price Expected to Rise, KeyCorp Analyst Says

Key Points

• Roku's price target has been raised to $116.00 by KeyCorp, indicating a potential upside of 23.19% from its previous close, with the firm maintaining an "overweight" rating on the stock.
• The company reported stronger than expected earnings with an EPS of $0.07, surpassing analysts' estimates, and recorded a 14.7% increase in quarterly revenue year-over-year.
• Insider selling activity has been notable, with the CEO and a director selling significant shares, leading to a total of 308,873 shares sold by insiders over the last 90 days.

Roku (NASDAQ:ROKU - Free Report) had its price objective hoisted by KeyCorp from $115.00 to $116.00 in a report issued on Friday morning,Benzinga reports. They currently have an overweight rating on the stock.

ROKU has been the topic of several other reports. Wells Fargo & Company dropped their price objective on shares of Roku from $129.00 to $93.00 and set an "overweight" rating on the stock in a report on Monday, April 28th. Evercore ISI dropped their price objective on shares of Roku from $105.00 to $80.00 and set an "in-line" rating on the stock in a report on Friday, May 2nd. Wall Street Zen raised shares of Roku from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Benchmark reaffirmed a "buy" rating and issued a $130.00 price objective on shares of Roku in a report on Friday, May 2nd. Finally, Guggenheim reaffirmed a "buy" rating and set a $100.00 target price on shares of Roku in a report on Friday, May 2nd. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, nineteen have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and an average price target of $99.36.

Roku Price Performance

NASDAQ ROKU traded down $14.18 on Friday, hitting $79.98. The stock had a trading volume of 15,358,882 shares, compared to its average volume of 2,951,984. The business's fifty day moving average price is $83.77 and its 200 day moving average price is $76.97. Roku has a 52-week low of $48.33 and a 52-week high of $104.96. The stock has a market cap of $11.67 billion, a price-to-earnings ratio of -190.43 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The business had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. Roku had a negative net margin of 1.40% and a negative return on equity of 2.47%. The business's quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter last year, the company posted ($0.18) earnings per share. As a group, sell-side analysts anticipate that Roku will post -0.3 EPS for the current year.

Insider Buying and Selling

In related news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total transaction of $270,600.00. Following the transaction, the chief financial officer directly owned 76,132 shares in the company, valued at approximately $6,867,106.40. This represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 212,559 shares of the stock in a transaction that occurred on 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 transaction, the insider directly owned 200 shares in the company, valued at approximately $19,000. This represents a 99.91% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 308,873 shares of company stock worth $28,076,913. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

A number of hedge funds have recently made changes to their positions in the company. FMR LLC lifted its holdings in shares of Roku by 31.7% in the 4th quarter. FMR LLC now owns 19,183,942 shares of the company's stock worth $1,426,134,000 after purchasing an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Roku by 2.1% in the 1st quarter. Vanguard Group Inc. now owns 12,503,595 shares of the company's stock worth $880,753,000 after purchasing an additional 254,504 shares during the last quarter. Marshall Wace LLP lifted its holdings in shares of Roku by 663.9% in the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock worth $173,644,000 after purchasing an additional 2,030,036 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Roku by 10.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company's stock worth $168,734,000 after purchasing an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock worth $159,353,000 after purchasing an additional 56,820 shares during the last quarter. Hedge funds and other institutional investors 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.