Susquehanna Forecasts Strong Price Appreciation for Roku (NASDAQ:ROKU) Stock

Key Points

• Susquehanna has raised its price target for Roku from $85.00 to $110.00, reflecting a potential upside of 34.37% from the stock's previous close.
• Roku's recent earnings report showed a 14.7% increase in revenue year-over-year, with an EPS of $0.07, surpassing analysts' expectations.
• Institutional investors now own 86.30% of Roku's stock, indicating strong market confidence in the company's future performance.

Roku (NASDAQ:ROKU - Get Free Report) had its target price upped by stock analysts at Susquehanna from $85.00 to $110.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a "positive" rating on the stock. Susquehanna's price objective indicates a potential upside of 37.53% from the company's previous close.

ROKU has been the topic of a number of other reports. JMP Securities boosted their price target on Roku from $95.00 to $110.00 and gave the stock a "market outperform" rating in a research report on Monday, July 21st. Wells Fargo & Company lowered their price objective on Roku from $129.00 to $93.00 and set an "overweight" rating on the stock in a research report on Monday, April 28th. Loop Capital raised Roku from a "hold" rating to a "buy" rating and upped their price objective for the company from $80.00 to $100.00 in a research report on Tuesday, June 17th. Pivotal Research upped their price objective on Roku from $100.00 to $120.00 and gave the company a "buy" rating in a research report on Friday. Finally, Needham & Company LLC upped their price objective on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research report on Friday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Roku currently has a consensus rating of "Moderate Buy" and a consensus price target of $99.36.

Roku Trading Down 15.1%

Roku stock traded down $14.18 during trading hours on Friday, hitting $79.98. 15,358,882 shares of the stock traded hands, compared to its average volume of 2,951,984. The firm's 50-day moving average price is $83.77 and its two-hundred day moving average price is $76.97. The company has a market cap of $11.67 billion, a PE ratio of -190.43 and a beta of 2.05. Roku has a one year low of $48.33 and a one year high of $104.96.

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

Insider Buying and Selling

In related news, insider Charles Collier sold 212,559 shares of the firm's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $95.00, for a total value of $20,193,105.00. Following the transaction, the insider directly owned 200 shares of the company's stock, valued at approximately $19,000. This trade represents a 99.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Dan Jedda sold 3,000 shares of the firm's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total value of $270,600.00. Following the completion of 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 disclosure for this sale can be found here. In the last three months, insiders have sold 308,873 shares of company stock valued at $28,076,913. 13.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the business. Garde Capital Inc. bought a new stake in Roku during the first quarter valued at about $25,000. Beaird Harris Wealth Management LLC bought a new stake in Roku during the first quarter valued at about $30,000. Banque Transatlantique SA bought a new stake in Roku during the first quarter valued at about $28,000. Golden State Wealth Management LLC raised its holdings in Roku by 125.4% during the first 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 during the period. Finally, JFS Wealth Advisors LLC raised its holdings in Roku by 327.1% during the second quarter. JFS Wealth Advisors LLC now owns 457 shares of the company's stock valued at $40,000 after acquiring an additional 350 shares during the period. 86.30% of the stock is owned by institutional investors.

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.