Roku (NASDAQ:ROKU) Price Target Raised to $140.00

Key Points

• Jefferies raised its price target on Roku to $140 (from $135) and kept a "buy" rating, implying roughly a 35% upside from the current share price.
• Roku beat quarterly expectations with EPS $0.53 vs. $0.28 and revenue of $1.39B (up 16.1% year-over-year); the stock traded around $103.50 with a market cap of $15.26B and a high P/E of 181.47.
• Analyst sentiment is broadly positive—Roku carries a consensus rating of "Moderate Buy" with an average target of $127.79 and individual targets ranging roughly $118–$160.

Roku (NASDAQ:ROKU - Get Free Report) had its price target upped by investment analysts at Jefferies Financial Group from $135.00 to $140.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Jefferies Financial Group's price objective suggests a potential upside of 35.27% from the company's current price.

A number of other research analysts also recently weighed in on ROKU. Rosenblatt Securities raised Roku from a "neutral" rating to a "buy" rating and increased their target price for the company from $106.00 to $118.00 in a report on Friday, February 13th. Stifel Nicolaus set a $160.00 target price on Roku in a report on Monday, March 2nd. Citigroup reissued a "market outperform" rating on shares of Roku in a report on Monday, March 2nd. Piper Sandler reissued an "overweight" rating and issued a $140.00 target price (up from $135.00) on shares of Roku in a report on Friday, February 13th. Finally, Evercore reissued an "outperform" rating and issued a $150.00 target price on shares of Roku in a report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Roku has an average rating of "Moderate Buy" and a consensus target price of $127.79.

Roku Price Performance

Shares of Roku stock traded up $1.03 during trading on Monday, hitting $103.50. 1,631,963 shares of the company's stock traded hands, compared to its average volume of 3,345,440. Roku has a 1 year low of $57.01 and a 1 year high of $116.66. The stock has a market capitalization of $15.26 billion, a P/E ratio of 181.47 and a beta of 2.00. The business has a 50-day simple moving average of $93.77 and a 200-day simple moving average of $99.53.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The company had revenue of $1.39 billion for the quarter, compared to analysts' expectations of $1.35 billion. During the same period last year, the firm posted ($0.24) earnings per share. Roku's revenue was up 16.1% compared to the same quarter last year. On average, equities analysts predict that Roku will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In other news, insider Gilbert Fuchsberg sold 3,250 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total value of $310,602.50. Following the transaction, the insider owned 60,456 shares of the company's stock, valued at $5,777,779.92. This trade represents a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Christopher T. Handman sold 2,999 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total value of $286,614.43. Following the completion of the transaction, the senior vice president directly owned 2,999 shares in the company, valued at $286,614.43. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 343,944 shares of company stock valued at $34,787,865. Company insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ROKU. CWM LLC grew its position in shares of Roku by 345.4% during the third quarter. CWM LLC now owns 84,010 shares of the company's stock worth $8,412,000 after purchasing an additional 65,150 shares in the last quarter. Accurate Wealth Management LLC purchased a new stake in shares of Roku during the third quarter worth about $1,115,000. AGF Management Ltd. purchased a new stake in shares of Roku during the third quarter worth about $15,023,000. Holocene Advisors LP grew its position in shares of Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock worth $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. Finally, Convergence Investment Partners LLC purchased a new stake in shares of Roku during the third quarter worth about $2,492,000. Institutional investors own 86.30% of the company's stock.

About Roku

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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