Roku (NASDAQ:ROKU) Receives Sell (D-) Rating from Weiss Ratings

Key Points

• Roku has received a Sell (D-) rating from Weiss Ratings, while other analysts have set target prices ranging from $100 to $145 with ratings of Neutral to Buy.
• The company's stock opened at $99.93 and has a market capitalization of $14.72 billion, with a 1-year price range between $52.43 and $107.25.
• In the last quarter, insiders sold a total of 518,890 shares valued at approximately $50.7 million, indicating significant insider activity.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "sell (d-)" rating reaffirmed by equities researchers at Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

Other research analysts have also recently issued reports about the stock. Citigroup lifted their price objective on shares of Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a research note on Thursday, September 18th. Susquehanna boosted their target price on shares of Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a research note on Friday, August 1st. Guggenheim boosted their target price on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Needham & Company LLC reaffirmed a "buy" rating and set a $110.00 target price on shares of Roku in a research note on Wednesday, October 1st. Finally, JMP Securities reaffirmed a "market outperform" rating and set a $145.00 target price on shares of Roku in a research note on Thursday, October 2nd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Roku presently has an average rating of "Moderate Buy" and an average price target of $101.33.

Roku Price Performance

Shares of NASDAQ:ROKU opened at $99.93 on Wednesday. The company's 50 day simple moving average is $94.60 and its 200 day simple moving average is $81.54. The stock has a market capitalization of $14.72 billion, a price-to-earnings ratio of -237.93, a price-to-earnings-growth ratio of 14.25 and a beta of 2.13. Roku has a 1 year low of $52.43 and a 1 year high of $107.25.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 net margin of 1.40% and a negative return on equity of 2.44%. The firm's quarterly revenue was up 14.7% compared to the same quarter last year. During the same period last year, the firm posted ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, analysts anticipate that Roku will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Mustafa Ozgen sold 50,527 shares of the business's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total value of $5,052,700.00. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Matthew C. Banks sold 2,180 shares of the business's stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $97.85, for a total transaction of $213,313.00. Following the completion of the sale, the chief accounting officer directly owned 5,355 shares in the company, valued at approximately $523,986.75. This represents a 28.93% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 518,890 shares of company stock valued at $50,737,151 over the last quarter. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently bought and sold shares of the company. Garde Capital Inc. acquired a new position in Roku in the first quarter valued at $25,000. Banque Transatlantique SA acquired a new position in Roku in the first quarter valued at $28,000. Beaird Harris Wealth Management LLC acquired a new position in Roku in the first quarter valued at $30,000. Golden State Wealth Management LLC lifted its holdings in Roku by 125.4% in the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after buying an additional 247 shares during the period. Finally, First PREMIER Bank acquired a new position in Roku in the first quarter valued at $35,000. Institutional investors and hedge funds 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.

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