Roku (NASDAQ:ROKU) Stock Rating Upgraded by Wall Street Zen

Key Points

• Roku's stock rating has been upgraded from "hold" to "buy" by Wall Street Zen, reflecting increased analyst confidence.
• Several analysts have raised their target prices for Roku shares, with a consensus target price of $101.33.
• Roku reported better-than-expected earnings for the last quarter, with a revenue increase of 14.7% year-over-year, totaling $1.11 billion.

Roku (NASDAQ:ROKU - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Sunday.

Other equities research analysts have also recently issued research reports about the stock. Wedbush restated an "outperform" rating and issued a $100.00 target price on shares of Roku in a report on Monday, July 28th. 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. Susquehanna raised their target price on shares of Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a report on Friday, August 1st. JPMorgan Chase & Co. raised their target price on shares of Roku from $100.00 to $105.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, KeyCorp raised their target price on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $101.33.

Roku Stock Down 1.2%

Shares of ROKU opened at $94.21 on Friday. The company has a market capitalization of $13.88 billion, a P/E ratio of -224.31, a price-to-earnings-growth ratio of 11.11 and a beta of 2.13. The firm has a 50 day moving average of $96.01 and a 200 day moving average of $82.55. Roku has a twelve month low of $52.43 and a twelve month high of $107.25.

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

Insider Transactions at Roku

In related news, insider Charles Collier sold 212,559 shares of Roku stock in a transaction on Monday, July 21st. The shares were sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the transaction, the insider owned 200 shares in the company, valued at approximately $19,000. The trade was a 99.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total transaction of $2,500,000.00. Following the transaction, the chief executive officer owned 45,712 shares in the company, valued at approximately $4,571,200. This trade represents a 35.35% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 540,890 shares of company stock worth $52,833,661 in the last 90 days. 13.98% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Ethic Inc. lifted its stake in shares of Roku by 16.3% during the 3rd quarter. Ethic Inc. now owns 3,317 shares of the company's stock valued at $332,000 after buying an additional 465 shares in the last quarter. Perigon Wealth Management LLC bought a new stake in Roku in the 3rd quarter valued at $295,000. West Tower Group LLC increased its holdings in Roku by 37.5% in the 3rd quarter. West Tower Group LLC now owns 11,000 shares of the company's stock valued at $1,101,000 after acquiring an additional 3,000 shares during the last quarter. Highland Capital Management LLC increased its holdings in Roku by 21.8% in the 3rd quarter. Highland Capital Management LLC now owns 80,101 shares of the company's stock valued at $8,021,000 after acquiring an additional 14,331 shares during the last quarter. Finally, Vista Investment Partners LLC increased its holdings in Roku by 2.0% in the 3rd quarter. Vista Investment Partners LLC now owns 9,167 shares of the company's stock valued at $918,000 after acquiring an additional 181 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.

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