Roku (NASDAQ:ROKU) Trading 1.7% Higher on Analyst Upgrade

Key Points

• Roku's stock rose 1.7% to $96.87 following an upgrade by JMP Securities, which raised its price target from $110 to $145 while maintaining a market outperform rating.
• Insider transactions showed CEO Anthony J. Wood sold 25,000 shares at $82.42 each, reducing his ownership by over 60%, alongside other significant sales from company insiders.
• Roku reported a quarterly EPS of $0.07, exceeding analysts' expectations, with a revenue of $1.11 billion, indicating a 14.7% year-over-year growth.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) traded up 1.7% on Monday after JMP Securities raised their price target on the stock from $110.00 to $145.00. JMP Securities currently has a market outperform rating on the stock. Roku traded as high as $98.00 and last traded at $96.87. 992,570 shares were traded during mid-day trading, a decline of 75% from the average session volume of 3,931,470 shares. The stock had previously closed at $95.24.

A number of other brokerages have also issued reports on ROKU. Citigroup reiterated an "outperform" rating on shares of Roku in a research report on Monday, August 25th. Wedbush reaffirmed an "outperform" rating and set a $100.00 target price on shares of Roku in a report on Monday, July 28th. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Needham & Company LLC increased their price objective on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Finally, Loop Capital raised Roku from a "hold" rating to a "buy" rating and raised their price target for the stock from $80.00 to $100.00 in a research note on Tuesday, June 17th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Roku presently has a consensus rating of "Moderate Buy" and a consensus price target of $100.36.

Insider Transactions at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction on Monday, August 11th. The stock was sold at an average price of $82.42, for a total value of $2,060,500.00. Following the sale, the chief executive officer owned 16,441 shares of the company's stock, valued at $1,355,067.22. The trade was a 60.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Charles Collier sold 10,269 shares of the business's stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $99.14, for a total value of $1,018,068.66. Following the completion of the sale, the insider directly owned 200 shares in the company, valued at approximately $19,828. This represents a 98.09% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 343,588 shares of company stock worth $31,759,978 over the last quarter. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

Institutional investors have recently bought and sold shares of the stock. Garde Capital Inc. acquired a new stake in Roku in the 1st quarter valued at $25,000. Banque Transatlantique SA acquired a new position in Roku in the first quarter worth $28,000. Beaird Harris Wealth Management LLC acquired a new position in Roku in the first quarter worth $30,000. Golden State Wealth Management LLC boosted its stake in Roku by 125.4% in the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock worth $31,000 after purchasing an additional 247 shares in the last quarter. Finally, Princeton Global Asset Management LLC acquired a new position in Roku in the first quarter worth $35,000. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku Price Performance

The company has a market cap of $14.28 billion, a price-to-earnings ratio of -230.63, a price-to-earnings-growth ratio of 13.33 and a beta of 2.05. The business has a 50 day simple moving average of $90.15 and a 200 day simple moving average of $78.08.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.44% 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 quarter in the previous year, the firm earned ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

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.

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