Roku's (ROKU) Buy Rating Reiterated at Needham & Company LLC

Key Points

• Needham & Company LLC has reiterated a "buy" rating for Roku (ROKU), setting a target price of $110.00, which indicates a potential upside of 9.86% from its current price.
• Roku recently reported $1.11 billion in revenue for the last quarter, surpassing analysts' expectations and showing a 14.7% year-over-year increase.
• Insider trading has seen significant activity; notably, CEO Anthony J. Wood sold 25,000 shares, representing a 67.65% decrease in his ownership of the stock.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "buy" rating reaffirmed by stock analysts at Needham & Company LLC in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $110.00 target price on the stock. Needham & Company LLC's price objective suggests a potential upside of 9.86% from the stock's current price.

A number of other analysts have also weighed in on ROKU. Susquehanna upped their target price on Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a report on Friday, August 1st. Bank of America upped their price objective on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, July 3rd. Wedbush reissued an "outperform" rating and set a $100.00 price target on shares of Roku in a research report on Monday, July 28th. KeyCorp increased their price target on shares of Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and increased their target price for the company from $80.00 to $100.00 in a research report on Tuesday, June 17th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the 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

NASDAQ:ROKU opened at $100.13 on Wednesday. Roku has a 1-year low of $52.43 and a 1-year high of $104.96. The company has a 50-day moving average of $93.17 and a 200 day moving average of $80.32. The firm has a market cap of $14.75 billion, a PE ratio of -238.40, a price-to-earnings-growth ratio of 14.01 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share 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 firm had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the prior year, the company earned ($0.18) EPS. The company's revenue was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Sell-side analysts anticipate that Roku will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $89.64, for a total value of $2,241,000.00. Following the completion of the transaction, the chief executive officer owned 11,953 shares of the company's stock, valued at approximately $1,071,466.92. This trade represents a 67.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, 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 completion of the transaction, the insider owned 200 shares of the company's stock, valued at $19,000. This trade represents a 99.91% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 417,025 shares of company stock worth $39,662,358. Corporate insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Institutional investors have recently bought and sold shares of the business. Berkshire Capital Holdings Inc. raised its position in Roku by 1,413,400.0% during the 1st quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock worth $9,957,000 after buying an additional 141,340 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Roku during the first quarter worth $6,026,000. Atika Capital Management LLC purchased a new position in shares of Roku during the first quarter worth $5,086,000. Lecap Asset Management Ltd. purchased a new position in shares of Roku during the 1st quarter valued at about $511,000. Finally, Blair William & Co. IL raised its stake in shares of Roku by 14.7% during the 1st quarter. Blair William & Co. IL now owns 45,727 shares of the company's stock valued at $3,221,000 after buying an additional 5,869 shares during the last quarter. 86.30% of the stock is owned by hedge funds and other 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.

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