Roku's (ROKU) "Market Outperform" Rating Reiterated at JMP Securities

Key Points

• Roku's stock rating was reiterated as "market outperform" by JMP Securities, with a price objective set at $145.00, indicating a 40% potential upside from its previous close.
• The company's most recent quarterly earnings surpassed expectations, reporting $0.07 EPS compared to the consensus estimate of ($0.16), along with a revenue of $1.11 billion.
• Insider activity showed significant sales, with CEO Anthony J. Wood selling 25,000 shares, reducing his ownership stake by 67.65%.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "market outperform" rating reiterated by investment analysts at JMP Securities in a research note issued to investors on Thursday,Benzinga reports. They presently have a $145.00 price objective on the stock. JMP Securities' price objective indicates a potential upside of 40.00% from the stock's previous close.

Several other brokerages also recently issued reports on ROKU. KeyCorp upped their price target on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Rosenblatt Securities boosted their price objective on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Susquehanna increased their target price on Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research report on Friday, August 1st. Pivotal Research boosted their price target on Roku from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Finally, Bank of America upped their price objective on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $101.33.

Roku Stock Up 3.4%

ROKU stock opened at $103.57 on Thursday. The company's 50-day moving average price is $93.44 and its two-hundred day moving average price is $80.48. Roku has a 12 month low of $52.43 and a 12 month high of $105.11. The firm has a market cap of $15.26 billion, a P/E ratio of -246.60, a P/E/G ratio of 14.02 and a beta of 2.13.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly 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 business had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same quarter last year, the business posted ($0.18) EPS. The firm's revenue for the quarter was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts predict that Roku will post -0.3 EPS for the current year.

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction dated 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 sale, the chief executive officer owned 11,953 shares in the company, valued at $1,071,466.92. This represents a 67.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Matthew C. Banks sold 3,360 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $85.05, for a total value of $285,768.00. Following the completion of the transaction, the chief accounting officer owned 5,195 shares in the company, valued at $441,834.75. This represents a 39.28% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 417,025 shares of company stock worth $39,662,358 over the last three months. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently bought and sold shares of ROKU. Tableaux LLC purchased a new stake in shares of Roku during the second quarter valued at approximately $1,746,000. Acadian Asset Management LLC grew its stake in Roku by 456.7% in the 1st quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock valued at $134,222,000 after purchasing an additional 1,563,449 shares during the period. Duquesne Family Office LLC increased its position in shares of Roku by 123.0% during the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock valued at $96,723,000 after purchasing an additional 606,900 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of Roku by 38,431.7% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company's stock worth $34,470,000 after purchasing an additional 488,083 shares during the period. Finally, AQR Capital Management LLC boosted its holdings in shares of Roku by 491.5% in the 1st quarter. AQR Capital Management LLC now owns 562,027 shares of the company's stock worth $38,943,000 after buying an additional 467,005 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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