Roku's (ROKU) "Neutral" Rating Reaffirmed at JPMorgan Chase & Co.

Key Points

• JPMorgan reiterated its Neutral rating on Roku and raised its price target to $160 from $150, implying about 13.6% upside from the current price.
• Analyst views remain mixed overall: multiple firms have recently reiterated or changed ratings, and MarketBeat shows Roku with an average rating of Hold and a consensus price target of $153.76.
• Roku’s stock was trading near its 52-week high after strong quarterly results, including EPS of $0.57 versus $0.34 expected and revenue up 22.4% year over year.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "neutral" rating reiterated by equities research analysts at JPMorgan Chase & Co. in a research report issued on Tuesday,Benzinga reports. They presently have a $160.00 price objective on the stock, up from their prior price objective of $150.00. JPMorgan Chase & Co.'s price objective suggests a potential upside of 13.56% from the company's current price.

A number of other research analysts also recently commented on the company. Evercore restated an "outperform" rating and set a $185.00 price objective on shares of Roku in a research note on Friday. Wolfe Research downgraded Roku from an "outperform" rating to a "peer perform" rating in a research note on Tuesday. Robert W. Baird restated a "neutral" rating and set a $160.00 price objective on shares of Roku in a research note on Monday. Weiss Ratings restated a "hold (c-)" rating on shares of Roku in a research note on Friday, May 15th. Finally, Piper Sandler downgraded Roku from an "overweight" rating to a "neutral" rating and set a $160.00 price objective for the company. in a research note on Tuesday. Twelve investment analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $153.76.

Roku Price Performance

Shares of ROKU opened at $140.90 on Tuesday. The company has a market cap of $20.77 billion, a P/E ratio of 105.94 and a beta of 2.06. The stock has a fifty day moving average price of $119.60 and a 200 day moving average price of $106.65. Roku has a 12 month low of $77.64 and a 12 month high of $148.88.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.23. The firm had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a return on equity of 7.64% and a net margin of 4.06%.The firm's revenue was up 22.4% on a year-over-year basis. During the same period in the prior year, the business earned ($0.19) EPS. As a group, research analysts anticipate that Roku will post 2.41 earnings per share for the current year.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 75,000 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $128.79, for a total transaction of $9,659,250.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 205,821 shares of the business's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total value of $21,611,205.00. Following the transaction, the insider owned 11,131 shares of the company's stock, valued at $1,168,755. This trade represents a 94.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 706,194 shares of company stock worth $80,756,499. 13.45% of the stock is owned by company insiders.

Institutional Trading of Roku

Several institutional investors have recently modified their holdings of ROKU. Empowered Funds LLC lifted its holdings in shares of Roku by 18.6% in the first quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock valued at $232,000 after buying an additional 515 shares during the period. Focus Partners Wealth acquired a new stake in shares of Roku in the first quarter valued at $229,000. EverSource Wealth Advisors LLC lifted its holdings in shares of Roku by 145.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock valued at $123,000 after buying an additional 826 shares during the period. First Trust Advisors LP lifted its holdings in shares of Roku by 231.0% in the second quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock valued at $6,221,000 after buying an additional 49,399 shares during the period. Finally, Brown Advisory Inc. acquired a new stake in shares of Roku in the second quarter valued at $326,000. Institutional investors and hedge funds own 86.30% of the company's stock.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox Corp. agreed to buy Roku for about $22 billion, valuing ROKU at $160 per share and signaling a major premium to pre-deal trading levels. Fox to buy streaming pioneer Roku in a $22 billion deal
• Positive Sentiment: Wall Street has started updating its outlook on Roku following the acquisition announcement, including a higher price target from Citizens JMP, reinforcing investor interest in the stock. Roku price target raised by Citizens JMP
• Positive Sentiment: Roku saw unusually large call-option buying, suggesting traders are positioning for continued upside or more deal-related volatility. Wall Street sets Roku stock price target amid $22B acquisition
• Neutral Sentiment: The acquisition is drawing legal scrutiny, with shareholder-law firms investigating whether Roku shareholders are getting a fair price, which may add headline risk but does not yet change the deal itself. Shareholder alert: investigation of Roku related to sale to Fox
• Neutral Sentiment: Coverage around the merger highlights strategic benefits for Fox’s streaming and advertising ambitions, but investor reaction appears mixed because the deal price may leave limited immediate upside beyond the offer value. Roku Stock Rises. Why $22 Billion Fox Sale May Disappoint.

About Roku

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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