Roku's (ROKU) Outperform Rating Reaffirmed at Wedbush

Key Points

• Wedbush has reaffirmed an "outperform" rating for Roku (NASDAQ: ROKU) with a price target of $100.00, suggesting a potential upside of 6.78% from the stock's previous close.
• Roku's recent quarterly earnings showed a revenue of $1.02 billion, exceeding expectations, alongside a narrower EPS loss compared to analyst forecasts.
• Insider selling activity has been significant, with key executives selling large amounts of stock recently, which raises concerns about management confidence in the company's prospects.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "outperform" rating restated by research analysts at Wedbush in a note issued to investors on Monday,RTT News reports. They presently have a $100.00 price target on the stock. Wedbush's price target indicates a potential upside of 6.78% from the company's previous close.

ROKU has been the subject of a number of other reports. Wells Fargo & Company cut their price objective on Roku from $129.00 to $93.00 and set an "overweight" rating for the company in a research note on Monday, April 28th. Piper Sandler increased their price target on Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a report on Thursday, July 10th. Rosenblatt Securities dropped their target price on shares of Roku from $100.00 to $75.00 and set a "neutral" rating on the stock in a research note on Friday, May 2nd. Evercore ISI cut their target price on Roku from $105.00 to $80.00 and set an "in-line" rating on the stock in a research note on Friday, May 2nd. Finally, Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a report on Saturday. One research analyst has rated the stock with a sell rating, seven have given a hold rating, eighteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and a consensus target price of $93.92.

Roku Price Performance

NASDAQ:ROKU traded up $3.53 during trading hours on Monday, hitting $93.65. The stock had a trading volume of 4,243,538 shares, compared to its average volume of 3,887,487. The company has a 50 day simple moving average of $81.78 and a two-hundred day simple moving average of $76.51. The firm has a market capitalization of $13.67 billion, a price-to-earnings ratio of -128.29 and a beta of 2.12. Roku has a one year low of $48.33 and a one year high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating analysts' consensus estimates of ($0.27) by $0.08. The business had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $1.01 billion. Roku had a negative net margin of 2.49% and a negative return on equity of 4.29%. The business's quarterly revenue was up 15.8% on a year-over-year basis. During the same period last year, the business earned ($0.35) earnings per share. Equities research analysts anticipate that Roku will post -0.3 earnings per share for the current year.

Insider Buying and Selling

In other news, 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 in the company, valued at $19,000. This trade represents a 99.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $89.64, for a total transaction of $2,241,000.00. Following the completion of 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 ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 309,079 shares of company stock valued at $28,091,399 over the last 90 days. Insiders own 13.98% of the company's stock.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently added to or reduced their stakes in the company. Garde Capital Inc. acquired a new position in shares of Roku in the first quarter worth about $25,000. Beaird Harris Wealth Management LLC bought a new position in shares of Roku in the first quarter valued at approximately $30,000. Banque Transatlantique SA acquired a new stake in Roku in the first quarter worth approximately $28,000. Golden State Wealth Management LLC lifted its position in shares of Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after acquiring an additional 247 shares during the last quarter. Finally, JFS Wealth Advisors LLC lifted its stake in Roku by 327.1% during the second quarter. JFS Wealth Advisors LLC now owns 457 shares of the company's stock valued at $40,000 after buying an additional 350 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

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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