Rosenblatt Securities Forecasts Strong Price Appreciation for Roku (NASDAQ:ROKU) Stock

Key Points

• Rosenblatt Securities raised its price target on Roku from $150 to $160 and kept a buy rating, implying about 13.6% upside from the prior close.
• Roku has also seen broad analyst support, with other firms such as Benchmark and Stifel setting $160 targets, while the stock currently carries a Moderate Buy consensus and an average price target of $152.36.
• The company recently posted strong quarterly results, beating EPS and revenue estimates with revenue up 22.4% year over year, even as the stock traded down 1.9% on the day mentioned.

Roku (NASDAQ:ROKU - Get Free Report) had its price objective increased by stock analysts at Rosenblatt Securities from $150.00 to $160.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Rosenblatt Securities' price objective suggests a potential upside of 13.56% from the stock's previous close.

Several other brokerages have also issued reports on ROKU. Benchmark lifted their price target on shares of Roku from $130.00 to $160.00 and gave the company a "buy" rating in a report on Friday, May 1st. Robert W. Baird reaffirmed a "neutral" rating and set a $160.00 price target on shares of Roku in a report on Monday. Stifel Nicolaus set a $160.00 target price on shares of Roku in a report on Monday, March 2nd. Zacks Research lowered shares of Roku from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 14th. Finally, KeyCorp lowered shares of Roku from an "overweight" rating to a "sector weight" rating in a report on Monday. Fourteen equities research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat.com, Roku has an average rating of "Moderate Buy" and an average price target of $152.36.

Roku Trading Down 1.9%

Shares of Roku stock opened at $140.90 on Tuesday. The firm has a market capitalization of $20.77 billion, a PE ratio of 105.94 and a beta of 2.06. The firm's 50 day moving average is $119.60 and its 200 day moving average is $106.65. Roku has a 1 year low of $77.64 and a 1 year high of $148.88.

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

Insider Activity

In other Roku news, insider Mustafa Ozgen sold 10,194 shares of the business's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $144.00, for a total transaction of $1,467,936.00. Following the sale, the insider directly owned 19,185 shares of the company's stock, valued at $2,762,640. The trade was a 34.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,537 shares of the company's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $124.94, for a total transaction of $2,565,892.78. Following the completion of the sale, the insider directly owned 15,200 shares in the company, valued at approximately $1,899,088. This represents a 57.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 706,194 shares of company stock worth $80,756,499. Company insiders own 13.45% of the company's stock.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently modified their holdings of ROKU. Empowered Funds LLC boosted its stake in shares of Roku by 18.6% in the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock valued at $232,000 after purchasing an additional 515 shares during the last quarter. Focus Partners Wealth bought a new stake in shares of Roku in the 1st quarter valued at $229,000. EverSource Wealth Advisors LLC boosted its stake in shares of Roku by 145.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock valued at $123,000 after purchasing an additional 826 shares during the last quarter. First Trust Advisors LP boosted its stake in shares of Roku by 231.0% in the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock valued at $6,221,000 after purchasing an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. bought a new stake in shares of Roku in the 2nd quarter valued at $326,000. 86.30% of the stock is owned by institutional investors.

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.

Roku Company Profile

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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