Weiss Ratings Reiterates Sell (D-) Rating for Roku (NASDAQ:ROKU)

Key Points

• Weiss Ratings reiterated a "sell (D-)" rating for Roku, expressing ongoing concerns despite competing analysts offering more favorable ratings.
• Roku's stock is currently priced at approximately $96.29 following a decline, with a market capitalization of $14.19 billion and a 52-week trading range of $52.43 to $107.25.
• Insider transactions revealed significant sales, with CFO Dan Jedda selling 3,000 shares, indicating potential concerns about the company's future stock performance.

Roku (NASDAQ:ROKU - Get Free Report)'s stock had its "sell (d-)" rating restated by equities researchers at Weiss Ratings in a research report issued on Saturday,Weiss Ratings reports.

A number of other analysts have also weighed in on the stock. UBS Group raised their price objective on shares of Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Rosenblatt Securities raised their price objective on shares of Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Guggenheim raised their price objective on shares of Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Citigroup raised their price objective on shares of Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a research note on Thursday, September 18th. Finally, Susquehanna raised their price objective on shares of Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research note on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $101.33.

Roku Stock Performance

Shares of Roku stock traded down $1.99 during trading on Friday, hitting $96.29. The company's stock had a trading volume of 2,370,702 shares, compared to its average volume of 2,700,097. The company has a fifty day simple moving average of $97.05 and a two-hundred day simple moving average of $83.95. The company has a market capitalization of $14.19 billion, a PE ratio of -229.26, a P/E/G ratio of 11.35 and a beta of 2.13. Roku has a 52 week low of $52.43 and a 52 week high of $107.25.

Roku (NASDAQ:ROKU - Get Free Report) last issued 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. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. Roku's quarterly revenue was up 14.7% compared to the same quarter last year. During the same period last year, the business earned ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, analysts predict that Roku will post -0.3 EPS for the current year.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction that occurred on Wednesday, October 15th. The shares were sold at an average price of $95.82, for a total value of $287,460.00. Following the completion of the sale, the chief financial officer directly owned 80,420 shares in the company, valued at $7,705,844.40. The trade was a 3.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Charles Collier sold 15,404 shares of Roku stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $103.31, for a total transaction of $1,591,387.24. Following the completion of the sale, the insider owned 200 shares of the company's stock, valued at $20,662. This represents a 98.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 328,331 shares of company stock valued at $32,640,556. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently made changes to their positions in ROKU. Banque Transatlantique SA purchased a new position in shares of Roku in the first quarter worth approximately $28,000. Beaird Harris Wealth Management LLC purchased a new position in shares of Roku in the first quarter worth approximately $30,000. Golden State Wealth Management LLC boosted its holdings in shares of Roku by 125.4% in the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock worth $31,000 after buying an additional 247 shares during the last quarter. Rakuten Securities Inc. boosted its holdings in shares of Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock worth $39,000 after buying an additional 158 shares during the last quarter. Finally, JFS Wealth Advisors LLC boosted its holdings in shares of Roku by 327.1% in the second quarter. JFS Wealth Advisors LLC now owns 457 shares of the company's stock worth $40,000 after buying an additional 350 shares during 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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