Roku, Inc. (NASDAQ:ROKU) Given Consensus Rating of “Moderate Buy” by Brokerages

Roku, Inc. (NASDAQ:ROKU) has earned an average recommendation of “Moderate Buy” from the twenty-six research firms that are covering the stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and twenty-two have issued a buy recommendation on the company. The average 12-month price target among analysts that have covered the stock in the last year is $148.2083.

Several research firms have recently commented on ROKU. Rosenblatt Securities increased their price target on shares of Roku from $118.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Wells Fargo & Company increased their price target on shares of Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Susquehanna increased their price target on shares of Roku from $130.00 to $160.00 and gave the company a “positive” rating in a research note on Friday, May 1st. UBS Group set a $170.00 price objective on shares of Roku in a report on Thursday, May 28th. Finally, Jefferies Financial Group increased their price objective on shares of Roku from $135.00 to $140.00 and gave the company a “buy” rating in a report on Monday, April 13th.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is reportedly in sale talks, including a possible media tie-up, which could lead to a strategic transaction and a premium valuation if a buyer steps forward. Roku Stock Hits 4-Year High After Reports It Has Held Sale Talks
• Positive Sentiment: Analysts remain bullish after the rally, with recent price-target increases reinforcing expectations for continued upside tied to Roku’s ad-tech and platform monetization efforts. Roku (ROKU) Soars 20.1%: Is Further Upside Left in the Stock?
• Positive Sentiment: Roku’s latest earnings still support the bull case, as the company beat expectations on both earnings and revenue and posted strong year-over-year growth in its most recent quarterly report.
• Neutral Sentiment: Trading was temporarily halted for “news pending,” which usually points to an imminent announcement but does not by itself indicate whether the news will help or hurt the stock.
• Neutral Sentiment: One recent insider sale and other routine share sales may slightly temper sentiment, but the disclosed transaction was tied to tax withholding and is not necessarily a bearish signal. Mai Fyfield Sells 832 Shares of Roku (NASDAQ:ROKU) Stock

Insider Activity at Roku

In related news, insider Charles Collier sold 205,821 shares of the stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total value of $21,611,205.00. Following the transaction, the insider directly owned 11,131 shares in the company, valued at $1,168,755. This represents a 94.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 10,194 shares of the 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 completion of the transaction, the insider owned 19,185 shares in the company, valued at $2,762,640. This represents a 34.70% 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. Insiders have sold 706,194 shares of company stock worth $80,756,499 over the last ninety days. Company insiders own 13.45% of the company’s stock.

Hedge Funds Weigh In On Roku

Several large investors have recently bought and sold shares of ROKU. Jefferies Financial Group Inc. acquired a new position in Roku during the fourth quarter worth $1,345,000. Holocene Advisors LP lifted its position in shares of Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. Crossmark Global Holdings Inc. bought a new position in shares of Roku during the third quarter valued at about $2,997,000. MH & Associates Securities Management Corp ADV bought a new position in shares of Roku during the fourth quarter valued at about $2,398,000. Finally, Magnetar Financial LLC bought a new position in shares of Roku during the third quarter valued at about $5,466,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Price Performance

ROKU opened at $143.66 on Monday. Roku has a one year low of $73.91 and a one year high of $148.88. The company’s 50 day simple moving average is $118.73 and its 200-day simple moving average is $106.32. The stock has a market capitalization of $21.18 billion, a P/E ratio of 108.02 and a beta of 2.06.

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

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.