Roku, Inc. (NASDAQ:ROKU) Stock Now Rated “Hold” by Wall Street Analysts

Roku, Inc. (NASDAQ:ROKU) has received an average rating of “Hold” from the twenty-seven brokerages that are presently covering the stock, Marketbeat.com reports. Nineteen research analysts have rated the stock with a hold recommendation, seven have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $156.17.

A number of research firms recently issued reports on ROKU. Rosenblatt Securities reissued a “buy” rating and set a $160.00 price objective on shares of Roku in a research report on Monday, August 10th. Seaport Research Partners downgraded Roku from a “buy” rating to a “neutral” rating in a research note on Friday, August 7th. UBS Group upped their target price on Roku from $126.00 to $172.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Wedbush reaffirmed a “neutral” rating and issued a $155.00 target price on shares of Roku in a research report on Thursday, September 24th. Finally, Zacks Research raised Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th.

Insider Buying and Selling at Roku

In related news, CAO Matthew C. Banks sold 554 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $152.21, for a total value of $84,324.34. Following the transaction, the chief accounting officer owned 7,568 shares in the company, valued at approximately $1,151,925.28. This represents a 6.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 4,824 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $750,807.36. Following the transaction, the insider directly owned 40,168 shares in the company, valued at approximately $6,251,747.52. The trade was a 10.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 112,285 shares of company stock worth $17,154,985 over the last quarter. Insiders own 13.45% of the company’s stock.

Institutional Trading of Roku

Several large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership raised its holdings in shares of Roku by 229.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after purchasing an additional 1,419,772 shares in the last quarter. HBK Investments L P acquired a new stake in shares of Roku in the 2nd quarter valued at $163,604,000. Fred Alger Management LLC boosted its holdings in Roku by 7,087.7% in the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after purchasing an additional 1,401,664 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in Roku by 22.8% in the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company’s stock worth $148,090,000 after purchasing an additional 290,200 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its holdings in Roku by 24.7% in the first quarter. Assenagon Asset Management S.A. now owns 1,162,051 shares of the company’s stock worth $109,953,000 after purchasing an additional 230,398 shares in the last quarter. 86.30% of the stock is owned by institutional investors.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox acquisition approved: Roku and Fox shareholders approved the transaction, removing a major deal hurdle and increasing confidence that Roku will be acquired for approximately $22 billion. The approval may support the stock by reducing merger uncertainty, although closing remains subject to customary conditions. Shareholders Approve Fox’s $22 Billion Roku Acquisition
• Positive Sentiment: Streaming-platform strength: Coverage highlights Roku’s position as the largest U.S. streaming platform despite competition from Apple and Google. Its scale and reach could make the company strategically valuable to Fox as it combines streaming distribution with its media assets. Apple and Google keep trying to take Roku down, but it’s the biggest name in US streaming for these 6 reasons
• Neutral Sentiment: Recent market outperformance: Market coverage attributes Roku’s stronger trading performance to investor interest in the acquisition and the company’s streaming-market position. With shares near their 52-week high, further gains may depend more on deal completion than on near-term operating results. Roku (ROKU) Laps the Stock Market: Here’s Why
• Neutral Sentiment: End of Roku’s standalone era: Commentary frames the acquisition as a significant corporate transition. While the deal may deliver value to shareholders, investors will need to assess Fox’s integration strategy and the future of Roku’s brand and platform. It’s officially the end of an era for Roku

Roku Stock Up 1.4%

ROKU stock opened at $154.67 on Friday. Roku has a 12-month low of $78.53 and a 12-month high of $159.89. The company has a market cap of $22.96 billion, a price-to-earnings ratio of 62.53 and a beta of 2.05. The company has a 50 day moving average of $154.75 and a two-hundred day moving average of $137.10.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same quarter last year, the business posted $0.07 EPS. The company’s revenue for the quarter was up 21.9% on a year-over-year basis. On average, research analysts anticipate that Roku will post 2.92 EPS for the current year.

About Roku

Roku, Inc develops and operates a television streaming platform that connects consumers with digital entertainment. Its platform enables users to access streaming services, live television, movies, music and other content through Roku devices and Roku-powered televisions.

The company offers Roku streaming players, Roku-branded televisions and the Roku operating system, which it licenses to television manufacturers. Roku also operates The Roku Channel, an ad-supported streaming service offering movies, television programs, news, live channels and other content.