Roku, Inc. (NASDAQ:ROKU) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Roku, Inc. (NASDAQ:ROKU) have been assigned an average rating of “Moderate Buy” from the twenty-six ratings firms that are covering the company, Marketbeat.com reports. Five analysts have rated the stock with a hold recommendation and twenty-one have given a buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $143.4167.

ROKU has been the subject of several research analyst reports. Jefferies Financial Group raised their price target on Roku from $135.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, April 13th. Wells Fargo & Company lifted their target price on Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a report on Friday, May 1st. Morgan Stanley reiterated an “overweight” rating and issued a $150.00 target price on shares of Roku in a report on Friday, May 1st. Susquehanna lifted their target price on Roku from $130.00 to $160.00 and gave the company a “positive” rating in a report on Friday, May 1st. Finally, Citigroup lifted their target price on Roku from $100.00 to $120.00 and gave the company a “neutral” rating in a report on Monday, May 4th.

Insider Buying and Selling

In related news, insider Gilbert Fuchsberg sold 9,593 shares of Roku stock in a transaction on Friday, May 1st. The stock was sold at an average price of $125.52, for a total value of $1,204,113.36. Following the completion of the transaction, the insider directly owned 50,863 shares in the company, valued at approximately $6,384,323.76. This trade represents a 15.87% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 15,000 shares of Roku stock in a transaction on Monday, March 16th. The shares were sold at an average price of $94.23, for a total value of $1,413,450.00. Following the completion of the transaction, the chief financial officer owned 85,115 shares of the company’s stock, valued at approximately $8,020,386.45. This trade represents a 14.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 692,038 shares of company stock valued at $76,667,575. 13.45% of the stock is currently owned by company insiders.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in Roku by 2.5% in the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after buying an additional 322,858 shares in the last quarter. AQR Capital Management LLC raised its stake in Roku by 10.6% in the fourth quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock valued at $310,298,000 after buying an additional 274,024 shares in the last quarter. Geode Capital Management LLC raised its stake in Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock valued at $267,389,000 after buying an additional 168,214 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Roku by 229.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after buying an additional 1,419,772 shares in the last quarter. Finally, Holocene Advisors LP raised its stake in Roku by 352.3% in the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after buying an additional 1,285,585 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku launched Football Zone in the UK, adding a sports-focused destination that could help drive engagement and viewing time on the platform. Roku launches Football Zone in UK
• Positive Sentiment: The company also debuted Roku TV Smart Projectors in the UK, expanding its hardware footprint and reinforcing its strategy of making Roku a larger part of the home entertainment experience. Roku TV Smart Projectors debut in UK
• Positive Sentiment: Roku unveiled a new cinema-style streaming experience that is being positioned as a differentiator versus rival Fire TV devices, which may support the bullish narrative around Roku’s product innovation. Roku unveils largest-ever cinema-style experience, and rival Fire TV Sticks can’t match it
• Positive Sentiment: Coverage around Roku’s new way to stream TV and several articles noting free channel additions and creator-focused content suggest the company is broadening content offerings, which could improve user engagement and ad inventory. Forget Fire TV sticks, Roku is back with a totally new way to stream TV
• Neutral Sentiment: Analyst-style commentary continues to highlight Roku’s strong momentum and recent share-price strength, but this is more a validation of the trend than a new fundamental catalyst. Roku (ROKU) Valuation Check After Recent Share Price Momentum And Premium P/E Multiple

Roku Stock Up 3.0%

ROKU opened at $124.16 on Thursday. Roku has a 52 week low of $67.67 and a 52 week high of $131.39. The business has a fifty day simple moving average of $107.90 and a 200-day simple moving average of $103.27. The firm has a market cap of $18.30 billion, a P/E ratio of 93.35 and a beta of 2.04.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the business posted ($0.19) earnings per share. The company’s quarterly revenue was up 22.4% on a year-over-year basis. Sell-side analysts expect that Roku will post 2.41 earnings per share 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.