Roku, Inc. (NASDAQ:ROKU) Receives Consensus Rating of “Hold” from Analysts

Roku, Inc. (NASDAQ:ROKU) has earned an average rating of “Hold” from the twenty-three ratings firms that are currently covering the firm, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and nine have assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $84.76.

Several equities analysts have issued reports on the stock. Wells Fargo & Company lowered their target price on shares of Roku from $51.00 to $45.00 and set an “underweight” rating on the stock in a research note on Friday, April 12th. Needham & Company LLC restated a “buy” rating and issued a $100.00 target price on shares of Roku in a report on Wednesday, February 21st. Benchmark reiterated a “buy” rating and set a $115.00 target price on shares of Roku in a research note on Friday, April 19th. Wedbush lowered their price target on Roku from $120.00 to $80.00 and set an “outperform” rating on the stock in a report on Friday, April 19th. Finally, Oppenheimer lowered Roku from an “outperform” rating to a “market perform” rating in a report on Friday, February 16th.

Roku Stock Up 5.4 %

Shares of NASDAQ ROKU opened at $61.74 on Wednesday. The firm has a market cap of $8.86 billion, a P/E ratio of -12.30 and a beta of 1.66. Roku has a twelve month low of $51.62 and a twelve month high of $108.84. The company has a 50 day moving average of $64.33 and a 200 day moving average of $78.82.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, February 15th. The company reported ($0.55) earnings per share for the quarter, topping the consensus estimate of ($0.65) by $0.10. Roku had a negative return on equity of 29.21% and a negative net margin of 20.36%. The firm had revenue of $984.40 million during the quarter, compared to analysts’ expectations of $967.72 million. During the same quarter in the previous year, the business earned ($1.70) earnings per share. The company’s revenue was up 13.5% on a year-over-year basis. As a group, equities analysts expect that Roku will post -2.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the sale, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, Director Jeffrey M. Blackburn purchased 8,000 shares of the stock in a transaction that occurred on Wednesday, March 13th. The stock was bought at an average cost of $63.96 per share, for a total transaction of $511,680.00. Following the completion of the transaction, the director now directly owns 8,000 shares in the company, valued at $511,680. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the transaction, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The disclosure for this sale can be found here. Insiders sold 54,545 shares of company stock valued at $4,364,035 in the last three months. Corporate insiders own 13.63% of the company’s stock.

Institutional Investors Weigh In On Roku

Institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC bought a new position in Roku during the 4th quarter valued at about $27,000. Creative Financial Designs Inc. ADV bought a new position in shares of Roku during the fourth quarter valued at approximately $29,000. Quarry LP boosted its stake in shares of Roku by 160.2% during the fourth quarter. Quarry LP now owns 432 shares of the company’s stock valued at $40,000 after purchasing an additional 266 shares during the period. Federated Hermes Inc. purchased a new position in Roku in the 3rd quarter worth about $37,000. Finally, Headinvest LLC bought a new stake in Roku during the 3rd quarter valued at about $42,000. 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.