Wedbush Has Positive Forecast for Roku FY2024 Earnings

Roku, Inc. (NASDAQ:ROKU) – Analysts at Wedbush raised their FY2024 earnings estimates for Roku in a report released on Wednesday, January 8th. Wedbush analyst A. Reese now anticipates that the company will earn ($1.09) per share for the year, up from their prior forecast of ($1.19). Wedbush currently has a “Outperform” rating and a $100.00 target price on the stock. The consensus estimate for Roku’s current full-year earnings is ($1.10) per share. Wedbush also issued estimates for Roku’s Q4 2024 earnings at ($0.43) EPS, Q3 2025 earnings at ($0.08) EPS, Q4 2025 earnings at ($0.20) EPS and FY2025 earnings at ($0.96) EPS.

Roku (NASDAQ:ROKU) last posted its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. The firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company’s revenue was up 16.5% on a year-over-year basis. During the same period last year, the firm posted ($2.33) EPS.

Other equities analysts also recently issued reports about the company. Morgan Stanley lifted their price target on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a report on Tuesday, October 29th. Jefferies Financial Group dropped their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Wolfe Research raised Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price for the company in a report on Thursday, September 12th. Citigroup boosted their price target on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Finally, Benchmark reiterated a “buy” rating and set a $105.00 price objective on shares of Roku in a research report on Thursday, September 12th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Price Performance

ROKU opened at $83.00 on Friday. The stock’s 50 day simple moving average is $75.61 and its 200 day simple moving average is $69.80. Roku has a 1-year low of $48.33 and a 1-year high of $99.80. The stock has a market cap of $12.05 billion, a P/E ratio of -69.17 and a beta of 2.05.

Institutional Investors Weigh In On Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Holocene Advisors LP purchased a new position in shares of Roku in the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP lifted its position in shares of Roku by 126.1% during the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares during the last quarter. Point72 Asset Management L.P. raised its stake in shares of Roku by 352.5% during the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after acquiring an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP lifted its stake in Roku by 470.2% in the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after acquiring an additional 445,777 shares during the period. Finally, FMR LLC increased its holdings in shares of Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after acquiring an additional 244,793 shares during the period. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Insider Buying and Selling at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $82.73, for a total value of $82,730.00. Following the sale, the chief financial officer now directly owns 64,555 shares of the company’s stock, valued at $5,340,635.15. The trade was a 1.53 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. This represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 48,095 shares of company stock worth $3,731,038 in the last quarter. 13.98% of the stock is currently owned by company insiders.

Roku Company Profile

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.