Roku (NASDAQ:ROKU) Receives “Market Outperform” Rating from JMP Securities

JMP Securities reiterated their market outperform rating on shares of Roku (NASDAQ:ROKU) in a research note released on Tuesday morning,Benzinga reports. The firm currently has a $110.00 price target on the stock.

Other equities research analysts have also recently issued reports about the stock. Wall Street Zen upgraded shares of Roku from a “hold” rating to a “buy” rating in a report on Saturday, July 26th. Susquehanna boosted their price objective on shares of Roku from $85.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, August 1st. Loop Capital upgraded shares of Roku from a “hold” rating to a “buy” rating and increased their target price for the company from $80.00 to $100.00 in a research note on Tuesday, June 17th. KeyCorp increased their target price on shares of Roku from $115.00 to $116.00 and gave the company an “overweight” rating in a research note on Friday, August 1st. Finally, Wedbush reiterated an “outperform” rating and issued a $100.00 target price on shares of Roku in a research note on Monday, July 28th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $98.96.

Roku Price Performance

ROKU stock opened at $95.86 on Tuesday. Roku has a 52-week low of $52.43 and a 52-week high of $104.96. The company has a 50-day moving average of $89.47 and a two-hundred day moving average of $78.15. The stock has a market capitalization of $14.12 billion, a price-to-earnings ratio of -228.24, a price-to-earnings-growth ratio of 13.52 and a beta of 2.05.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The company had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.07 billion. During the same period in the prior year, the company earned ($0.18) earnings per share. The business’s quarterly revenue was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts expect that Roku will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 3,000 shares of the firm’s stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $90.20, for a total transaction of $270,600.00. Following the completion of the transaction, the chief financial officer owned 76,132 shares in the company, valued at $6,867,106.40. This trade represents a 3.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $89.64, for a total transaction of $2,241,000.00. Following the transaction, the chief executive officer owned 11,953 shares of the company’s stock, valued at approximately $1,071,466.92. This represents a 67.65% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 324,873 shares of company stock worth $29,745,042 in the last three months. 13.98% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Several hedge funds have recently modified their holdings of ROKU. Tableaux LLC acquired a new stake in shares of Roku during the second quarter worth approximately $1,746,000. Acadian Asset Management LLC increased its holdings in shares of Roku by 456.7% during the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company’s stock worth $134,222,000 after buying an additional 1,563,449 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its holdings in shares of Roku by 505.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock worth $96,402,000 after buying an additional 1,082,548 shares in the last quarter. Two Sigma Investments LP increased its holdings in shares of Roku by 149.8% during the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company’s stock worth $90,017,000 after buying an additional 726,077 shares in the last quarter. Finally, Duquesne Family Office LLC increased its holdings in shares of Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock worth $96,723,000 after buying an additional 606,900 shares in the last quarter. Institutional investors and hedge funds 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.