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

Roku, Inc. (NASDAQ:ROKU) has received an average recommendation of “Moderate Buy” from the twenty-eight analysts that are covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a hold recommendation, twenty-three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $123.9583.

ROKU has been the topic of a number of recent analyst reports. Arete Research set a $132.00 target price on Roku and gave the stock a “buy” rating in a research report on Monday, January 5th. Guggenheim lifted their price target on Roku from $110.00 to $115.00 and gave the stock a “buy” rating in a research note on Thursday, December 4th. Raymond James Financial restated a “market perform” rating on shares of Roku in a report on Friday, October 31st. Weiss Ratings raised shares of Roku from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Tuesday, February 17th. Finally, Citigroup reissued an “outperform” rating on shares of Roku in a research report on Friday, January 9th.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku rolled out 17 new free channels on The Roku Channel, expanding content selection that can boost viewer engagement and ad-revenue potential for the platform. Roku quietly rolls out a major free upgrade for users
• Positive Sentiment: Analyst/investor coverage picked up — Zacks published pieces highlighting increased investor attention and listing Roku among must-watch streaming stocks — which can attract flows and re-rate sentiment after Roku’s recent earnings beat. Roku, Inc. (ROKU) is Attracting Investor Attention
• Positive Sentiment: New original/exclusive programming (example: The Reunion: Laguna Beach premiere on The Roku Channel) supports content-led engagement and subscription/ads upside on the platform. ‘The Reunion: Laguna Beach’ Gets Premiere Date On Roku Channel
• Neutral Sentiment: Retail discounting on Roku hardware (Streambar SE, Streaming Stick 4K, Streaming Stick Plus and Roku TV deals) is widespread — this likely boosts unit sales/market share but may compress hardware margins and lower ASPs. Coverage of these price cuts appeared across Gizmodo, Kotaku, Mashable and MSN. Roku’s 2-in-1 Soundbar and Streaming Combo Hits a New Low Roku Streambar SE Falls Below Its Black Friday Price The Roku Streaming Stick 4K is back on sale at Amazon
• Negative Sentiment: A Pocket-lint piece flags a limitation with the Roku Ultra’s Ethernet port that may surprise buyers — negative product PR can dent consumer confidence and complicate hardware upsell conversations. Your Roku Ultra’s Ethernet port doesn’t do what you think

Roku Price Performance

ROKU stock opened at $98.41 on Friday. The firm has a market cap of $14.51 billion, a PE ratio of 172.65 and a beta of 1.99. Roku has a 12 month low of $52.43 and a 12 month high of $116.66. The firm has a 50 day simple moving average of $100.54 and a 200 day simple moving average of $99.17.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The firm had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same quarter in the previous year, the business posted ($0.24) earnings per share. The firm’s quarterly revenue was up 16.1% compared to the same quarter last year. As a group, sell-side analysts expect that Roku will post -0.3 earnings per share for the current year.

Insider Activity

In other Roku news, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $107.56, for a total transaction of $322,680.00. Following the transaction, the chief financial officer directly owned 87,267 shares in the company, valued at approximately $9,386,438.52. The trade was a 3.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total value of $192,960.00. Following the completion of the sale, the director owned 7,782 shares of the company’s stock, valued at $750,807.36. The trade was a 20.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 219,710 shares of company stock worth $22,761,608. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Hedge funds have recently bought and sold shares of the business. CWM LLC boosted its stake in Roku by 345.4% during the third quarter. CWM LLC now owns 84,010 shares of the company’s stock worth $8,412,000 after buying an additional 65,150 shares in the last quarter. Accurate Wealth Management LLC bought a new position in shares of Roku during the 3rd quarter worth about $1,115,000. AGF Management Ltd. bought a new position in shares of Roku during the 3rd quarter worth about $15,023,000. Monetta Financial Services Inc. boosted its position in shares of Roku by 50.0% during the 2nd quarter. Monetta Financial Services Inc. now owns 15,000 shares of the company’s stock valued at $1,318,000 after acquiring an additional 5,000 shares in the last quarter. Finally, Convergence Investment Partners LLC bought a new stake in Roku in the third quarter valued at about $2,492,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.