Seaport Research Partners reissued their neutral rating on shares of Roku (NASDAQ:ROKU – Free Report) in a report issued on Friday, MarketBeat.com reports.
Other equities analysts have also recently issued research reports about the company. Citigroup raised their price target on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a report on Friday, July 17th. Oppenheimer lowered shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. JPMorgan Chase & Co. reissued a “neutral” rating and set a $160.00 price target (up from $150.00) on shares of Roku in a research note on Tuesday, June 16th. Evercore lowered shares of Roku from a “strong-buy” rating to a “hold” rating in a report on Monday, June 15th. Finally, Wells Fargo & Company increased their price objective on shares of Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a report on Friday, May 1st. Nine analysts have rated the stock with a Buy rating and eighteen have assigned a Hold rating to the company. According to MarketBeat.com, Roku has an average rating of “Hold” and a consensus price target of $155.75.
Check Out Our Latest Stock Analysis on Roku
Roku Trading Up 2.0%
Roku (NASDAQ:ROKU – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.47. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.95%. Roku’s revenue for the quarter was up 21.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.07 earnings per share. On average, equities research analysts forecast that Roku will post 2.41 earnings per share for the current fiscal year.
Insider Activity
In other news, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $142.51, for a total transaction of $2,926,870.38. Following the completion of the transaction, the insider directly owned 15,200 shares in the company, valued at approximately $2,166,152. The trade was a 57.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $122.56, for a total transaction of $857,920.00. Following the completion of the sale, the chief financial officer owned 71,115 shares in the company, valued at $8,715,854.40. This represents a 8.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 237,452 shares of company stock valued at $31,470,382. Insiders own 13.45% of the company’s stock.
Hedge Funds Weigh In On Roku
Hedge funds and other institutional investors have recently made changes to their positions in the company. Bank of New York Mellon Corp bought a new stake in shares of Roku in the 2nd quarter valued at $105,216,000. Ballast Inc. bought a new position in Roku during the second quarter worth about $222,000. Handelsbanken Fonder AB lifted its holdings in Roku by 12.5% during the second quarter. Handelsbanken Fonder AB now owns 41,400 shares of the company’s stock worth $5,719,000 after acquiring an additional 4,600 shares in the last quarter. Contravisory Investment Management Inc. acquired a new position in Roku in the second quarter valued at about $1,184,000. Finally, Legacy Wealth Asset Management LLC acquired a new position in Roku in the second quarter valued at about $325,000. 86.30% of the stock is owned by institutional investors.
Roku News Roundup
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates
- Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26%
- Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI
- Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results
- Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis
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.
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