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

Shares of Roku, Inc. (NASDAQ:ROKU) have received an average rating of “Moderate Buy” from the twenty-nine ratings firms that are covering the firm, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and twenty-three have assigned a buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $119.32.

A number of brokerages recently issued reports on ROKU. Citizens Jmp reissued a “market outperform” rating and set a $145.00 price target on shares of Roku in a research report on Tuesday, December 2nd. Wells Fargo & Company reissued an “overweight” rating on shares of Roku in a report on Monday, January 5th. Benchmark reaffirmed a “buy” rating on shares of Roku in a report on Monday, October 27th. Rosenblatt Securities upped their price objective on shares of Roku from $101.00 to $106.00 and gave the stock a “neutral” rating in a research report on Friday, October 31st. Finally, Bank of America increased their price objective on shares of Roku from $115.00 to $140.00 and gave the company a “buy” rating in a research note on Monday.

Roku Trading Down 0.9%

NASDAQ:ROKU opened at $104.01 on Friday. The stock has a 50 day simple moving average of $104.31 and a 200 day simple moving average of $97.82. Roku has a 1-year low of $52.43 and a 1-year high of $116.66. The stock has a market cap of $15.37 billion, a P/E ratio of -521.93 and a beta of 1.95.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the previous year, the business posted ($0.06) earnings per share. Roku’s quarterly revenue was up 14.0% on a year-over-year basis. As a group, sell-side analysts forecast that Roku will post -0.3 EPS for the current year.

Insider Activity

In related news, insider Charles Collier sold 118,088 shares of the business’s stock in a transaction on Friday, October 31st. The stock was sold at an average price of $115.00, for a total transaction of $13,580,120.00. Following the sale, the insider owned 200 shares in the company, valued at $23,000. The trade was a 99.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 75,000 shares of the company’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $109.61, for a total value of $8,220,750.00. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 393,282 shares of company stock worth $42,591,859. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. GAMMA Investing LLC lifted its holdings in shares of Roku by 9.5% in the third quarter. GAMMA Investing LLC now owns 1,114 shares of the company’s stock valued at $112,000 after purchasing an additional 97 shares in the last quarter. Cornerstone Wealth Management LLC raised its stake in Roku by 3.8% in the 3rd quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company’s stock valued at $273,000 after acquiring an additional 100 shares during the period. Thoroughbred Financial Services LLC boosted its position in Roku by 1.0% during the third quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock worth $995,000 after purchasing an additional 100 shares during the period. Aviance Capital Partners LLC boosted its position in Roku by 2.6% during the third quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company’s stock worth $418,000 after purchasing an additional 106 shares during the period. Finally, O Keefe Stevens Advisory Inc. increased its stake in shares of Roku by 1.8% in the third quarter. O Keefe Stevens Advisory Inc. now owns 6,233 shares of the company’s stock worth $624,000 after purchasing an additional 113 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.