Roku (NASDAQ:ROKU) Cut to Hold at Rosenblatt Securities

Rosenblatt Securities downgraded shares of Roku (NASDAQ:ROKU) from a buy rating to a hold rating in a research report report published on Tuesday, Marketbeat.com reports. Rosenblatt Securities currently has $160.00 price objective on the stock.

Other equities analysts have also issued reports about the company. JPMorgan Chase & Co. began coverage on Roku in a report on Monday, August 24th. They set a “neutral” rating and a $160.00 target price on the stock. Citigroup upped their target price on shares of Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a research note on Friday, July 17th. Wedbush reissued a “neutral” rating and set a $155.00 price objective on shares of Roku in a report on Thursday, September 24th. BMO Capital Markets upgraded shares of Roku from a “market perform” rating to an “outperform” rating in a research report on Tuesday. Finally, Needham & Company LLC reiterated a “buy” rating on shares of Roku in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eighteen have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $156.17.

Roku Stock Down 1.5%

ROKU stock opened at $160.37 on Tuesday. The company has a 50 day moving average of $155.25 and a two-hundred day moving average of $128.63. Roku has a 12-month low of $78.53 and a 12-month high of $163.57. The company has a market cap of $23.80 billion, a price-to-earnings ratio of 47.46 and a beta of 2.12.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Monday, November 2nd. The company reported $1.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.65. Roku had a return on equity of 18.65% and a net margin of 9.34%. The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same quarter last year, the firm earned $0.16 earnings per share. The business’s revenue for the quarter was up 24.1% on a year-over-year basis. On average, research analysts anticipate that Roku will post 3.28 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, Director Neil Hunt sold 2,000 shares of the company’s stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $156.17, for a total transaction of $312,340.00. Following the completion of the sale, the director owned 9,629 shares in the company, valued at approximately $1,503,760.93. The trade was a 17.20% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,538 shares of the stock in a transaction on Monday, October 5th. The shares were sold at an average price of $151.63, for a total value of $3,114,176.94. Following the completion of the transaction, the insider directly owned 22,700 shares in the company, valued at approximately $3,442,001. This trade represents a 47.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 88,028 shares of company stock valued at $13,645,922 over the last 90 days. Company insiders own 13.45% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently modified their holdings of ROKU. Maryland State Retirement & Pension System lifted its position in shares of Roku by 12.8% during the 3rd quarter. Maryland State Retirement & Pension System now owns 7,952 shares of the company’s stock worth $1,211,000 after buying an additional 901 shares in the last quarter. Jacobi Capital Management LLC bought a new position in shares of Roku during the 3rd quarter worth $89,000. Machina Capital S.A.S. boosted its position in Roku by 1,142.5% during the third quarter. Machina Capital S.A.S. now owns 33,174 shares of the company’s stock worth $5,052,000 after purchasing an additional 30,504 shares during the period. Lido Advisors LLC boosted its holdings in Roku by 3.3% in the 3rd quarter. Lido Advisors LLC now owns 53,566 shares of the company’s stock worth $8,157,000 after buying an additional 1,697 shares during the period. Finally, New York Life Investment Management LLC boosted its holdings in shares of Roku by 289.7% in the third quarter. New York Life Investment Management LLC now owns 62,409 shares of the company’s stock worth $9,504,000 after acquiring an additional 46,395 shares during the period. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku’s latest quarter came in well ahead of expectations: revenue rose 24.1% year over year to $1.50 billion, while EPS was $1.20 versus the $0.55 consensus. The earnings beat has helped support the stock’s recent rally. Roku shares rise after earnings beat
• Positive Sentiment: Recent articles highlight Roku’s fresh 52-week high and strong momentum. Zacks’ momentum-focused coverage and technical commentary about shares moving above a key moving average may attract trend-following investors. Roku momentum coverage
• Neutral Sentiment: Director Neil Hunt sold 2,000 shares through a pre-arranged Rule 10b5-1 plan. The planned sale is less informative about his near-term outlook than an unplanned transaction. SEC filing for director share sale
• Negative Sentiment: Analyst sentiment suggests limited upside after the rally: the reported consensus rating is “Hold,” and the average price target of $156.17 is below the recent trading level. This valuation gap could encourage profit-taking. Roku analyst price target
• Negative Sentiment: Roku’s decision to retire a popular aquatic-life screensaver drew complaints from some users. The customer reaction appears modest compared with earnings and valuation factors, but could weigh slightly on sentiment. Coverage of screensaver change

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.