Roku Stock Price Rises After Analyst Upgrade

Roku, Inc. (NASDAQ:ROKU) experienced a slight increase in stock price, rising 0.2% on Tuesday. This uptick followed an analyst upgrade from Loop Capital, which raised its price target on Roku’s stock from $70.00 to $80.00. Loop Capital maintains a hold rating on the stock.

During trading, Roku shares reached as high as $85.28 before closing at $84.27. The trading session saw a volume of 415,774 shares, marking a significant decline of 91% compared to the average session volume of 4,425,088 shares. The stock had closed the previous day at $84.12.

Analyst Insights

In addition to Loop Capital's upgrade, other analysts have also shared their insights on Roku. Guggenheim upgraded Roku shares from a “neutral” rating to a “buy” with a price target set at $75.00 as of August 23rd. Meanwhile, Morgan Stanley raised its price target from $60.00 to $65.00 but maintained an “underweight” rating as of October 29th.

Jefferies Financial Group adjusted its price estimate down from $60.00 to $55.00, giving Roku an “underperform” rating as of November 1st. However, Wedbush maintained an “outperform” rating and increased its target price for Roku shares to $100.00, up from a previous target of $85.00.

Wells Fargo also raised its price target from $72.00 to $74.00, while assigning an “equal weight” rating as of October 31st. The consensus among analysts for Roku indicates that there are two sell ratings, nine hold ratings, twelve buy ratings, and one strong buy rating. Overall, the stock has an average target price of $83.81 and a consensus rating classified as “Moderate Buy” according to MarketBeat.

Insider Trading Activity

In recent developments, insider Charles Collier sold 15,454 shares of Roku on September 12th at an average price of $75.00, totaling approximately $1,159,050. Following this transaction, he holds just 200 shares valued at $15,000, indicating a 98.72% decrease in his Roku shares. The details of this transaction were disclosed in a filing with the SEC.

Additionally, CEO Anthony J. Wood sold 25,000 shares on the same day at an average price of $75.00, accumulating $1,875,000 in total. After the sale, he retains 5,020 shares valued at roughly $376,500, reflecting an 83.28% decrease in his share ownership. In the last 90 days, insiders collectively sold 88,550 shares for a total of $6,621,873. Insiders currently own 13.98% of Roku's outstanding shares.

Institutional Investor Activity

Recent trading activity also indicates increased participation from institutional investors. GS Investments Inc. increased its position in Roku by 33.4% during the third quarter, now owning 587 shares valued at $44,000 post-acquisition of 147 additional shares. PFG Investments LLC raised its holdings by 3.7%, now holding 4,157 shares valued at $310,000 after adding 150 shares.

True Vision MN LLC increased its Roku holdings by 3.1%, owning 5,018 shares valued at $375,000 after buying 152 shares. Furthermore, Mcdonald Partners LLC grew its holdings by 0.9% in the second quarter, now owning 19,608 shares worth $1,175,000 after acquiring 175 shares. Lastly, Sequoia Financial Advisors LLC increased its position by 4.5%, with 4,721 shares valued at $352,000 after a purchase of 202 shares. Notably, approximately 86.30% of Roku’s shares are held by institutional investors.

Roku's Recent Performance and Company Profile

Roku’s stock has shown considerable resilience, with a 50-day moving average of $74.56 and a 200-day moving average of $66.49. The company boasts a market capitalization of $11.88 billion, a P/E ratio of -68.18, and a beta of 2.06.

Roku recently disclosed its quarterly earnings report on October 30th, revealing earnings per share of ($0.06) for the quarter, surpassing the consensus estimate of ($0.35) by $0.29. The company registered a negative return on equity of 7.22% and a net margin of -4.42%. With a revenue of $1.06 billion for the quarter, it outperformed analysts’ expectations of $1.02 billion, indicating a year-over-year revenue growth of 16.5%. Looking ahead, analysts expect Roku to post earnings per share of -1.1 for the current year.

Roku, Inc. operates a TV streaming platform both in the United States and internationally, focusing on two major segments: Platform and Devices. The platform enables users to access various content, including TV shows, movies, news, and sports. The platform segment also encompasses digital advertising and distribution of streaming services, which includes revenue shares from subscriptions and transactions.

Roku, Stocks, Analyst