Roku (NASDAQ:ROKU) Shares Experience Slight Uptick After Analyst Upgrade

On Tuesday, Roku, Inc. (NASDAQ:ROKU) saw its stock rise by 0.2% following an upgrade from Loop Capital, which increased its price target for the company from $70.00 to $80.00. The firm currently maintains a hold rating on Roku. During trading, Roku reached a high of $85.28 before settling at $84.27. A total of 415,774 shares were exchanged, significantly lower than the average daily volume of 4,425,088 shares. Prior to this increase, the stock closed at $84.12.

Roku's Future Prospects

Various other analysts have also provided insights on Roku's performance. For instance, Moffett Nathanson recently upgraded the company from a "sell" to a "neutral" rating, with a price target set at $80.00 in a report dated October 1st. Guggenheim improved its rating from "neutral" to "buy" on August 23rd, establishing a target price of $75.00. Meanwhile, Macquarie reaffirmed its "outperform" rating with a $90.00 target price in a report published on October 31st. Bank of America increased its price target for Roku from $75.00 to $90.00 and maintained a "buy" rating as of September 30th. Recently, JPMorgan Chase & Co. raised its target from $90.00 to $92.00, rating the stock as "overweight." Overall, analysts appear cautiously optimistic, with two advising a sell, nine advocating for a hold, twelve promoting a buy, and one suggesting a strong buy. According to MarketBeat data, Roku currently holds a consensus rating of "Moderate Buy" with an average price target of $83.81.

Recent Insider Activity

In other business news, CEO Anthony J. Wood sold 25,000 shares of Roku on September 12th at an average price of $75.00, equating to a transaction valued at $1,875,000. After this, Wood retains a direct ownership of 5,020 shares valued at $376,500. This sale represents an 83.28% reduction in his position. Likewise, insider Charles Collier sold 15,454 shares on the same day at the same price, totaling $1,159,050, leaving him with 200 shares valued at $15,000, marking a significant 98.72% decrease in his holdings. In total, insiders have sold 88,550 shares worth around $6,621,873 over the last quarter, with insider ownership accounting for approximately 13.98% of the stock.

Institutional Investments and Changes

Institutional investors have also adjusted their positions in Roku. FMR LLC increased its holdings in Roku by 1.7% in Q3, owning 14,570,372 shares now worth about $1,087,824,000 after buying an extra 244,793 shares. ARK Investment Management LLC also raised its stake by 1.3% in Q2, now holding 12,716,432 shares valued at $762,096,000 after a purchase of 159,785 additional shares. Holocene Advisors LP entered Roku with a new stake in Q3 valued at roughly $129,015,000. Westfield Capital Management Co. LP significantly raised its ownership by 126.1% in Q3, adding 856,401 shares to own a total of 1,535,576 shares worth $114,646,000. Additionally, Charles Schwab Investment Management Inc. increased its stake by 3.2%, concluding the third quarter with 955,969 shares valued at $71,373,000. Overall, hedge funds and institutional investors command around 86.30% of Roku's stock.

Current Trading Status and Financial Overview

Roku's most recent trading report showed a 50-day moving average of $74.41 and a 200-day average of $66.31. The stock possesses a market capitalization of $12.24 billion, a price-to-earnings ratio of -70.22, and a beta of 2.06. Roku reported its earnings on October 30th, disclosing a loss of ($0.06) per share for the quarter, surpassing the estimated loss of ($0.35) by $0.29. The company generated revenue of $1.06 billion, exceeding the expected $1.02 billion. Roku experienced a net margin of -4.42% and a return on equity of -7.22%, while its revenue increased by 16.5% compared to the same quarter last year. Analysts predict that Roku, Inc. will report an EPS of -1.1 for the current fiscal year.

About Roku, Inc.

Roku, Inc., along with its subsidiaries, operates a TV streaming platform both in the United States and globally. The company is divided into two segments: Platform and Devices. Its streaming service provides users with access to movies, TV shows, sports, news, and more. The Platform segment focuses on digital advertising, offering both direct and programmatic video advertising, promotional spending on media and entertainment, as well as revenue shares from streaming services and the sale of premium subscriptions.

Roku, Upgrade, Stocks