Roku (ROKU) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Roku (NASDAQ:ROKU) from a hold rating to a buy rating in a research report released on Tuesday. The brokerage currently has $65.00 price target on the stock.

According to Zacks, “Roku, Inc. is involved in creating streaming platform for delivering entertainment to the television. The Company’s products primarily includes Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories such as cables, remote controls, power adapters and headphones. It operates primarily in the United States, Canada, the United Kingdom, the Republic of Ireland, Mexico and France. Roku, Inc. is based in SARATOGA, United States. “

Other equities analysts have also issued reports about the stock. Guggenheim initiated coverage on shares of Roku in a report on Tuesday, September 4th. They issued a buy rating and a $74.00 target price on the stock. Needham & Company LLC reiterated a buy rating and issued a $60.00 target price (up from $50.00) on shares of Roku in a report on Monday, July 23rd. Cannonball Research boosted their target price on shares of Roku from $68.00 to $97.00 and gave the company a buy rating in a report on Monday, October 1st. Our analysis of the composition of advertising revenue growth gives us incremental comfort with our revenue forecast for FY18-20. It also supports our Buy thesis based on the belief that ROKU works only if the advertising revenue story works. We think that inventory sell through which has been a relatively small revenue driver so far can become more significant in the mid-term. ValuEngine upgraded shares of Roku from a hold rating to a buy rating in a report on Wednesday, October 3rd. Finally, BidaskClub lowered shares of Roku from a strong-buy rating to a buy rating in a report on Thursday, October 11th. Four research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $65.61.

NASDAQ:ROKU traded down $1.80 on Tuesday, hitting $43.94. The stock had a trading volume of 14,365,021 shares, compared to its average volume of 8,045,739. The firm has a market capitalization of $6.24 billion, a price-to-earnings ratio of -19.62 and a beta of 3.59. Roku has a 1-year low of $29.00 and a 1-year high of $77.57.

Roku (NASDAQ:ROKU) last posted its earnings results on Wednesday, November 7th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.03. The company had revenue of $173.40 million for the quarter, compared to analyst estimates of $170.73 million. Roku had a negative net margin of 1.33% and a negative return on equity of 4.68%. Roku’s revenue was up 38.9% on a year-over-year basis. During the same period in the previous year, the business posted ($0.10) EPS. Sell-side analysts anticipate that Roku will post -0.14 EPS for the current year.

In other news, SVP Stephen H. Kay sold 36,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 4th. The shares were sold at an average price of $60.89, for a total value of $2,192,040.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Anthony J. Wood sold 370,486 shares of the company’s stock in a transaction that occurred on Tuesday, August 14th. The stock was sold at an average price of $57.10, for a total transaction of $21,154,750.60. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,206,975 shares of company stock worth $76,984,919. Company insiders own 0.55% of the company’s stock.

Several hedge funds have recently modified their holdings of ROKU. Stratos Wealth Partners LTD. acquired a new position in shares of Roku in the 3rd quarter worth approximately $130,000. SevenBridge Financial Group LLC acquired a new position in shares of Roku in the 2nd quarter worth approximately $158,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of Roku in the 3rd quarter worth approximately $168,000. Gabelli Funds LLC acquired a new stake in Roku during the 2nd quarter worth approximately $213,000. Finally, Cynosure Advisors LLC acquired a new stake in Roku during the 2nd quarter worth approximately $217,000. Hedge funds and other institutional investors own 33.34% of the company’s stock.

About Roku

Roku, Inc operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts.

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