Roku (NASDAQ:ROKU) Stock Rating Lowered by Wall Street Zen

Roku (NASDAQ:ROKU) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

A number of other brokerages also recently issued reports on ROKU. Piper Sandler lifted their price target on Roku from $65.00 to $84.00 and gave the company a “neutral” rating in a research report on Thursday, July 10th. UBS Group lifted their price target on Roku from $72.00 to $95.00 and gave the company a “neutral” rating in a research report on Friday, August 1st. Loop Capital upgraded Roku from a “hold” rating to a “buy” rating and lifted their price target for the company from $80.00 to $100.00 in a research report on Tuesday, June 17th. Needham & Company LLC restated a “buy” rating and issued a $110.00 target price on shares of Roku in a research report on Wednesday, October 1st. Finally, Pivotal Research boosted their target price on Roku from $100.00 to $120.00 and gave the stock a “buy” rating in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $101.33.

Roku Stock Down 5.3%

Shares of NASDAQ ROKU opened at $92.02 on Friday. Roku has a 52 week low of $52.43 and a 52 week high of $107.25. The business has a 50-day simple moving average of $94.90 and a two-hundred day simple moving average of $81.79. The company has a market cap of $13.56 billion, a P/E ratio of -219.10, a P/E/G ratio of 12.88 and a beta of 2.13.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.23. The firm had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The company’s revenue for the quarter was up 14.7% on a year-over-year basis. During the same quarter last year, the company posted ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts anticipate that Roku will post -0.3 EPS for the current year.

Insiders Place Their Bets

In other Roku news, insider Mustafa Ozgen sold 50,527 shares of Roku stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $100.00, for a total value of $5,052,700.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $82.42, for a total value of $2,060,500.00. Following the completion of the transaction, the chief executive officer directly owned 16,441 shares in the company, valued at $1,355,067.22. This trade represents a 60.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 518,890 shares of company stock valued at $50,737,151 in the last ninety days. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Large investors have recently bought and sold shares of the stock. Tableaux LLC purchased a new position in shares of Roku during the second quarter valued at approximately $1,746,000. Acadian Asset Management LLC increased its stake in shares of Roku by 456.7% during the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company’s stock valued at $134,222,000 after buying an additional 1,563,449 shares during the period. Duquesne Family Office LLC increased its stake in shares of Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock valued at $96,723,000 after buying an additional 606,900 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in shares of Roku by 38,431.7% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company’s stock valued at $34,470,000 after buying an additional 488,083 shares during the period. Finally, AQR Capital Management LLC increased its stake in shares of Roku by 491.5% during the first quarter. AQR Capital Management LLC now owns 562,027 shares of the company’s stock valued at $38,943,000 after buying an additional 467,005 shares during the period. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.