Wedbush Reaffirms “Neutral” Rating for Roku (NASDAQ:ROKU)

Roku (NASDAQ:ROKU)‘s stock had its “neutral” rating restated by analysts at Wedbush in a note issued to investors on Thursday, Benzinga reports. They presently have a $155.00 price target on the stock. Wedbush’s target price would suggest a potential upside of 1.53% from the company’s previous close.

Several other equities research analysts also recently weighed in on the stock. Morgan Stanley raised their price target on shares of Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $160.00 target price on shares of Roku in a research report on Monday, August 10th. Oppenheimer downgraded shares of Roku from an “outperform” rating to a “market perform” rating in a research report on Monday, June 15th. Piper Sandler downgraded shares of Roku from an “overweight” rating to a “neutral” rating and lifted their target price for the stock from $148.00 to $160.00 in a research report on Tuesday, June 16th. Finally, Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $156.17.

Roku Stock Performance

Shares of ROKU traded down $0.01 on Thursday, hitting $152.67. 1,786,977 shares of the stock traded hands, compared to its average volume of 3,416,601. The company has a market capitalization of $22.66 billion, a PE ratio of 65.24 and a beta of 2.05. The business has a 50 day simple moving average of $152.54 and a 200 day simple moving average of $131.39. Roku has a one year low of $78.53 and a one year high of $159.89.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.47. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. The firm’s quarterly revenue was up 21.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.07 earnings per share. On average, equities analysts expect that Roku will post 2.92 earnings per share for the current year.

Insider Activity

In other news, CFO Dan Jedda sold 7,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $156.81, for a total transaction of $1,097,670.00. Following the completion of the sale, the chief financial officer owned 74,811 shares of the company’s stock, valued at $11,731,112.91. The trade was a 8.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 3,410 shares of the business’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $530,732.40. Following the sale, the insider directly owned 25,569 shares of the company’s stock, valued at approximately $3,979,559.16. The trade was a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 112,285 shares of company stock worth $16,939,414. Company insiders own 13.45% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of ROKU. Bayban boosted its holdings in Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after buying an additional 260 shares during the period. Elevation Wealth Partners LLC boosted its holdings in Roku by 208.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company’s stock worth $44,000 after buying an additional 215 shares during the period. Osbon Capital Management LLC bought a new position in Roku in the 4th quarter worth $45,000. Coppell Advisory Solutions LLC bought a new position in Roku in the 2nd quarter worth $47,000. Finally, Hilton Head Capital Partners LLC boosted its holdings in Roku by 175.0% in the 1st quarter. Hilton Head Capital Partners LLC now owns 550 shares of the company’s stock worth $52,000 after buying an additional 350 shares during the period. Institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. Its Roku operating system powers streaming players, Roku-branded televisions and smart-TV products made by licensing partners. The platform provides access to streaming services, live television, movies, music and other applications.

The company also operates The Roku Channel, its own ad-supported streaming service offering licensed and original content, including movies, television programs, live channels and premium subscription options.