Roku Receives Strong-Buy Upgrade from Citizens Jmp

Citizens Jmp has upgraded the shares of Roku (NASDAQ:ROKU) to a strong-buy rating in a report that was released on Tuesday. This upgrade reflects growing confidence in the company's future prospects.

In addition to Citizens Jmp, several other analysts have expressed their views on Roku's stock. Bank of America raised their price target for Roku, increasing it from $75.00 to $90.00, while also giving the stock a "buy" rating. This move signals optimism regarding Roku's potential performance in the market.

Robert W. Baird has also made adjustments, upgrading Roku's rating from "neutral" to "outperform" and raising the target price from $70.00 to $90.00. This indicates a bullish outlook on Roku's ability to exceed market expectations.

Conversely, Jefferies Financial Group has taken a different stance by lowering their price objective for Roku from $60.00 to $55.00, assigning an "underperform" rating in their recent report. This suggests caution among certain investors regarding the stock's performance.

UBS Group initiated coverage on Roku with a "neutral" rating while setting a target price of $73.00. This aligns with a balanced approach to the stock amid varying opinions from the analysts.

Citigroup has also raised their price target on Roku from $60.00 to $77.00, maintaining a "neutral" rating. The different ratings reflect a mix of optimism and concern from various analysts.

In terms of overall ratings, three research analysts have issued sell ratings for Roku, while eight have given hold ratings. Furthermore, twelve analysts have assigned buy ratings, and two have placed the stock in the strong buy category. MarketBeat data indicates a consensus rating of "Moderate Buy" with an average target price of $83.18.

Roku Stock Performance

On Tuesday, shares of Roku opened at $83.78. The stock has experienced notable fluctuations over the past year, with a low of $48.33 and a high of $99.80. Its current 50-day moving average stands at $76.87, and the 200-day moving average is around $71.06. Roku's market capitalization is approximately $12.16 billion, with a price-to-earnings ratio of -69.82, suggesting a challenging earnings environment. Additionally, the stock has a beta of 2.05, indicating higher volatility compared to the broader market.

Roku's recent earnings report, announced on October 30th, revealed that the company reported an EPS of ($0.06) for the quarter, surpassing consensus estimates of ($0.35) by $0.29. The company experienced a negative return on equity of 7.22% and a negative net margin of 4.42%. For the quarter, Roku generated revenues of $1.06 billion, which exceeded the expected $1.02 billion. The revenue showed a growth of 16.5% compared to the previous year. Analysts predict an EPS of -1.09 for the current year.

Insider Activity

Recent insider activity has also drawn attention. Charles Collier, an insider, sold 10,771 shares of Roku on November 18th at an average price of $71.14, totaling around $766,248.93. Following this sale, Collier still holds 3,790 shares worth about $269,620.60, though this transaction marks a substantial decrease of 73.97% in his holdings.

Moreover, CFO Dan Jedda sold 1,000 shares of Roku on November 19th for an average price of $75.00, amounting to $75,000.00. After this transaction, Jedda retains 65,555 shares valued at approximately $4,916,625, marking a 1.50% reduction in his ownership. Over the last three months, insiders have sold a total of 73,095 shares valued at about $5,726,218. Currently, insiders own approximately 13.98% of Roku's stock.

Hedge Funds Weigh In On Roku

Several institutional investors have recently adjusted their positions in Roku. Robeco Institutional Asset Management B.V. increased its stake in Roku by 56.0% in the fourth quarter, acquiring 130,985 shares worth $9,737,000 after purchasing an additional 47,006 shares during the last quarter. SteelPeak Wealth LLC also entered a new stake in Roku worth about $258,000 during the same period.

PFG Investments LLC expanded its holdings in Roku by 4.9%, now owning 4,361 shares valued at $324,000 after acquiring 204 more shares. Jacksonville Wealth Management LLC also established a new position in Roku, valued at approximately $346,000. Moreover, Geneos Wealth Management Inc. boosted its stake by 369.9%, now holding 343 shares valued at $25,000 after acquiring an additional 270 shares. Overall, 86.30% of Roku's stock is currently held by institutional investors.

Roku Company Profile

Roku, Inc., together with its subsidiaries, operates a TV streaming platform both in the United States and internationally, functioning through two segments: Platform and Devices. The streaming platform enables users to find and access a wide array of content, including TV shows, movies, news, and sports. The Platform segment also encompasses digital advertising services, including direct and programmatic video advertising as well as media and entertainment promotional spending. Furthermore, it offers revenue-sharing options through subscription and transaction services, along with the sale of premium subscriptions and branded app buttons on remote controls.

Roku, Rating, Upgrade