Roku (NASDAQ:ROKU) Upgraded by Zacks Research to “Strong-Buy” Rating

Roku (NASDAQ:ROKU) was upgraded by Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other analysts have also issued reports about the company. Rosenblatt Securities reissued a “buy” rating and set a $160.00 target price on shares of Roku in a report on Monday. Evercore cut shares of Roku from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 15th. Weiss Ratings upgraded shares of Roku from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday. Benchmark raised their target price on shares of Roku from $130.00 to $160.00 and gave the company a “buy” rating in a report on Friday, May 1st. Finally, Piper Sandler cut shares of Roku from an “overweight” rating to a “neutral” rating and boosted their target price for the company from $148.00 to $160.00 in a research report on Tuesday, June 16th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eighteen have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $156.25.

Roku Trading Up 0.6%

Shares of ROKU stock opened at $151.79 on Tuesday. The stock has a market cap of $22.38 billion, a P/E ratio of 64.87 and a beta of 2.01. The stock has a 50 day simple moving average of $139.92 and a 200 day simple moving average of $117.37. Roku has a 1 year low of $78.53 and a 1 year high of $153.54.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.47. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%.The company’s revenue was up 21.9% on a year-over-year basis. During the same quarter last year, the company earned $0.07 EPS. Analysts forecast that Roku will post 2.82 EPS for the current year.

Insider Activity

In other news, CAO Matthew C. Banks sold 552 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $146.25, for a total transaction of $80,730.00. Following the completion of the transaction, the chief accounting officer directly owned 6,619 shares in the company, valued at approximately $968,028.75. This represents a 7.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $143.87, for a total value of $1,007,090.00. Following the sale, the chief financial officer directly owned 79,963 shares in the company, valued at approximately $11,504,276.81. This trade represents a 8.05% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 162,452 shares of company stock valued at $21,811,132. 13.45% of the stock is currently owned by insiders.

Institutional Trading of Roku

A number of hedge funds have recently made changes to their positions in the company. Raleigh Capital Management Inc. raised its holdings in Roku by 6.5% during the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock valued at $144,000 after buying an additional 93 shares during the last quarter. Apollon Wealth Management LLC grew its holdings in Roku by 1.5% in the 4th quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company’s stock worth $700,000 after acquiring an additional 96 shares during the last quarter. Quantum Portfolio Management LLC increased its position in shares of Roku by 2.6% in the first quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock valued at $391,000 after acquiring an additional 105 shares during the period. HB Wealth Management LLC increased its position in shares of Roku by 3.7% in the first quarter. HB Wealth Management LLC now owns 3,447 shares of the company’s stock valued at $326,000 after acquiring an additional 122 shares during the period. Finally, Quarry LP raised its stake in shares of Roku by 21.7% during the fourth quarter. Quarry LP now owns 689 shares of the company’s stock valued at $75,000 after acquiring an additional 123 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Analyst and momentum support: Rosenblatt Securities reaffirmed its “Buy” rating, and Zacks added Roku to its Rank #1 (Strong Buy) momentum list. Zacks also cited favorable earnings-estimate revisions as a reason Roku could continue moving higher. Rosenblatt Securities Reaffirms Buy Rating for Roku Why Roku Might Be Well Poised for a Surge
• Positive Sentiment: Programming expansion: Roku has added six free channels and launched additional original or themed programming, potentially increasing platform engagement, advertising inventory and the value of its streaming ecosystem. Roku Quietly Adds Six More Free Channels
• Neutral Sentiment: Potential Fox transaction: Reports describe how Lachlan Murdoch courted Roku in connection with a deal valued at approximately $22 billion. The transaction could create strategic and valuation implications, but investors will need clarity on terms, timing and the effect on Roku shareholders. How Lachlan Murdoch Courted Roku to Seal a $22 Billion Deal
• Neutral Sentiment: AI-generated channel: Roku launched Fairground TV, a 24/7 channel using AI-generated programming and advertising. The initiative could materially reduce content costs and provide a low-cost way to expand its ad-supported offering, but its commercial appeal remains unproven. AI Slop or Streaming’s Future? Inside Roku’s Fairground TV Gamble
• Negative Sentiment: Brand and content-quality concerns: Several reports sharply criticized Fairground TV as low-quality “AI slop.” Negative consumer and industry reaction could hurt Roku’s brand, viewer engagement and advertiser perception if the channel fails to attract audiences. Nightmare Fodder: Roku’s AI Slop Channel
• Negative Sentiment: Valuation and risk concerns: A Seeking Alpha analysis recommended selling alongside insiders and highlighted debt, execution risks and uncertainty around potential Fox synergies, tempering the bullish analyst commentary. Roku: Sell Alongside Insiders

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.