Roku (NASDAQ:ROKU) Earns Neutral Rating from Analysts at UBS Group

UBS Group initiated coverage on shares of Roku (NASDAQ:ROKU) in a report published on Friday morning, MarketBeat Ratings reports. The brokerage issued a neutral rating and a $73.00 price objective on the stock.

ROKU has been the topic of a number of other reports. Wolfe Research upgraded shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a research report on Thursday, September 12th. Citigroup increased their target price on shares of Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. Loop Capital boosted their price target on shares of Roku from $65.00 to $70.00 and gave the stock a “hold” rating in a research note on Thursday, October 31st. Wedbush raised their price objective on Roku from $75.00 to $85.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. Finally, JPMorgan Chase & Co. boosted their target price on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $84.14.

Roku Stock Performance

Roku stock opened at $68.22 on Friday. Roku has a fifty-two week low of $48.33 and a fifty-two week high of $108.84. The stock has a market cap of $9.91 billion, a P/E ratio of -56.85 and a beta of 2.07. The firm’s fifty day moving average price is $74.45 and its 200-day moving average price is $65.13.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter last year, the business posted ($2.33) earnings per share. The company’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, analysts predict that Roku will post -1.1 earnings per share for the current year.

Insider Activity

In other news, insider Gilbert Fuchsberg sold 1,693 shares of the firm’s stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total value of $109,012.27. Following the completion of the transaction, the insider now owns 38,602 shares in the company, valued at $2,485,582.78. This trade represents a 4.20 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the sale, the chief executive officer now owns 5,020 shares in the company, valued at $376,500. This represents a 83.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 90,240 shares of company stock valued at $6,729,582. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. FMR LLC boosted its stake in Roku by 1.7% during the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after acquiring an additional 244,793 shares in the last quarter. ARK Investment Management LLC boosted its position in shares of Roku by 1.3% in the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after purchasing an additional 159,785 shares in the last quarter. Holocene Advisors LP purchased a new stake in shares of Roku in the 3rd quarter worth approximately $129,015,000. Westfield Capital Management Co. LP grew its stake in shares of Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after buying an additional 856,401 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in Roku by 3.2% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock valued at $71,373,000 after buying an additional 30,038 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors.

About Roku

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.