Roku, Inc. (NASDAQ:ROKU) Stock Now Rated “Hold” by Wall Street Brokerages

Shares of Roku, Inc. (NASDAQ:ROKU) have earned a consensus recommendation of “Hold” from the twenty-seven analysts that are currently covering the stock, MarketBeat Ratings reports. Nineteen equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among analysts that have covered the stock in the last year is $156.17.

Several brokerages recently issued reports on ROKU. Rosenblatt Securities reaffirmed a “buy” rating and set a $160.00 target price on shares of Roku in a research report on Monday, August 10th. Needham & Company LLC reaffirmed a “buy” rating on shares of Roku in a report on Friday, August 7th. Seaport Research Partners lowered Roku from a “buy” rating to a “neutral” rating in a research report on Friday, August 7th. Weiss Ratings upgraded Roku from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Finally, Fox Advisors set a $157.00 price target on Roku in a research note on Friday, July 17th.

Insider Buying and Selling at Roku

In related news, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $151.63, for a total value of $3,114,176.94. Following the completion of the sale, the insider directly owned 22,700 shares of the company’s stock, valued at $3,442,001. The trade was a 47.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $151.09, for a total value of $302,180.00. Following the sale, the director owned 9,629 shares of the company’s stock, valued at approximately $1,454,845.61. This represents a 17.20% 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. Insiders have sold a total of 112,285 shares of company stock valued at $17,154,985 over the last ninety days. Insiders own 13.45% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Moran Wealth Management LLC bought a new stake in Roku during the first quarter valued at approximately $2,990,000. Bank of New York Mellon Corp bought a new position in shares of Roku in the 2nd quarter worth $105,216,000. Contravisory Investment Management Inc. bought a new position in shares of Roku in the 2nd quarter worth $1,184,000. California Public Employees Retirement System increased its holdings in shares of Roku by 14.8% in the 1st quarter. California Public Employees Retirement System now owns 260,774 shares of the company’s stock worth $24,674,000 after buying an additional 33,593 shares during the last quarter. Finally, Lazard Asset Management LLC increased its holdings in shares of Roku by 31.6% in the 1st quarter. Lazard Asset Management LLC now owns 96,204 shares of the company’s stock worth $9,103,000 after buying an additional 23,092 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Shareholders approved Fox’s $22 billion acquisition of Roku, removing a major transaction hurdle and reinforcing expectations that the deal will proceed. The combination would give Fox direct access to Roku’s large household and advertising ecosystem. Shareholders Approve Fox’s $22 Billion Roku Acquisition
• Positive Sentiment: Bank of America upgraded Fox to Buy from Underperform and raised its price target to $85 from $54, arguing that the Roku transaction could improve Fox’s growth outlook and generate approximately $700 million in additional annual earnings by 2028. The endorsement supports the strategic rationale for Roku’s valuation and deal prospects. Fox upgraded to Buy at Bank of America as Roku deal boosts growth outlook
• Positive Sentiment: Analysts and market commentary continue to highlight Roku’s scale in U.S. streaming, advertising potential and improving earnings trends. Zacks also lists ROKU among non-tech Nasdaq stocks with strong growth trends and rising earnings estimates, supporting recent upward momentum. Buy 5 Top-Ranked Non-Tech Nasdaq Stocks to Maximize Q4 Gains
• Neutral Sentiment: Roku TV’s inclusion in discounted third-party products such as Aurzen’s mini projector increases consumer visibility for the platform, but the promotion is unlikely to materially affect Roku’s near-term financial results. Aurzen’s E1R Mini Projector Has Roku TV Built-In
• Negative Sentiment: The acquisition means Roku’s future will be tied to Fox rather than remaining an independent public company. Investors may therefore focus less on standalone Roku operating performance and more on deal completion, integration risks and the final value delivered to Roku shareholders.

Roku Stock Performance

Shares of NASDAQ ROKU opened at $154.54 on Friday. The firm has a 50 day moving average price of $154.78 and a two-hundred day moving average price of $137.22. The stock has a market cap of $22.94 billion, a P/E ratio of 66.04 and a beta of 2.05. Roku has a 52-week low of $78.53 and a 52-week high of $159.89.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the previous year, the business earned $0.07 earnings per share. Roku’s revenue was up 21.9% compared to the same quarter last year. Analysts predict that Roku will post 2.92 earnings per share for the current fiscal year.

Roku Company Profile

Roku, Inc develops and operates a television streaming platform that connects consumers with digital entertainment. Its platform enables users to access streaming services, live television, movies, music and other content through Roku devices and Roku-powered televisions.

The company offers Roku streaming players, Roku-branded televisions and the Roku operating system, which it licenses to television manufacturers. Roku also operates The Roku Channel, an ad-supported streaming service offering movies, television programs, news, live channels and other content.