Moffett Nathanson Upgrades Roku (NASDAQ:ROKU) to Neutral

Roku (NASDAQ:ROKU) was upgraded by investment analysts at Moffett Nathanson from a “sell” rating to a “neutral” rating in a research report issued on Tuesday, Briefing.com reports. The brokerage currently has a $80.00 price objective on the stock. Moffett Nathanson’s price objective points to a potential upside of 7.15% from the company’s current price.

ROKU has been the subject of several other reports. Macquarie reduced their price target on Roku from $88.00 to $72.00 and set an “outperform” rating for the company in a research report on Friday, August 2nd. Wolfe Research upgraded Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a research note on Thursday, September 12th. Bank of America boosted their price target on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research note on Monday. Needham & Company LLC restated a “buy” rating and issued a $100.00 target price on shares of Roku in a research note on Friday, September 13th. Finally, Wells Fargo & Company raised Roku from an “underweight” rating to an “equal weight” rating and upped their price target for the stock from $50.00 to $72.00 in a report on Thursday, September 5th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, Roku currently has a consensus rating of “Hold” and a consensus price target of $80.29.

Roku Price Performance

NASDAQ ROKU opened at $74.66 on Tuesday. The stock has a market capitalization of $10.76 billion, a PE ratio of -18.71 and a beta of 2.06. The business has a 50 day simple moving average of $64.43 and a two-hundred day simple moving average of $61.51. Roku has a 1-year low of $48.33 and a 1-year high of $108.84.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, August 1st. The company reported ($0.24) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.45) by $0.21. The company had revenue of $968.18 million during the quarter, compared to analysts’ expectations of $937.78 million. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. Roku’s revenue was up 14.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.76) EPS. On average, analysts anticipate that Roku will post -1.44 EPS for the current fiscal year.

Insider Activity

In related news, insider Charles Collier sold 3,590 shares of Roku stock in a transaction dated Tuesday, July 16th. The stock was sold at an average price of $65.00, for a total value of $233,350.00. Following the completion of the transaction, the insider now directly owns 12,064 shares in the company, valued at $784,160. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, insider Charles Collier sold 3,590 shares of Roku stock in a transaction that occurred on Tuesday, July 16th. The stock was sold at an average price of $65.00, for a total transaction of $233,350.00. Following the sale, the insider now owns 12,064 shares of the company’s stock, valued at $784,160. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $75.33, for a total value of $75,330.00. Following the sale, the chief financial officer now directly owns 54,267 shares in the company, valued at approximately $4,087,933.11. The disclosure for this sale can be found here. Insiders sold 46,945 shares of company stock worth $3,465,135 over the last ninety days. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Quarry LP lifted its stake in shares of Roku by 160.2% in the 4th quarter. Quarry LP now owns 432 shares of the company’s stock valued at $40,000 after purchasing an additional 266 shares during the last quarter. Benjamin Edwards Inc. increased its holdings in shares of Roku by 43.5% during the 1st quarter. Benjamin Edwards Inc. now owns 617 shares of the company’s stock worth $40,000 after purchasing an additional 187 shares during the period. EverSource Wealth Advisors LLC increased its holdings in shares of Roku by 123.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after purchasing an additional 375 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Roku by 835.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock worth $45,000 after purchasing an additional 610 shares during the period. Finally, Cedar Wealth Management LLC bought a new stake in Roku in the second quarter valued at about $48,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Company Profile

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.