Wedbush Reaffirms “Outperform” Rating for Roku (NASDAQ:ROKU)

Roku (NASDAQ:ROKU)‘s stock had its “outperform” rating restated by investment analysts at Wedbush in a note issued to investors on Wednesday,RTT News reports. They currently have a $100.00 price objective on the stock. Wedbush’s target price would indicate a potential upside of 20.48% from the company’s previous close. Wedbush also issued estimates for Roku’s FY2026 earnings at $0.22 EPS.

Several other brokerages also recently weighed in on ROKU. Piper Sandler boosted their price target on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. UBS Group initiated coverage on Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price for the company. Loop Capital increased their target price on Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a research report on Monday, December 9th. Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a report on Monday, November 18th. Finally, Morgan Stanley increased their price objective on shares of Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a report on Tuesday, October 29th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Stock Up 6.4 %

Shares of NASDAQ:ROKU opened at $83.00 on Wednesday. The company has a market capitalization of $12.05 billion, a P/E ratio of -69.17 and a beta of 2.05. Roku has a 52-week low of $48.33 and a 52-week high of $99.80. The stock’s fifty day simple moving average is $75.61 and its 200-day simple moving average is $69.80.

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

Insiders Place Their Bets

In related news, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the sale, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at $518,940.16. This represents a 54.48 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the transaction, the chief financial officer now directly owns 64,555 shares of the company’s stock, valued at approximately $5,340,635.15. This represents a 1.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 48,095 shares of company stock worth $3,731,038 in the last quarter. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Institutional investors and hedge funds have recently bought and sold shares of the company. Raelipskie Partnership bought a new position in Roku in the third quarter worth about $32,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Roku by 123.4% during the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after acquiring an additional 375 shares during the period. Future Financial Wealth Managment LLC acquired a new stake in shares of Roku in the 3rd quarter worth about $43,000. GS Investments Inc. grew its position in Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after purchasing an additional 147 shares during the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in shares of Roku during the second quarter valued at approximately $48,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.