Guggenheim Upgrades Roku (NASDAQ:ROKU) to “Buy”

Roku (NASDAQ:ROKU) was upgraded by investment analysts at Guggenheim from a “neutral” rating to a “buy” rating in a research note issued on Friday, Marketbeat Ratings reports. The firm currently has a $75.00 target price on the stock. Guggenheim’s target price indicates a potential upside of 8.47% from the company’s current price.

Several other brokerages have also weighed in on ROKU. Bank of America dropped their target price on shares of Roku from $85.00 to $75.00 and set a “buy” rating for the company in a research report on Friday, August 2nd. Wells Fargo & Company upped their price objective on Roku from $45.00 to $52.00 and gave the company an “underweight” rating in a research note on Friday, April 26th. Wedbush reiterated an “outperform” rating and issued a $75.00 target price on shares of Roku in a research report on Friday, August 2nd. Seaport Res Ptn raised Roku from a “neutral” rating to a “buy” rating in a research report on Monday, April 29th. Finally, Susquehanna decreased their price objective on shares of Roku from $110.00 to $80.00 and set a “positive” rating for the company in a report on Monday, April 29th. Four equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have issued a buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $79.50.

Roku Price Performance

NASDAQ:ROKU opened at $69.15 on Friday. Roku has a 1-year low of $48.33 and a 1-year high of $108.84. The stock has a market cap of $10.00 billion, a P/E ratio of -17.33 and a beta of 1.96. The firm has a 50-day moving average of $58.74 and a two-hundred day moving average of $61.90.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.45) by $0.21. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The firm had revenue of $968.18 million during the quarter, compared to analyst estimates of $937.78 million. During the same quarter last year, the firm earned ($0.76) EPS. Roku’s quarterly revenue was up 14.3% on a year-over-year basis. As a group, equities analysts expect that Roku will post -1.45 earnings per share for the current year.

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 7,181 shares of the firm’s stock in a transaction on Tuesday, June 4th. The stock was sold at an average price of $57.03, for a total transaction of $409,532.43. Following the completion of the sale, the insider now directly owns 15,654 shares of the company’s stock, valued at approximately $892,747.62. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, SVP Stephen H. Kay sold 3,322 shares of the company’s stock in a transaction on Tuesday, June 4th. The stock was sold at an average price of $57.09, for a total transaction of $189,652.98. Following the transaction, the senior vice president now directly owns 82,036 shares of the company’s stock, valued at $4,683,435.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charles Collier sold 7,181 shares of the firm’s stock in a transaction dated Tuesday, June 4th. The stock was sold at an average price of $57.03, for a total value of $409,532.43. Following the sale, the insider now owns 15,654 shares of the company’s stock, valued at $892,747.62. The disclosure for this sale can be found here. In the last three months, insiders sold 27,075 shares of company stock valued at $1,556,005. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

A number of hedge funds have recently made changes to their positions in ROKU. Granite Bay Wealth Management LLC acquired a new position in Roku in the 2nd quarter valued at approximately $1,142,000. Quarry LP raised its position in shares of Roku by 127.9% in the second quarter. Quarry LP now owns 1,682 shares of the company’s stock valued at $101,000 after purchasing an additional 944 shares during the period. Algert Global LLC lifted its stake in shares of Roku by 144.4% in the second quarter. Algert Global LLC now owns 55,177 shares of the company’s stock worth $3,307,000 after buying an additional 32,603 shares during the last quarter. Empirical Capital Management LLC boosted its holdings in shares of Roku by 10.0% during the 2nd quarter. Empirical Capital Management LLC now owns 177,000 shares of the company’s stock worth $10,608,000 after buying an additional 16,031 shares during the period. Finally, Susquehanna Fundamental Investments LLC acquired a new position in Roku in the 2nd quarter valued at $3,437,000. 86.30% of the stock is 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.