Roku’s stock has garnered renewed optimism from analysts, with several firms reaffirming their positive ratings following the company’s recent earnings report. JMP Securities reiterated its “market outperform” rating on the shares, setting a price target of $110.00. This comes as a strong endorsement in a market where Roku has faced challenges.
On August 1, 2023, multiple equity research analysts updated their assessments of Roku (NASDAQ: ROKU). Rosenblatt Securities raised its price objective from $75.00 to $101.00, indicating a “neutral” outlook. Pivotal Research made a more aggressive move, increasing its target from $100.00 to $120.00 and assigning a “buy” rating. Similarly, UBS Group also boosted its target from $72.00 to $95.00, maintaining a “neutral” stance.
Loop Capital shifted its perspective by upgrading Roku from a “hold” rating to a “buy” rating, increasing its price target from $80.00 to $100.00. In contrast, Evercore ISI reduced its price target from $105.00 to $80.00, placing an “in-line” rating on the stock.
As of now, analyst sentiment remains generally positive, with two analysts issuing a “strong buy” rating, eighteen giving a “buy” rating, seven assigning a “hold,” and one providing a “sell” rating. According to data from MarketBeat.com, Roku currently holds a consensus rating of “moderate buy” with an average target price of $98.96.
Roku’s Financial Performance and Market Position
On July 31, 2023, Roku reported its quarterly earnings, revealing earnings per share (EPS) of $0.07, exceeding the consensus estimate of ($0.16) by a substantial $0.23. The company generated revenue of $1.11 billion for the quarter, surpassing analysts’ expectations of $1.07 billion. This marked a year-over-year revenue increase of 14.7%.
Despite these positive metrics, Roku has also reported a negative net margin of 1.40% and a return on equity of -2.44%. The stock opened at $93.99 on the day of the report and has a market capitalization of $13.85 billion. Over the past year, Roku’s stock has fluctuated significantly, with a low of $52.43 and a high of $104.96.
Insider Trading Activity
Recent insider trading activity has also attracted attention. On August 22, 2023, Charles Collier, a company insider, sold 10,269 shares at an average price of $95.00, totaling approximately $975,555.00. This sale reduced his ownership in Roku by 98.09%.
Additionally, CEO Anthony J. Wood sold 25,000 shares on August 11, 2023, at an average price of $82.42, amounting to a total of $2,060,500.00. Following this transaction, he retained 16,441 shares valued at around $1,355,067.22, which reflects a 60.33% decrease in his ownership.
In the past ninety days, insiders have sold a total of 350,502 shares worth $31,665,946. Currently, corporate insiders own 13.98% of Roku’s stock.
As investment analysts and insiders navigate the evolving landscape, Roku’s stock continues to attract attention amid its recent performance and strategic movements within the market.
