Roku (NASDAQ:ROKU) Upgraded to Outperform at Robert W. Baird

Robert W. Baird upgraded shares of Roku (NASDAQ:ROKU) from a neutral rating to an outperform rating in a research note issued to investors on Monday morning, MarketBeat Ratings reports. The brokerage currently has $90.00 price objective on the stock, up from their prior price objective of $70.00.

Several other brokerages have also recently commented on ROKU. Loop Capital raised their target price on shares of Roku from $65.00 to $70.00 and gave the stock a “hold” rating in a report on Thursday, October 31st. Jefferies Financial Group decreased their price objective on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Morgan Stanley boosted their target price on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Rosenblatt Securities raised their target price on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Finally, JPMorgan Chase & Co. lifted their price target on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a report on Thursday, October 10th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $84.67.

Roku Stock Performance

Roku stock opened at $68.93 on Monday. The firm has a market cap of $10.01 billion, a price-to-earnings ratio of -57.45 and a beta of 2.07. Roku has a 1 year low of $48.33 and a 1 year high of $108.84. The firm’s 50 day moving average price is $74.66 and its two-hundred day moving average price is $64.97.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the previous year, the firm posted ($2.33) EPS. The company’s quarterly revenue was up 16.5% on a year-over-year basis. As a group, equities analysts predict that Roku will post -1.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the completion of the sale, the chief executive officer now owns 5,020 shares of the company’s stock, valued at $387,544. This represents a 83.28 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total transaction of $109,012.27. Following the completion of the transaction, the insider now directly owns 38,602 shares in the company, valued at approximately $2,485,582.78. This represents a 4.20 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 90,240 shares of company stock valued at $6,729,582 over the last three months. 13.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently made changes to their positions in ROKU. Raelipskie Partnership acquired a new position in shares of Roku during the 3rd quarter worth about $32,000. Future Financial Wealth Managment LLC bought a new position in Roku in the 3rd quarter worth approximately $43,000. GS Investments Inc. lifted its holdings in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Roku by 123.4% in 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. Finally, Cedar Wealth Management LLC acquired a new stake in shares of Roku in the second quarter worth $48,000. 86.30% of the stock is owned by institutional investors and hedge funds.

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.