Roku Receives Outperform Rating from Wedbush

On Wednesday, equity analysts from Wedbush maintained an "outperform" rating for Roku, Inc. (NASDAQ:ROKU) in their latest research report. They have set a price target of $100.00 for the stock, suggesting a potential upside of approximately 20.48% from its current trading price.

Roku has attracted attention from various research firms recently. Bank of America increased its price objective from $75.00 to $90.00 and classified the stock as a "buy" in a report dated September 30. In a separate research report on September 12, Benchmark reaffirmed their "buy" rating and set a target price of $105.00 for Roku shares. Meanwhile, Piper Sandler revised their price target up from $60.00 to $75.00 with a neutral rating, and UBS Group recently initiated coverage with a $73.00 target at a neutral stance. Wells Fargo also adjusted their price objective from $72.00 to $74.00, giving Roku an "equal weight" rating. Currently, two analysts have rated the stock as a sell, nine have given it a hold rating, twelve have assigned a buy rating, and one has designated it as a strong buy. According to MarketBeat, Roku has a consensus rating of "Moderate Buy" with an average target price of $83.81.

Roku Stock Performance

On Wednesday, Roku's stock rose by 6.4%, reaching a midday price of $83.00. During this time, the trading volume was about 5,495,623 shares, significantly higher than the average volume of 3,238,221 shares. Roku holds a market capitalization of $12.05 billion and has a price-to-earnings ratio of -69.17. Over the past year, the stock has seen a low of $48.33 and a high of $99.80. Analysts note that Roku's 50-day moving average is $75.50, while the 200-day average stands at $69.71.

On October 30, Roku reported its quarterly earnings, disclosing a loss of ($0.06) earnings per share, which beat the consensus estimate of ($0.35) by $0.29. The company generated revenues of $1.06 billion, surpassing the expected $1.02 billion. Year-over-year, Roku's revenue grew by 16.5%. Analysts predict that Roku will post an EPS of -1.1 for the current year.

Insider Transactions at Roku

In recent insider activity, CFO Dan Jedda sold 1,000 shares of Roku at an average price of $82.73, amounting to a total of $82,730. Following this sale, Jedda retains 64,555 shares, valued at about $5.34 million. Another insider, Charles Collier, also sold 10,771 shares at roughly $71.14, totaling around $766,248.94, and now owns 3,790 shares worth approximately $269,620. This recent activity reflects a 1.53% and 73.97% decrease in their holdings, respectively. In the last ninety days, insiders have sold 73,095 shares for about $5.66 million, with 13.98% of the stock currently owned by insiders.

Institutional Holdings in Roku

Institutional investors have recently adjusted their positions in Roku. Holocene Advisors LP made a substantial entry, acquiring a new stake valued at about $129 million in the third quarter. Kessler Investment Group LLC increased its stake by 21.8%, now owning 75,968 shares worth $5.67 million. Additionally, National Bank of Canada FI dramatically raised its stake by 11,626.3%, holding 150,800 shares worth about $11.26 million after purchasing 149,514 shares. EULAV Asset Management also increased its holdings by 59.1%, owning a total of 183,000 shares valued at $13.66 million. In total, institutional and hedge fund investments account for 86.30% of Roku's stock.Roku, Wedbush, Rating