Roku (NASDAQ:ROKU) Raised to Outperform at Royal Bank of Canada

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Roku (NASDAQ:ROKU) was upgraded by analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a research report issued to clients and investors on Friday, October 19th, Marketbeat reports. The brokerage currently has a $70.00 price target on the stock, up from their prior price target of $48.00. Royal Bank of Canada’s price objective would suggest a potential upside of 59.31% from the stock’s current price.

Several other equities analysts also recently weighed in on ROKU. BidaskClub downgraded shares of Roku from a “buy” rating to a “hold” rating in a report on Tuesday, June 26th. UBS Group raised shares of Roku from a “market perform” rating to an “outperform” rating in a report on Tuesday, July 3rd. Oppenheimer upgraded shares of Roku from a “market perform” rating to an “outperform” rating and set a $50.00 price objective on the stock in a research report on Tuesday, July 3rd. Zacks Investment Research cut shares of Roku from a “buy” rating to a “hold” rating in a research report on Wednesday, July 11th. Finally, KeyCorp boosted their price target on shares of Roku from $44.00 to $54.00 and gave the stock an “overweight” rating in a research report on Tuesday, July 17th. Four analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company. Roku presently has an average rating of “Buy” and a consensus price target of $65.61.

Shares of ROKU traded down $1.80 on Friday, reaching $43.94. The company’s stock had a trading volume of 14,365,021 shares, compared to its average volume of 8,045,739. Roku has a 12-month low of $29.00 and a 12-month high of $77.57. The company has a market cap of $6.24 billion, a price-to-earnings ratio of -19.62 and a beta of 3.59.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, November 7th. The company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.03. Roku had a negative net margin of 1.33% and a negative return on equity of 4.68%. The business had revenue of $173.40 million for the quarter, compared to the consensus estimate of $170.73 million. During the same quarter in the previous year, the firm earned ($0.10) earnings per share. The company’s revenue for the quarter was up 38.9% on a year-over-year basis. As a group, research analysts predict that Roku will post -0.14 EPS for the current fiscal year.

In related news, CEO Anthony J. Wood sold 370,486 shares of the business’s stock in a transaction on Tuesday, August 14th. The shares were sold at an average price of $57.10, for a total value of $21,154,750.60. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Anthony J. Wood sold 421,549 shares of the business’s stock in a transaction on Wednesday, September 19th. The stock was sold at an average price of $70.89, for a total transaction of $29,883,608.61. The disclosure for this sale can be found here. Insiders sold 1,206,975 shares of company stock worth $76,984,919 in the last 90 days. 0.55% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Stratos Wealth Partners LTD. purchased a new position in Roku during the third quarter worth $130,000. BNP Paribas Arbitrage SA purchased a new position in Roku during the first quarter worth $156,000. SevenBridge Financial Group LLC purchased a new position in Roku during the second quarter worth $158,000. Harel Insurance Investments & Financial Services Ltd. purchased a new position in Roku during the third quarter worth $168,000. Finally, Rikoon Group LLC purchased a new position in Roku during the first quarter worth $202,000. 33.34% of the stock is owned by institutional investors.

About Roku

Roku, Inc operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts.

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Analyst Recommendations for Roku (NASDAQ:ROKU)

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