Bank of America Begins Coverage on Roku (NASDAQ:ROKU)

Bank of America assumed coverage on shares of Roku (NASDAQ:ROKU - Free Report) in a research note issued to investors on Thursday. The firm issued a buy rating and a $100.00 target price on the stock.

Several other equities analysts have also issued reports on the company. Rosenblatt Securities reaffirmed a "neutral" rating and set a $86.00 price objective on shares of Roku in a report on Thursday, February 13th. Jefferies Financial Group upgraded Roku from an "underperform" rating to a "hold" rating and upped their price target for the stock from $55.00 to $100.00 in a research note on Thursday, February 20th. Pivotal Research upgraded shares of Roku from a "hold" rating to a "buy" rating and lifted their price objective for the company from $65.00 to $125.00 in a research report on Friday, February 14th. Wedbush restated an "outperform" rating and set a $100.00 price objective on shares of Roku in a research report on Monday, February 10th. Finally, Benchmark lifted their target price on shares of Roku from $100.00 to $130.00 and gave the company a "buy" rating in a report on Friday, February 14th. One analyst has rated the stock with a sell rating, five have given a hold rating, seventeen have issued a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat, Roku presently has an average rating of "Moderate Buy" and an average target price of $96.55.

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Roku Price Performance

Shares of Roku stock traded down $3.56 during trading on Thursday, hitting $72.49. 3,047,296 shares of the stock were exchanged, compared to its average volume of 3,712,395. The stock has a market cap of $10.58 billion, a price-to-earnings ratio of -81.45 and a beta of 2.12. The firm's 50-day moving average price is $81.10 and its 200 day moving average price is $77.67. Roku has a 12-month low of $48.33 and a 12-month high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping the consensus estimate of ($0.44) by $0.20. The business had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. As a group, research analysts forecast that Roku will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the firm's stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the transaction, the chief financial officer now owns 63,555 shares of the company's stock, valued at approximately $4,905,174.90. This trade represents a 1.55 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of the business's stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total transaction of $153,166.16. Following the completion of the transaction, the chief accounting officer now owns 7,256 shares in the company, valued at approximately $583,092.16. The trade was a 20.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 97,908 shares of company stock worth $8,633,436 over the last quarter. Company insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. FMR LLC increased its holdings in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company's stock worth $1,426,134,000 after purchasing an additional 4,613,570 shares during the period. Vanguard Group Inc. grew its stake in shares of Roku by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company's stock worth $910,597,000 after buying an additional 185,676 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of Roku by 663.9% during the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock valued at $173,644,000 after acquiring an additional 2,030,036 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its stake in Roku by 10.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company's stock worth $168,734,000 after purchasing an additional 215,841 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in Roku by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock valued at $159,353,000 after purchasing an additional 56,820 shares during the last quarter. 86.30% of the stock is currently 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.