Roku (ROKU) Given New $50.00 Price Target at Morgan Stanley

Roku (NASDAQ:ROKU) had its price target increased by Morgan Stanley from $45.00 to $50.00 in a report issued on Monday morning. The brokerage currently has an equal weight rating on the stock.

Other analysts also recently issued reports about the stock. Cannonball Research boosted their target price on shares of Roku from $68.00 to $97.00 and gave the stock a buy rating in a report on Monday, October 1st. Our analysis of the composition of advertising revenue growth gives us incremental comfort with our revenue forecast for FY18-20. It also supports our Buy thesis based on the belief that ROKU works only if the advertising revenue story works. We think that inventory sell through which has been a relatively small revenue driver so far can become more significant in the mid-term. Royal Bank of Canada reiterated a hold rating and issued a $48.00 target price on shares of Roku in a report on Thursday, August 9th. Zacks Investment Research downgraded shares of Roku from a buy rating to a hold rating in a report on Tuesday, July 31st. Citigroup boosted their target price on shares of Roku from $40.00 to $50.00 and gave the stock a neutral rating in a report on Thursday, August 9th. Finally, BidaskClub downgraded shares of Roku from a buy rating to a hold rating in a report on Friday, October 19th. Four research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. Roku currently has a consensus rating of Buy and a consensus target price of $65.61.

Shares of NASDAQ ROKU traded down $10.80 during midday trading on Monday, reaching $48.06. The company’s stock had a trading volume of 18,835,269 shares, compared to its average volume of 8,133,614. Roku has a one year low of $18.56 and a one year high of $77.57. The company has a market capitalization of $5.90 billion, a P/E ratio of -21.46 and a beta of 3.59.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, November 7th. The company reported ($0.09) EPS for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.03. Roku had a negative net margin of 7.49% and a negative return on equity of 60.24%. The business had revenue of $173.40 million for the quarter, compared to the consensus estimate of $170.73 million. During the same period in the previous year, the firm earned ($0.10) EPS. The business’s revenue for the quarter was up 38.9% on a year-over-year basis. As a group, analysts forecast that Roku will post -0.14 EPS for the current year.

In other news, VP Chas Smith sold 130,908 shares of the business’s stock in a transaction that occurred on Friday, August 10th. The shares were sold at an average price of $58.09, for a total transaction of $7,604,445.72. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Stephen H. Kay sold 36,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 4th. The shares were sold at an average price of $60.89, for a total transaction of $2,192,040.00. The disclosure for this sale can be found here. Insiders have sold 1,363,883 shares of company stock worth $86,102,564 in the last 90 days. 0.55% of the stock is owned by company insiders.

Hedge funds have recently added to or reduced their stakes in the company. Cynosure Advisors LLC acquired a new stake in shares of Roku during the second quarter valued at approximately $217,000. EastBay Asset Management LLC acquired a new stake in shares of Roku during the second quarter valued at approximately $25,971,000. Point72 Asset Management L.P. raised its holdings in shares of Roku by 35.8% during the second quarter. Point72 Asset Management L.P. now owns 1,822,057 shares of the company’s stock valued at $77,656,000 after acquiring an additional 480,762 shares during the period. Blackhawk Capital Partners LLC. acquired a new stake in shares of Roku during the second quarter valued at approximately $1,236,000. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in shares of Roku during the second quarter valued at approximately $542,000. Institutional investors and hedge funds own 33.34% of the company’s stock.

Roku Company Profile

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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