Roku, Inc. (NASDAQ:ROKU) Expected to Post Q1 2023 Earnings of ($1.59) Per Share

Roku, Inc. (NASDAQ:ROKU - Get Rating) - Analysts at William Blair lowered their Q1 2023 earnings per share estimates for Roku in a note issued to investors on Wednesday, January 4th. William Blair analyst R. Schackart now forecasts that the company will post earnings per share of ($1.59) for the quarter, down from their previous forecast of ($1.55). The consensus estimate for Roku's current full-year earnings is ($3.66) per share. William Blair also issued estimates for Roku's Q2 2023 earnings at ($1.46) EPS, Q3 2023 earnings at ($1.33) EPS, Q4 2023 earnings at ($1.37) EPS and FY2023 earnings at ($5.74) EPS.

Other equities research analysts also recently issued research reports about the company. Pivotal Research reduced their target price on Roku from $60.00 to $40.00 and set a "sell" rating for the company in a report on Thursday, November 3rd. Jefferies Financial Group began coverage on Roku in a research note on Friday, November 11th. They set a "hold" rating and a $45.00 price target for the company. Citigroup cut their price target on Roku from $125.00 to $80.00 in a research note on Friday, November 4th. Oppenheimer lifted their price target on Roku from $58.00 to $70.00 in a research note on Friday, November 18th. Finally, DA Davidson cut their price target on Roku from $130.00 to $80.00 in a research note on Thursday, November 3rd. Five investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have issued a buy rating to the company. According to MarketBeat, Roku has a consensus rating of "Hold" and an average target price of $89.56.

Roku Stock Performance

Roku stock opened at $42.76 on Friday. Roku has a one year low of $38.26 and a one year high of $203.58. The business has a fifty day moving average of $50.61 and a two-hundred day moving average of $65.19. The company has a market cap of $5.96 billion, a P/E ratio of -24.86 and a beta of 1.61.

Roku (NASDAQ:ROKU - Get Rating) last released its earnings results on Wednesday, November 2nd. The company reported ($0.88) EPS for the quarter, beating analysts' consensus estimates of ($1.37) by $0.49. Roku had a negative return on equity of 8.50% and a negative net margin of 7.59%. The company had revenue of $761.37 million during the quarter, compared to the consensus estimate of $698.93 million.

Insider Activity

In other news, SVP Stephen H. Kay sold 1,469 shares of Roku stock in a transaction dated Wednesday, November 16th. The stock was sold at an average price of $56.46, for a total value of $82,939.74. Following the transaction, the senior vice president now directly owns 81,290 shares of the company's stock, valued at approximately $4,589,633.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, SVP Gilbert Fuchsberg sold 2,040 shares of Roku stock in a transaction dated Thursday, December 1st. The stock was sold at an average price of $59.16, for a total value of $120,686.40. Following the transaction, the senior vice president now directly owns 32,645 shares of the company's stock, valued at approximately $1,931,278.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Stephen H. Kay sold 1,469 shares of Roku stock in a transaction dated Wednesday, November 16th. The shares were sold at an average price of $56.46, for a total value of $82,939.74. Following the completion of the transaction, the senior vice president now directly owns 81,290 shares in the company, valued at $4,589,633.40. The disclosure for this sale can be found here. Insiders have sold 10,519 shares of company stock valued at $599,411 in the last three months. Corporate insiders own 13.79% of the company's stock.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Roku by 1.9% during the 3rd quarter. Vanguard Group Inc. now owns 10,897,100 shares of the company's stock worth $614,596,000 after acquiring an additional 206,357 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its position in Roku by 23.5% during the 3rd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,403,422 shares of the company's stock worth $417,553,000 after acquiring an additional 1,408,323 shares in the last quarter. BlackRock Inc. lifted its position in Roku by 5.1% during the 3rd quarter. BlackRock Inc. now owns 6,749,951 shares of the company's stock worth $380,697,000 after acquiring an additional 330,258 shares in the last quarter. Nikko Asset Management Americas Inc. raised its position in shares of Roku by 31.1% in the 2nd quarter. Nikko Asset Management Americas Inc. now owns 5,664,840 shares of the company's stock valued at $462,251,000 after purchasing an additional 1,344,218 shares in the last quarter. Finally, Wellington Management Group LLP raised its position in shares of Roku by 97.2% in the 1st quarter. Wellington Management Group LLP now owns 4,174,003 shares of the company's stock valued at $522,878,000 after purchasing an additional 2,057,633 shares in the last quarter. 66.11% of the stock is owned by institutional investors and hedge funds.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live TV, news sports, shows, and others. As of December 31, 2021, the company had 60.1 million active accounts.

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