Roku (NASDAQ:ROKU) Shares Up 0.4% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shares shot up 0.4% during mid-day trading on Monday . The company traded as high as $83.65 and last traded at $83.33. 536,810 shares changed hands during trading, a decline of 88% from the average session volume of 4,387,953 shares. The stock had previously closed at $82.99.

Wall Street Analyst Weigh In

ROKU has been the subject of a number of recent analyst reports. Wolfe Research raised Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price for the company in a report on Thursday, September 12th. Wells Fargo & Company upped their target price on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a report on Thursday, October 31st. UBS Group began coverage on shares of Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price target for the company. Moffett Nathanson raised shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 price target on the stock in a report on Tuesday, October 1st. Finally, Piper Sandler lifted their price objective on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Stock Up 0.5 %

The firm’s fifty day moving average price is $75.00 and its 200-day moving average price is $67.03. The stock has a market cap of $12.12 billion, a P/E ratio of -69.44 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company’s revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the firm earned ($2.33) EPS. Sell-side analysts predict that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Buying and Selling at Roku

In other news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total transaction of $76,250.00. Following the sale, the chief financial officer now owns 53,267 shares of the company’s stock, valued at approximately $4,061,608.75. The trade was a 1.84 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at approximately $2,193,100.32. The trade was a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 73,096 shares of company stock valued at $5,653,823 in the last 90 days. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Holocene Advisors LP bought a new stake in shares of Roku during the third quarter valued at approximately $129,015,000. Westfield Capital Management Co. LP lifted its position in Roku by 126.1% during the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after buying an additional 856,401 shares during the period. Point72 Asset Management L.P. boosted its holdings in shares of Roku by 352.5% during the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after buying an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP grew its position in shares of Roku by 470.2% in the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after buying an additional 445,777 shares during the period. Finally, FMR LLC increased its stake in shares of Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after acquiring an additional 244,793 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.