Roku (NASDAQ:ROKU) Shares Up 5.6% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 5.6% on Tuesday . The stock traded as high as $80.70 and last traded at $80.11. Approximately 1,207,800 shares changed hands during trading, a decline of 56% from the average daily volume of 2,753,423 shares. The stock had previously closed at $75.89.

Analyst Ratings Changes

ROKU has been the topic of a number of recent analyst reports. Wells Fargo & Company increased their price target 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 assumed coverage on Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price target for the company. Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Jefferies Financial Group cut their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research report on Friday, November 1st. Finally, Moffett Nathanson cut shares of Roku from a “neutral” rating to a “sell” rating and set a $55.00 price target on the stock. in a research note on Friday, January 10th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $83.18.

Roku Price Performance

The company has a market capitalization of $11.64 billion, a PE ratio of -66.87 and a beta of 2.05. The business’s 50 day simple moving average is $76.72 and its 200 day simple moving average is $70.88.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.29. The firm 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 business’s revenue for the quarter was up 16.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($2.33) EPS. As a group, analysts anticipate that Roku, Inc. will post -1.09 EPS for the current year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total value of $77,180.00. Following the transaction, the chief financial officer now owns 63,555 shares of the company’s stock, valued at $4,905,174.90. This represents a 1.55 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total value of $2,066,000.00. Following the sale, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at $2,193,100.32. This trade represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 73,095 shares of company stock worth $5,726,218. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. American Century Companies Inc. boosted its holdings in shares of Roku by 3.5% in the 2nd quarter. American Century Companies Inc. now owns 25,847 shares of the company’s stock valued at $1,549,000 after buying an additional 877 shares in the last quarter. Federated Hermes Inc. boosted its stake in Roku by 32.6% in the second quarter. Federated Hermes Inc. now owns 1,695 shares of the company’s stock valued at $102,000 after acquiring an additional 417 shares in the last quarter. Envestnet Asset Management Inc. grew its holdings in shares of Roku by 20.7% during the second quarter. Envestnet Asset Management Inc. now owns 110,616 shares of the company’s stock worth $6,629,000 after purchasing an additional 19,002 shares during the last quarter. Vanguard Personalized Indexing Management LLC increased its position in shares of Roku by 6.6% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 11,271 shares of the company’s stock worth $675,000 after purchasing an additional 698 shares in the last quarter. Finally, Blair William & Co. IL lifted its holdings in shares of Roku by 25.6% in the 2nd quarter. Blair William & Co. IL now owns 43,736 shares of the company’s stock valued at $2,621,000 after purchasing an additional 8,922 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

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.