Roku (NASDAQ:ROKU) Trading Up 1% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) was up 1% during trading on Wednesday . The company traded as high as $79.75 and last traded at $79.56. Approximately 768,296 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 4,350,347 shares. The stock had previously closed at $78.80.

Wall Street Analysts Forecast Growth

ROKU has been the subject of several recent analyst reports. JPMorgan Chase & Co. upped their price target on Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th. Wedbush restated an “outperform” rating and set a $100.00 target price (up previously from $85.00) on shares of Roku in a research report on Friday, December 6th. Wolfe Research upgraded shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a report on Thursday, September 12th. Piper Sandler boosted their price target on shares of Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Finally, Robert W. Baird upgraded Roku from a “neutral” rating to an “outperform” rating and raised their price objective for the company from $70.00 to $90.00 in a research report on Monday, November 18th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Stock Performance

The stock has a market cap of $11.54 billion, a P/E ratio of -66.23 and a beta of 2.06. The company’s fifty day moving average price is $75.43 and its 200-day moving average price is $68.23.

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

Insider Buying and Selling at Roku

In other Roku news, CAO Matthew C. Banks sold 8,693 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the completion of the sale, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at $518,940.16. The trade was a 54.48 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charles Collier sold 10,771 shares of the company’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.14, for a total transaction of $766,248.94. Following the completion of the transaction, the insider now owns 3,790 shares in the company, valued at $269,620.60. This represents a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 73,096 shares of company stock valued at $5,661,223 in the last quarter. 13.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently bought and sold shares of the company. GS Investments Inc. increased its stake in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after buying an additional 147 shares during the period. PFG Investments LLC increased its position in Roku by 3.7% during the 3rd quarter. PFG Investments LLC now owns 4,157 shares of the company’s stock valued at $310,000 after purchasing an additional 150 shares during the period. True Vision MN LLC raised its holdings in shares of Roku by 3.1% in the 3rd quarter. True Vision MN LLC now owns 5,018 shares of the company’s stock valued at $375,000 after purchasing an additional 152 shares in the last quarter. Sequoia Financial Advisors LLC lifted its position in shares of Roku by 4.5% in the 3rd quarter. Sequoia Financial Advisors LLC now owns 4,721 shares of the company’s stock worth $352,000 after purchasing an additional 202 shares during the period. Finally, Allspring Global Investments Holdings LLC boosted its stake in shares of Roku by 11.2% during the third quarter. Allspring Global Investments Holdings LLC now owns 2,207 shares of the company’s stock valued at $165,000 after purchasing an additional 222 shares in the last quarter. 86.30% of the stock is owned by institutional investors.

About Roku

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.