Roku (NASDAQ:ROKU) Shares Up 5% – Time to Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 5% on Wednesday . The stock traded as high as $83.45 and last traded at $81.87. 1,767,172 shares changed hands during trading, a decline of 28% from the average session volume of 2,440,119 shares. The stock had previously closed at $77.99.

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Bank of America increased their target price on shares of Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. UBS Group initiated coverage on shares of Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective for the company. Citigroup increased their target price on Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Jefferies Financial Group reduced their price target 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, Macquarie reiterated an “outperform” rating and set a $90.00 price objective on shares of Roku in a research note on Thursday, October 31st. Three research analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, Roku presently has an average rating of “Hold” and a consensus price target of $82.62.

Roku Stock Performance

The stock has a market cap of $11.50 billion, a PE ratio of -65.99 and a beta of 2.05. The firm has a 50-day moving average price of $75.99 and a 200-day moving average price of $69.89.

Roku (NASDAQ:ROKU) last issued its earnings results 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. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the previous year, the company earned ($2.33) earnings per share. The business’s revenue for the quarter was up 16.5% compared to the same quarter last year. As a group, sell-side analysts anticipate that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the completion of the sale, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,193,100.32. The trade was a 48.51 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Monday, December 16th. The shares were sold at an average price of $82.73, for a total value of $82,730.00. Following the transaction, the chief financial officer now directly owns 64,555 shares in the company, valued at $5,340,635.15. The trade was a 1.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 48,095 shares of company stock valued at $3,731,038. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

A number of hedge funds have recently bought and sold shares of the company. Raelipskie Partnership purchased a new stake in Roku in the third quarter worth about $32,000. EverSource Wealth Advisors LLC increased its holdings in Roku by 123.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after acquiring an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC bought a new stake in Roku during the 3rd quarter worth approximately $43,000. GS Investments Inc. lifted its holdings in 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 purchasing an additional 147 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new position in shares of Roku in the second quarter worth approximately $48,000. 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.