Roku (NASDAQ:ROKU) Trading Up 2.6% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price was up 2.6% during trading on Friday . The company traded as high as $80.45 and last traded at $80.43. Approximately 681,575 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 4,360,282 shares. The stock had previously closed at $78.43.

Analyst Upgrades and Downgrades

ROKU has been the subject of a number of research reports. Needham & Company LLC reissued a “buy” rating and set a $100.00 price target on shares of Roku in a research note on Wednesday, December 4th. UBS Group initiated coverage on shares of Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price for the company. Macquarie reaffirmed an “outperform” rating and set a $90.00 price target on shares of Roku in a research note on Thursday, October 31st. Piper Sandler lifted their price objective 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, Benchmark restated a “buy” rating and set a $105.00 target price on shares of Roku in a research report on Thursday, September 12th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $83.81.

Roku Stock Performance

The company has a market cap of $11.70 billion, a P/E ratio of -67.16 and a beta of 2.06. The business’s fifty day moving average is $75.32 and its two-hundred day moving average is $67.78.

Roku (NASDAQ:ROKU) last posted 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. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the prior year, the company earned ($2.33) EPS. The business’s revenue was up 16.5% compared to the same quarter last year. Analysts expect that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Activity

In other news, insider Charles Collier sold 10,771 shares of Roku stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the transaction, the insider now directly owns 3,790 shares in the company, valued at approximately $269,620.60. This trade represents a 73.97 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the sale, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 73,096 shares of company stock worth $5,661,223. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ROKU. Raelipskie Partnership acquired a new stake in Roku in the third quarter worth about $32,000. Future Financial Wealth Managment LLC acquired a new stake in Roku in the 3rd quarter worth approximately $43,000. GS Investments Inc. grew its position in Roku by 33.4% during the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after purchasing an additional 147 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Roku by 123.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after purchasing an additional 375 shares in the last quarter. Finally, Cedar Wealth Management LLC purchased a new position in shares of Roku in the second quarter worth $48,000. 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.