Roku (NASDAQ:ROKU) Trading 2.1% Higher – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) was up 2.1% on Thursday . The company traded as high as $68.29 and last traded at $67.71. Approximately 2,894,370 shares traded hands during trading, a decline of 34% from the average daily volume of 4,410,360 shares. The stock had previously closed at $66.31.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ROKU. Jefferies Financial Group dropped their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Piper Sandler raised their price objective on shares of Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Guggenheim raised shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a research note on Friday, August 23rd. Macquarie restated an “outperform” rating and issued a $90.00 target price on shares of Roku in a research note on Thursday, October 31st. Finally, Wolfe Research upgraded Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price for the company in a research report on Thursday, September 12th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $82.62.

Roku Stock Performance

The company has a market capitalization of $9.83 billion, a PE ratio of -56.42 and a beta of 2.07. The stock has a fifty day moving average of $73.97 and a 200 day moving average of $65.26.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the previous year, the business posted ($2.33) earnings per share. The business’s revenue was up 16.5% compared to the same quarter last year. As a group, equities analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insiders Place Their Bets

In other Roku news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Tuesday, September 17th. The shares were sold at an average price of $75.33, for a total transaction of $75,330.00. Following the completion of the transaction, the chief financial officer now directly owns 54,267 shares in the company, valued at approximately $4,087,933.11. This represents a 1.81 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Gilbert Fuchsberg sold 1,693 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total transaction of $109,012.27. Following the completion of the transaction, the insider now directly owns 38,602 shares in the company, valued at $2,485,582.78. This represents a 4.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 90,240 shares of company stock worth $6,729,582. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently made changes to their positions in the company. Swedbank AB acquired a new position in Roku in the 1st quarter valued at $1,180,000. SG Americas Securities LLC lifted its stake in shares of Roku by 238.6% in the second quarter. SG Americas Securities LLC now owns 73,528 shares of the company’s stock worth $4,407,000 after buying an additional 51,815 shares in the last quarter. Kessler Investment Group LLC boosted its position in Roku by 21.8% during the third quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock worth $5,672,000 after acquiring an additional 13,590 shares during the last quarter. Cetera Investment Advisers grew its stake in Roku by 240.3% during the 1st quarter. Cetera Investment Advisers now owns 41,805 shares of the company’s stock valued at $2,724,000 after acquiring an additional 29,521 shares in the last quarter. Finally, Granite Bay Wealth Management LLC acquired a new stake in Roku in the 2nd quarter valued at about $1,142,000. Institutional investors and hedge funds 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.