Roku (NASDAQ:ROKU) Stock Price Up 10.6% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shares rose 10.6% during mid-day trading on Wednesday . The stock traded as high as $83.80 and last traded at $83.71. Approximately 4,586,138 shares changed hands during trading, an increase of 4% from the average daily volume of 4,410,844 shares. The stock had previously closed at $75.69.

Analyst Ratings Changes

ROKU has been the subject of several recent analyst reports. Morgan Stanley upped their price target on Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a research note on Tuesday, October 29th. Jefferies Financial Group decreased their target price on 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 increased their target price on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Wedbush restated an “outperform” rating and set a $100.00 target price (up previously from $85.00) on shares of Roku in a research note on Friday. 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 note on Thursday, September 12th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and a consensus target price of $83.33.

Roku Stock Performance

The firm has a market capitalization of $12.18 billion, a P/E ratio of -69.20 and a beta of 2.06. The stock has a 50-day moving average of $74.03 and a 200 day moving average of $65.83.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates 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 return on equity of 7.22% and a negative net margin of 4.42%. The business’s quarterly revenue was up 16.5% compared to the same quarter last year. During the same period last year, the company earned ($2.33) EPS. On average, equities analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insider Buying and Selling at Roku

In other news, CAO Matthew C. Banks sold 8,693 shares of the firm’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 transaction, the chief accounting officer now directly owns 7,264 shares in the company, valued at $518,940.16. This trade represents a 54.48 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction dated Thursday, October 10th. The stock was sold at an average price of $77.20, for a total value of $1,930,000.00. Following the sale, the chief executive officer now owns 5,020 shares in the company, valued at $387,544. The trade was a 83.28 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 88,550 shares of company stock worth $6,621,873. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of large investors have recently added to or reduced their stakes in the stock. Holocene Advisors LP bought a new stake in Roku during the third quarter worth $129,015,000. Westfield Capital Management Co. LP lifted its stake in Roku by 126.1% during the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares during the last quarter. Point72 Asset Management L.P. lifted its stake in Roku by 352.5% during the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after purchasing an additional 507,643 shares during the last quarter. JAT Capital Mgmt LP lifted its stake in Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after purchasing an additional 445,777 shares during the last quarter. Finally, FMR LLC lifted its stake in Roku by 1.7% during the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after purchasing an additional 244,793 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.