Roku (NASDAQ:ROKU) Trading 1% Higher – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 1% during trading on Friday . The stock traded as high as $75.63 and last traded at $75.24. Approximately 452,325 shares were traded during mid-day trading, a decline of 61% from the average daily volume of 1,165,545 shares. The stock had previously closed at $74.49.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on ROKU shares. Jefferies Financial Group cut their price target on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a report on Friday, November 1st. Rosenblatt Securities upped their price objective on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. UBS Group started coverage on Roku in a research report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective for the company. JPMorgan Chase & Co. boosted their target price on shares of Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th. Finally, Benchmark restated a “buy” rating and issued 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 given a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, Roku has a consensus rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Price Performance

The firm has a market cap of $11.01 billion, a price-to-earnings ratio of -63.17 and a beta of 2.06. The business’s 50-day moving average price is $75.35 and its two-hundred day moving average price is $68.96.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.35) by $0.29. The business 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% on a year-over-year basis. During the same period last year, the company posted ($2.33) EPS. As a group, sell-side analysts forecast that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the completion of the transaction, the chief financial officer now directly owns 64,555 shares of the company’s stock, valued at approximately $5,340,635.15. This trade represents a 1.53 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 10,771 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.14, for a total transaction of $766,248.94. Following the completion of the sale, the insider now directly owns 3,790 shares of the company’s stock, valued at $269,620.60. The trade was a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 72,885 shares of company stock worth $5,645,259 in the last ninety days. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

A number of large investors have recently added to or reduced their stakes in the business. Holocene Advisors LP acquired a new position in shares of Roku in the 3rd quarter valued at $129,015,000. Westfield Capital Management Co. LP increased its position in shares of Roku by 126.1% in the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after acquiring an additional 856,401 shares in the last quarter. Point72 Asset Management L.P. increased its position in shares of Roku by 352.5% in the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after acquiring an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP raised its holdings in shares of Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after acquiring an additional 445,777 shares during the period. Finally, FMR LLC boosted its stake in Roku by 1.7% in the 3rd 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 period. 86.30% of the stock is currently owned by institutional investors.

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.