Roku (NASDAQ:ROKU) Shares Up 5.6% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU) traded up 5.6% on Tuesday . The stock traded as high as $80.70 and last traded at $80.11. 1,207,800 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 2,753,423 shares. The stock had previously closed at $75.89.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Piper Sandler increased their price objective on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. JPMorgan Chase & Co. raised their target price on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Needham & Company LLC restated a “buy” rating and issued a $100.00 target price on shares of Roku in a research note on Tuesday, January 7th. JMP Securities initiated coverage on Roku in a research note on Tuesday. They issued a “mkt outperform” rating and a $95.00 target price for the company. Finally, Wedbush restated an “outperform” rating and issued a $100.00 target price on shares of Roku in a research note on Wednesday, January 8th. Three equities research analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $83.18.

Roku Stock Performance

The company has a market capitalization of $12.16 billion, a P/E ratio of -69.82 and a beta of 2.05. The firm’s fifty day moving average is $76.87 and its 200 day moving average is $71.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.29. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The firm’s quarterly revenue was up 16.5% on a year-over-year basis. During the same period in the previous year, the company earned ($2.33) EPS. On average, analysts forecast that Roku, Inc. will post -1.09 EPS for the current year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction that occurred on Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the completion of the sale, the chief financial officer now owns 65,555 shares of the company’s stock, valued at $4,916,625. This represents a 1.50 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred 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 sale, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at $2,193,100.32. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 73,095 shares of company stock valued at $5,726,218. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently bought and sold shares of the company. Holocene Advisors LP acquired a new position in Roku during the 3rd quarter valued at approximately $129,015,000. Kessler Investment Group LLC increased its stake in Roku by 21.8% during the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after purchasing an additional 13,590 shares in the last quarter. National Bank of Canada FI increased its stake in Roku by 11,626.3% during the 3rd quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock valued at $11,259,000 after purchasing an additional 149,514 shares in the last quarter. EULAV Asset Management increased its stake in Roku by 59.1% during the 3rd quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock valued at $13,663,000 after purchasing an additional 68,000 shares in the last quarter. Finally, Granite Bay Wealth Management LLC acquired a new position in Roku during the 2nd quarter valued at approximately $1,142,000. 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.