Roku (NASDAQ:ROKU) Trading Up 2.3% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 2.3% during trading on Wednesday . The stock traded as high as $82.79 and last traded at $82.30. 911,005 shares were traded during mid-day trading, a decline of 75% from the average session volume of 3,611,682 shares. The stock had previously closed at $80.41.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on ROKU shares. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 target price on shares of Roku in a research report on Tuesday, January 7th. Pivotal Research upgraded shares of Roku from a “hold” rating to a “buy” rating and lifted their price objective for the company from $65.00 to $125.00 in a research note on Friday, February 14th. Rosenblatt Securities reissued a “neutral” rating and set a $86.00 target price on shares of Roku in a research report on Thursday, February 13th. JPMorgan Chase & Co. raised their price target on shares of Roku from $92.00 to $115.00 and gave the company an “overweight” rating in a report on Friday, February 14th. Finally, Citigroup lifted their price target on shares of Roku from $70.00 to $103.00 and gave the stock a “neutral” rating in a research note on Thursday, February 20th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, Roku currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.71.

Roku Trading Down 3.7 %

The stock’s 50-day moving average price is $82.30 and its 200-day moving average price is $76.74. The company has a market capitalization of $11.19 billion, a P/E ratio of -86.15 and a beta of 2.12.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.20. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. Sell-side analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Dan Jedda sold 5,000 shares of Roku stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $100.40, for a total transaction of $502,000.00. Following the sale, the chief financial officer now owns 58,555 shares of the company’s stock, valued at approximately $5,878,922. The trade was a 7.87 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of the stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $80.36, for a total value of $153,166.16. Following the completion of the transaction, the chief accounting officer now directly owns 7,256 shares of the company’s stock, valued at $583,092.16. This trade represents a 20.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 118,308 shares of company stock worth $10,362,166 in the last three months. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

Hedge funds have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. increased its holdings in shares of Roku by 369.9% during the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after purchasing an additional 270 shares during the period. Vision Financial Markets LLC bought a new position in Roku in the 4th quarter valued at about $30,000. Raelipskie Partnership acquired a new position in Roku during the 3rd quarter valued at about $32,000. Game Plan Financial Advisors LLC bought a new stake in shares of Roku during the 4th quarter worth about $37,000. Finally, Harvest Fund Management Co. Ltd lifted its stake in shares of Roku by 4,091.7% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock worth $37,000 after acquiring an additional 491 shares during the period. 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.