Roku (NASDAQ:ROKU) Trading Up 1.7% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 1.7% during trading on Wednesday . The stock traded as high as $72.68 and last traded at $70.82. 764,664 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 3,730,038 shares. The stock had previously closed at $69.64.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Jefferies Financial Group upgraded shares of Roku from an “underperform” rating to a “hold” rating and upped their price objective for the company from $55.00 to $100.00 in a report on Thursday, February 20th. Needham & Company LLC restated a “buy” rating and issued a $100.00 price target on shares of Roku in a research note on Tuesday, January 7th. JMP Securities upped their price target on shares of Roku from $95.00 to $115.00 and gave the company a “market outperform” rating in a research note on Friday, February 14th. Wells Fargo & Company upgraded shares of Roku from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $74.00 to $129.00 in a research note on Friday, February 14th. Finally, Wedbush reaffirmed an “outperform” rating and set a $100.00 price objective on shares of Roku in a research report on Monday, February 10th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, fourteen have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $96.71.

Roku Stock Up 0.2 %

The company has a 50 day moving average price of $81.92 and a 200-day moving average price of $77.01. The company has a market cap of $9.89 billion, a price-to-earnings ratio of -76.16 and a beta of 2.12.

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

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the completion of the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at approximately $2,116,936.26. This represents a 48.51 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 7,181 shares of the stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total transaction of $561,913.25. Following the sale, the insider now directly owns 7,380 shares of the company’s stock, valued at $577,485. This represents a 49.32 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 93,308 shares of company stock valued at $8,296,166 over the last quarter. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

Large investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. grew its position in shares of Roku by 369.9% during the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock worth $25,000 after buying an additional 270 shares during the period. Vision Financial Markets LLC acquired a new stake in shares of Roku during the 4th quarter worth approximately $30,000. Raelipskie Partnership acquired a new stake in shares of Roku during the 3rd quarter worth approximately $32,000. Game Plan Financial Advisors LLC acquired a new stake in shares of Roku during the 4th quarter worth approximately $37,000. Finally, Harvest Fund Management Co. Ltd grew its position in shares of Roku by 4,091.7% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock worth $37,000 after buying an additional 491 shares during the period. 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.