Roku (NASDAQ:ROKU) Trading 2.6% Higher – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) traded up 2.6% during trading on Friday . The company traded as high as $80.45 and last traded at $80.43. 681,575 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 4,360,282 shares. The stock had previously closed at $78.43.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on ROKU shares. Jefferies Financial Group cut their price target 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 upped their price target on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Citigroup lifted their target price on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Wells Fargo & Company upped their price target on shares of Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a report on Thursday, October 31st. Finally, Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and a consensus price target of $83.81.

Roku Price Performance

The stock’s 50-day simple moving average is $75.28 and its 200 day simple moving average is $67.55. The stock has a market capitalization of $11.65 billion, a P/E ratio of -66.87 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings results 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. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the previous year, the company posted ($2.33) EPS. The firm’s quarterly revenue was up 16.5% on a year-over-year basis. As a group, analysts expect that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roku news, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now directly owns 7,264 shares in the company, valued at approximately $518,940.16. This represents a 54.48 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the transaction, the chief executive officer now owns 5,020 shares in the company, valued at approximately $387,544. The trade was a 83.28 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 73,096 shares of company stock valued at $5,661,223 over the last quarter. 13.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Several large investors have recently added to or reduced their stakes in the business. Raelipskie Partnership purchased a new position in shares of Roku in the 3rd quarter worth approximately $32,000. Future Financial Wealth Managment LLC bought a new position in Roku during the third quarter valued at about $43,000. GS Investments Inc. increased its holdings in Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after acquiring an additional 375 shares during the period. Finally, Cedar Wealth Management LLC purchased a new position in Roku in the second quarter valued at about $48,000. Institutional investors 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.