Roku (NASDAQ:ROKU) Shares Up 3.2% – Still a Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 3.2% during mid-day trading on Wednesday . The stock traded as high as $78.54 and last traded at $77.20. 522,545 shares traded hands during trading, a decline of 82% from the average session volume of 2,828,157 shares. The stock had previously closed at $74.80.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Bank of America boosted their target price on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research note on Monday, September 30th. Robert W. Baird raised Roku from a “neutral” rating to an “outperform” rating and upped their price objective for the company from $70.00 to $90.00 in a research report on Monday, November 18th. UBS Group started coverage on Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective for the company. Macquarie restated an “outperform” rating and set a $90.00 price objective on shares of Roku in a research report on Thursday, October 31st. Finally, Piper Sandler raised their price objective on shares of Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Roku currently has a consensus rating of “Hold” and an average price target of $82.62.

Roku Stock Up 2.9 %

The stock’s 50-day moving average is $76.55 and its 200-day moving average is $70.49. The firm has a market cap of $11.18 billion, a P/E ratio of -64.16 and a beta of 2.05.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.29. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the previous year, the company earned ($2.33) EPS. The firm’s revenue for the quarter was up 16.5% compared to the same quarter last year. As a group, analysts expect that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Transactions at Roku

In related news, insider Charles Collier sold 10,771 shares of the firm’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the transaction, the insider now directly owns 3,790 shares of the company’s stock, valued at approximately $269,620.60. This trade represents a 73.97 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total value of $75,000.00. Following the sale, the chief financial officer now directly owns 65,555 shares of the company’s stock, valued at $4,916,625. This represents a 1.50 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 72,095 shares of company stock valued at $5,649,038 in the last ninety days. 13.98% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Holocene Advisors LP bought a new position in Roku in the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP raised its position in shares of Roku by 126.1% during the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares during the period. Point72 Asset Management L.P. grew its stake in Roku by 352.5% in the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after purchasing an additional 507,643 shares during the period. JAT Capital Mgmt LP grew its stake in Roku by 470.2% in the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after purchasing an additional 445,777 shares during the period. Finally, FMR LLC grew its stake in Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after purchasing an additional 244,793 shares during the period. Institutional investors and hedge funds 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.