Roku (NASDAQ:ROKU) Shares Up 1.2% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shot up 1.2% on Tuesday . The company traded as high as $81.99 and last traded at $81.16. 464,382 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 2,764,608 shares. The stock had previously closed at $80.21.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on ROKU shares. Rosenblatt Securities lifted their price objective on shares of Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Wedbush reissued an “outperform” rating and issued a $100.00 price target on shares of Roku in a research note on Wednesday, January 8th. JMP Securities began coverage on Roku in a report on Tuesday, January 21st. They set a “mkt outperform” rating and a $95.00 price objective on the stock. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 target price on shares of Roku in a report on Tuesday, January 7th. Finally, Jefferies Financial Group cut their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a report on Friday, November 1st. Three research analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $83.18.

Roku Price Performance

The stock has a market cap of $11.96 billion, a price-to-earnings ratio of -68.62 and a beta of 2.05. The business has a fifty day moving average of $77.43 and a 200 day moving average of $71.56.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping 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 analyst estimates of $1.02 billion. During the same quarter in the prior year, the business posted ($2.33) EPS. Roku’s quarterly revenue was up 16.5% on a year-over-year basis. On average, analysts expect that Roku, Inc. will post -1.09 EPS for the current year.

Insider Buying and Selling at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction on Monday, December 16th. The shares were sold at an average price of $82.73, for a total value of $82,730.00. Following the completion of the sale, the chief financial officer now directly owns 64,555 shares in the company, valued at approximately $5,340,635.15. The trade was a 1.53 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 73,095 shares of company stock worth $5,726,218 over the last three months. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Large investors have recently made changes to their positions in the business. Entropy Technologies LP raised its stake in Roku by 264.4% during the 4th quarter. Entropy Technologies LP now owns 25,525 shares of the company’s stock valued at $1,898,000 after purchasing an additional 18,520 shares during the last quarter. Apollon Wealth Management LLC increased its holdings in shares of Roku by 11.7% during the 4th quarter. Apollon Wealth Management LLC now owns 6,355 shares of the company’s stock worth $472,000 after purchasing an additional 665 shares during the period. Ameliora Wealth Management Ltd. acquired a new position in shares of Roku during the fourth quarter valued at about $92,000. Verity Asset Management Inc. lifted its stake in shares of Roku by 14.2% in the fourth quarter. Verity Asset Management Inc. now owns 17,303 shares of the company’s stock valued at $1,286,000 after buying an additional 2,157 shares during the period. Finally, abrdn plc grew its position in Roku by 12.0% during the fourth quarter. abrdn plc now owns 3,881 shares of the company’s stock worth $289,000 after buying an additional 417 shares in the last quarter. 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.