Roku (NASDAQ:ROKU) Shares Up 6.4% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU) shares shot up 6.4% during trading on Thursday . The stock traded as high as $84.92 and last traded at $83.00. 5,495,623 shares were traded during trading, an increase of 70% from the average session volume of 3,238,221 shares. The stock had previously closed at $77.99.

Wall Street Analyst Weigh In

Several research firms have commented on ROKU. Loop Capital upped their price objective on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research note on Monday, December 9th. 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 note on Monday, November 18th. UBS Group started coverage on Roku in a research note on Friday, November 22nd. They set a “neutral” rating and a $73.00 price objective for the company. Macquarie reissued an “outperform” rating and set a $90.00 target price on shares of Roku in a research note on Thursday, October 31st. Finally, Benchmark reissued a “buy” rating and set a $105.00 target price on shares of Roku in a research note on Thursday, September 12th. 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 given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $83.81.

Roku Price Performance

The firm has a 50-day simple moving average of $75.61 and a 200 day simple moving average of $69.80. The company has a market capitalization of $12.05 billion, a PE ratio of -69.17 and a beta of 2.05.

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

Insider Buying and Selling

In other Roku news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $82.73, for a total value of $82,730.00. Following the completion of the transaction, the chief financial officer now directly owns 64,555 shares in the company, valued at $5,340,635.15. The trade was a 1.53 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total value of $2,066,000.00. Following the sale, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,193,100.32. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 48,095 shares of company stock worth $3,731,038. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. FMR LLC grew its position in Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after buying an additional 244,793 shares during the last quarter. Holocene Advisors LP acquired a new position in Roku in the third quarter worth approximately $129,015,000. Westfield Capital Management Co. LP grew its position in Roku by 126.1% in the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after buying an additional 856,401 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in Roku by 3.2% in the third quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock worth $71,373,000 after buying an additional 30,038 shares during the last quarter. Finally, Point72 Asset Management L.P. grew its position in Roku by 352.5% in the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after buying an additional 507,643 shares during the last quarter. 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.