Roku (NASDAQ:ROKU) Trading Up 1.8% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price shot up 1.8% during trading on Friday . The company traded as high as $76.94 and last traded at $76.49. 511,489 shares were traded during mid-day trading, a decline of 82% from the average session volume of 2,791,463 shares. The stock had previously closed at $75.16.

Analyst Upgrades and Downgrades

ROKU has been the topic of several analyst reports. JPMorgan Chase & Co. lifted their target price on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research report on Thursday, October 10th. Moffett Nathanson cut Roku from a “neutral” rating to a “sell” rating and set a $55.00 price objective on the stock. in a research report on Friday, January 10th. Jefferies Financial Group cut their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Wells Fargo & Company raised their target price on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 31st. Finally, Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $82.62.

Roku Trading Up 1.7 %

The company has a market capitalization of $11.10 billion, a PE ratio of -63.90 and a beta of 2.05. The stock’s 50-day moving average is $76.70 and its two-hundred day moving average is $70.57.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping 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 firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the prior year, the business posted ($2.33) earnings per share. The company’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, equities research analysts forecast that Roku, Inc. will post -1.09 EPS for the current fiscal year.

Insider Activity

In related news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the transaction, the chief financial officer now directly owns 65,555 shares of the company’s stock, valued at $4,916,625. This trade represents a 1.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value 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. This represents a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 73,095 shares of company stock valued at $5,726,218. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Raelipskie Partnership acquired a new stake in Roku in the third quarter valued at approximately $32,000. EverSource Wealth Advisors LLC lifted its holdings in shares of Roku by 123.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after purchasing an additional 375 shares during the last quarter. Future Financial Wealth Managment LLC acquired a new stake in shares of Roku in the 3rd quarter worth $43,000. GS Investments Inc. grew its stake in Roku by 33.4% during the 3rd 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. Finally, Cedar Wealth Management LLC acquired a new position in Roku during the 2nd quarter valued at about $48,000. Hedge funds and other 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.