Roku (NASDAQ:ROKU) Trading Up 1.3% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 1.3% during mid-day trading on Thursday . The stock traded as high as $94.15 and last traded at $93.47. 2,737,797 shares changed hands during mid-day trading, a decline of 28% from the average session volume of 3,816,397 shares. The stock had previously closed at $92.28.

Analyst Ratings Changes

A number of research firms have recently issued reports on ROKU. Wall Street Zen upgraded Roku from a “hold” rating to a “buy” rating in a report on Sunday, December 7th. Moffett Nathanson reaffirmed a “neutral” rating and issued a $100.00 target price on shares of Roku in a research note on Friday, February 13th. Susquehanna reiterated a “positive” rating and set a $130.00 price target on shares of Roku in a research report on Friday, October 31st. UBS Group reissued a “neutral” rating and issued a $110.00 price target on shares of Roku in a research note on Friday, February 13th. Finally, Wells Fargo & Company upped their price target on shares of Roku from $116.00 to $137.00 and gave the company an “overweight” rating in a research report on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $123.96.

Roku Price Performance

The company has a market capitalization of $13.78 billion, a P/E ratio of 163.99 and a beta of 1.99. The company has a 50 day moving average of $101.10 and a 200-day moving average of $99.09.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The business had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. During the same quarter last year, the business posted ($0.24) EPS. The business’s revenue was up 16.1% on a year-over-year basis. Research analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 75,000 shares of the stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $109.61, for a total value of $8,220,750.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Gilbert Fuchsberg sold 3,250 shares of Roku stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the sale, the insider directly owned 59,094 shares in the company, valued at approximately $6,428,245.32. The trade was a 5.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 219,710 shares of company stock worth $22,761,608 over the last ninety days. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. CWM LLC grew its holdings in shares of Roku by 345.4% in the third quarter. CWM LLC now owns 84,010 shares of the company’s stock valued at $8,412,000 after purchasing an additional 65,150 shares in the last quarter. Accurate Wealth Management LLC purchased a new stake in shares of Roku in the third quarter worth approximately $1,115,000. AGF Management Ltd. bought a new stake in shares of Roku during the 3rd quarter worth approximately $15,023,000. Monetta Financial Services Inc. boosted its holdings in Roku by 50.0% during the 2nd quarter. Monetta Financial Services Inc. now owns 15,000 shares of the company’s stock valued at $1,318,000 after acquiring an additional 5,000 shares during the period. Finally, Convergence Investment Partners LLC bought a new position in Roku in the 3rd quarter valued at $2,492,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.