Roku (NASDAQ:ROKU) Trading 1.2% Higher – Still a Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) rose 1.2% during mid-day trading on Monday . The company traded as high as $142.87 and last traded at $142.34. 2,888,253 shares changed hands during mid-day trading, a decline of 25% from the average daily volume of 3,845,385 shares. The stock had previously closed at $140.69.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. Morgan Stanley raised their target price on shares of Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Rosenblatt Securities upped their price objective on Roku from $150.00 to $160.00 and gave the company a “buy” rating in a research note on Tuesday, June 16th. KeyCorp cut Roku from an “overweight” rating to a “sector weight” rating in a research report on Monday, June 15th. Susquehanna downgraded Roku from a “positive” rating to a “neutral” rating and set a $160.00 target price for the company. in a research note on Tuesday, June 16th. Finally, JPMorgan Chase & Co. restated a “neutral” rating and issued a $160.00 price target (up from $150.00) on shares of Roku in a research note on Tuesday, June 16th. Eleven research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $153.71.

Roku Stock Up 1.2%

The firm has a 50 day simple moving average of $130.91 and a two-hundred day simple moving average of $111.42. The stock has a market capitalization of $20.99 billion, a P/E ratio of 107.02 and a beta of 2.01.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same quarter last year, the company posted ($0.19) EPS. The company’s revenue for the quarter was up 22.4% compared to the same quarter last year. On average, research analysts predict that Roku, Inc. will post 2.41 earnings per share for the current year.

Insiders Place Their Bets

In other Roku news, insider Charles Collier sold 205,807 shares of Roku stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $115.00, for a total value of $23,667,805.00. Following the transaction, the insider owned 7,700 shares in the company, valued at $885,500. The trade was a 96.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 9,593 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $125.52, for a total value of $1,204,113.36. Following the transaction, the insider directly owned 50,863 shares of the company’s stock, valued at approximately $6,384,323.76. The trade was a 15.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 477,737 shares of company stock worth $58,132,511. Insiders own 13.45% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently added to or reduced their stakes in ROKU. Jefferies Financial Group Inc. bought a new position in shares of Roku in the 4th quarter valued at $1,345,000. Holocene Advisors LP grew its position in Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after acquiring an additional 1,285,585 shares during the last quarter. Moran Wealth Management LLC acquired a new position in Roku in the 1st quarter worth about $2,990,000. MH & Associates Securities Management Corp ADV acquired a new position in Roku in the 4th quarter worth about $2,398,000. Finally, Maxi Investments CY Ltd bought a new position in Roku in the fourth quarter valued at about $1,953,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

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.