Roku (NASDAQ:ROKU) Stock Price Up 1.4% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU) shares traded up 1.4% on Thursday. The stock traded as high as $160.10 and last traded at $160.06. 4,805,372 shares traded hands during mid-day trading, an increase of 47% from the average daily volume of 3,277,903 shares. The stock had previously closed at $157.78.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: A report that the U.S. Department of Justice could soon approve the Roku/Fox deal reduced the transaction’s regulatory uncertainty and narrowed the deal spread, potentially supporting Roku’s strategic and financial outlook. Roku/Fox deal spread narrows on report DOJ could soon approve deal
• Positive Sentiment: Roku is emphasizing interoperability, measurement and frequency controls as connected-TV advertising attracts more traditional television budgets. Better data integration and advertiser accountability could support growth in Roku’s advertising platform. Roku Bets on Interoperability as CTV Moves From Reach to Accountability
• Neutral Sentiment: Roku’s latest software update was described as a free device upgrade, while its Pro Series LX OLED televisions became available through Amazon. These developments may improve customer engagement and product visibility, but their near-term effect on financial results is unclear. Roku’s latest update is like a free upgrade for your device Roku’s Pro Series LX OLED TVs Are Now Available On Amazon
• Negative Sentiment: SBS Law announced an opportunity for Roku investors to participate in a fraud investigation. The announcement does not establish wrongdoing, but investigations can increase litigation costs, create reputational concerns and pressure the stock, particularly while Roku trades at an elevated valuation. ROKU Investors Have Opportunity to Join Roku, Inc. Fraud Investigation with SBS Law

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. Weiss Ratings upgraded shares of Roku from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Citigroup upped their price objective on Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a report on Friday, July 17th. Guggenheim lowered Roku from a “buy” rating to a “neutral” rating and increased their price objective for the company from $145.00 to $160.00 in a research report on Friday, August 7th. Finally, Needham & Company LLC reiterated a “buy” rating on shares of Roku in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $156.17.

Roku Trading Down 0.9%

The firm’s 50 day moving average price is $155.25 and its 200-day moving average price is $139.43. The company has a market cap of $23.54 billion, a P/E ratio of 67.77 and a beta of 2.05.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, August 6th. The company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the previous year, the firm posted $0.07 earnings per share. Roku’s revenue for the quarter was up 21.9% compared to the same quarter last year. Analysts predict that Roku, Inc. will post 2.97 earnings per share for the current fiscal year.

Insider Activity at Roku

In related news, CAO Matthew C. Banks sold 554 shares of Roku stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $152.21, for a total transaction of $84,324.34. Following the completion of the sale, the chief accounting officer directly owned 7,568 shares of the company’s stock, valued at $1,151,925.28. The trade was a 6.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 4,824 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $750,807.36. Following the completion of the sale, the insider owned 40,168 shares of the company’s stock, valued at $6,251,747.52. This represents a 10.72% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 119,285 shares of company stock worth $18,224,865. 13.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Several institutional investors have recently modified their holdings of ROKU. Signaturefd LLC raised its holdings in Roku by 29.5% during the 3rd quarter. Signaturefd LLC now owns 1,968 shares of the company’s stock worth $300,000 after buying an additional 448 shares during the period. BG Investment Services LLC bought a new position in Roku in the third quarter valued at approximately $3,897,000. Evergreen Capital Management LLC boosted its holdings in shares of Roku by 28.6% in the third quarter. Evergreen Capital Management LLC now owns 3,541 shares of the company’s stock valued at $539,000 after buying an additional 787 shares during the period. Crossmark Global Holdings Inc. boosted its holdings in shares of Roku by 2.6% in the third quarter. Crossmark Global Holdings Inc. now owns 53,497 shares of the company’s stock valued at $8,147,000 after buying an additional 1,353 shares during the period. Finally, Nisa Investment Advisors LLC increased its position in shares of Roku by 57.9% during the third quarter. Nisa Investment Advisors LLC now owns 2,891 shares of the company’s stock worth $440,000 after acquiring an additional 1,060 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.