Roku (NASDAQ:ROKU) Shares Up 4.5% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU) shot up 4.5% during mid-day trading on Monday . The stock traded as high as $81.48 and last traded at $80.89. 974,046 shares were traded during trading, a decline of 46% from the average session volume of 1,791,405 shares. The stock had previously closed at $77.38.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ROKU. Bank of America boosted their price target on shares of Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Needham & Company LLC reiterated a “buy” rating and set a $100.00 price target on shares of Roku in a research report on Wednesday, December 4th. Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective on the stock in a research note on Thursday, September 12th. Finally, UBS Group began coverage on shares of Roku in a research note on Friday, November 22nd. They set a “neutral” rating and a $73.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $83.81.

Roku Price Performance

The company has a market cap of $11.57 billion, a P/E ratio of -66.42 and a beta of 2.05. The stock’s 50-day moving average is $75.39 and its two-hundred day moving average is $69.24.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The firm’s revenue for the quarter was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($2.33) earnings per share. On average, analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, October 10th. The shares were sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the completion of the sale, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at approximately $387,544. This represents a 83.28 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $82.73, for a total transaction of $82,730.00. Following the sale, the chief financial officer now directly owns 64,555 shares of the company’s stock, valued at approximately $5,340,635.15. This represents a 1.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 73,095 shares of company stock valued at $5,661,038. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently modified their holdings of the company. Raelipskie Partnership purchased a new stake in shares of Roku in the third quarter worth $32,000. EverSource Wealth Advisors LLC increased its stake in shares of Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after purchasing an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC bought a new position in shares of Roku during the third quarter worth $43,000. GS Investments Inc. boosted its position in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after acquiring an additional 147 shares during the last quarter. Finally, Cedar Wealth Management LLC bought a new position in shares of Roku during the second quarter worth $48,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.