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

Roku, Inc. (NASDAQ:ROKU)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $67.36, but opened at $69.47. Roku shares last traded at $73.11, with a volume of 1,090,831 shares traded.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of analyst reports. UBS Group boosted their price objective on Roku from $73.00 to $90.00 and gave the stock a “neutral” rating in a research report on Friday, February 14th. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $70.00 price objective for the company in a research report on Tuesday, March 4th. Wedbush reissued an “outperform” rating and set a $100.00 price objective on shares of Roku in a research report on Monday, February 10th. Citizens Jmp raised Roku to a “strong-buy” rating in a research report on Tuesday, January 21st. Finally, Citigroup boosted their target price on Roku from $70.00 to $103.00 and gave the stock a “neutral” rating in a research note on Thursday, February 20th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $96.71.

Roku Price Performance

The company has a 50-day moving average price of $80.91 and a 200-day moving average price of $77.07. The firm has a market capitalization of $10.77 billion, a PE ratio of -82.94 and a beta of 2.12.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. On average, research analysts predict that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Monday, February 10th. The stock was sold at an average price of $87.93, for a total value of $2,198,250.00. Following the completion of the sale, the chief executive officer now owns 26,538 shares in the company, valued at $2,333,486.34. The trade was a 48.51 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total value of $77,180.00. Following the completion of the sale, the chief financial officer now owns 63,555 shares of the company’s stock, valued at $4,905,174.90. This trade represents a 1.55 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 92,308 shares of company stock worth $8,213,436 over the last three months. 13.98% of the stock is currently owned by corporate insiders.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Geneos Wealth Management Inc. lifted its stake in shares of Roku by 369.9% in the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after purchasing an additional 270 shares in the last quarter. Vision Financial Markets LLC acquired a new position in shares of Roku in the 4th quarter valued at about $30,000. Raelipskie Partnership acquired a new position in shares of Roku in the 3rd quarter valued at about $32,000. Game Plan Financial Advisors LLC acquired a new position in shares of Roku in the 4th quarter valued at about $37,000. Finally, Harvest Fund Management Co. Ltd lifted its stake in shares of Roku by 4,091.7% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after purchasing an additional 491 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.