Roku (NASDAQ:ROKU) Trading Up 1.7% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shot up 1.7% during mid-day trading on Wednesday . The stock traded as high as $72.68 and last traded at $70.82. 764,664 shares traded hands during trading, a decline of 79% from the average session volume of 3,730,038 shares. The stock had previously closed at $69.64.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ROKU. Loop Capital increased their price target on shares of Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a report on Monday, December 9th. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and increased their target price for the company from $65.00 to $125.00 in a report on Friday, February 14th. Rosenblatt Securities reaffirmed a “neutral” rating and issued a $86.00 target price on shares of Roku in a report on Thursday, February 13th. Citizens Jmp raised shares of Roku to a “strong-buy” rating in a report on Tuesday, January 21st. Finally, Benchmark increased their target price on shares of Roku from $100.00 to $130.00 and gave the company a “buy” rating in a report on Friday, February 14th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, fourteen have given a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $96.71.

Roku Stock Performance

The business’s 50 day moving average is $81.92 and its 200-day moving average is $77.01. The firm has a market capitalization of $9.89 billion, a price-to-earnings ratio of -76.16 and a beta of 2.12.

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

Insider Transactions at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,116,936.26. This trade represents a 48.51 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the transaction, the chief financial officer now directly owns 64,555 shares in the company, valued at $5,340,635.15. The trade was a 1.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 93,308 shares of company stock worth $8,296,166 in the last quarter. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ROKU. FMR LLC lifted its position in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock worth $1,426,134,000 after purchasing an additional 4,613,570 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Roku by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock worth $910,597,000 after purchasing an additional 185,676 shares in the last quarter. Marshall Wace LLP lifted its position in shares of Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock worth $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its position in shares of Roku by 10.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock worth $168,734,000 after purchasing an additional 215,841 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock worth $159,353,000 after purchasing an additional 56,820 shares in the last quarter. 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.