Roku (NASDAQ:ROKU) Shares Up 1.9% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price shot up 1.9% during mid-day trading on Wednesday . The stock traded as high as $84.29 and last traded at $83.34. 425,016 shares changed hands during mid-day trading, a decline of 90% from the average session volume of 4,416,229 shares. The stock had previously closed at $81.82.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Macquarie restated an “outperform” rating and set a $90.00 price target on shares of Roku in a research report on Thursday, October 31st. Citigroup boosted their target price on Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Guggenheim upgraded shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price target on the stock in a research report on Friday, August 23rd. Morgan Stanley boosted their price objective on shares of Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a report on Tuesday, October 29th. Finally, Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and increased their target price for the company from $70.00 to $90.00 in a report on Monday, November 18th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $83.81.

Roku Stock Performance

The stock has a market capitalization of $11.97 billion, a P/E ratio of -69.45 and a beta of 2.06. The business has a 50-day moving average price of $74.56 and a 200 day moving average price of $66.49.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The firm had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company’s quarterly revenue was up 16.5% on a year-over-year basis. During the same period in the prior year, the firm posted ($2.33) earnings per share. As a group, research analysts forecast that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In related news, insider Charles Collier sold 15,454 shares of the firm’s stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total value of $1,159,050.00. Following the transaction, the insider now directly owns 200 shares of the company’s stock, valued at approximately $15,000. This trade represents a 98.72 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $77.20, for a total value of $1,930,000.00. Following the sale, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at $387,544. This represents a 83.28 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 88,550 shares of company stock worth $6,621,873. Company insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Kessler Investment Group LLC lifted its holdings in Roku by 21.8% during the third quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after purchasing an additional 13,590 shares in the last quarter. Holocene Advisors LP purchased a new position in shares of Roku during the 3rd quarter valued at $129,015,000. EULAV Asset Management boosted its holdings in Roku by 59.1% in the 3rd quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock worth $13,663,000 after buying an additional 68,000 shares during the period. Granite Bay Wealth Management LLC purchased a new stake in Roku in the 2nd quarter worth $1,142,000. Finally, Mackenzie Financial Corp bought a new stake in Roku during the second quarter valued at about $662,000. 86.30% of the stock is currently owned by institutional investors.

About Roku

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.