Roku (NASDAQ:ROKU) Shares Gap Up – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $79.91, but opened at $84.20. Roku shares last traded at $83.91, with a volume of 609,013 shares traded.

Analysts Set New Price Targets

A number of equities analysts have recently commented on ROKU shares. Robert W. Baird raised Roku from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $70.00 to $90.00 in a report on Monday, November 18th. UBS Group started coverage on Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price for the company. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price for the company in a report on Tuesday, October 1st. Loop Capital upped their price target on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research report on Monday, December 9th. Finally, Citigroup upped their target price on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research report on Wednesday, September 25th. Two 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 stock presently has a consensus rating of “Moderate Buy” and an average price target of $83.81.

Roku Trading Up 1.9 %

The stock has a market cap of $11.82 billion, a PE ratio of -67.86 and a beta of 2.05. The company’s 50 day moving average is $75.47 and its 200-day moving average is $69.54.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The business had revenue of $1.06 billion during 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%. Roku’s revenue for the quarter was up 16.5% compared to the same quarter last year. During the same period in the previous year, the firm posted ($2.33) earnings per share. As a group, analysts forecast that Roku, Inc. will post -1.1 EPS for the current year.

Insider Buying and Selling at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction 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 owns 5,020 shares of the company’s stock, valued at $387,544. This represents a 83.28 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charles Collier sold 10,771 shares of the stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.14, for a total transaction of $766,248.94. Following the sale, the insider now directly owns 3,790 shares of the company’s stock, valued at $269,620.60. This represents a 73.97 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 73,095 shares of company stock valued at $5,661,038. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ROKU. Raelipskie Partnership acquired a new stake in Roku in the third quarter valued at $32,000. EverSource Wealth Advisors LLC increased its stake in shares of Roku by 123.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after acquiring an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC bought a new stake in shares of Roku in the 3rd quarter valued at $43,000. GS Investments Inc. increased its stake in shares of Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after acquiring an additional 147 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in Roku during the 2nd quarter valued at $48,000. Institutional investors and hedge funds 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.