Roku (NASDAQ:ROKU) Shares Up 2.1% – Should You Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 2.1% during mid-day trading on Wednesday . The stock traded as high as $78.40 and last traded at $78.20. 590,852 shares were traded during mid-day trading, a decline of 87% from the average session volume of 4,413,348 shares. The stock had previously closed at $76.62.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on ROKU. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price on the stock in a report on Tuesday, October 1st. Guggenheim raised Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective on the stock in a research note on Friday, August 23rd. JPMorgan Chase & Co. boosted their price objective on Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th. Rosenblatt Securities boosted their price objective on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Finally, Wedbush boosted their price objective on Roku from $75.00 to $85.00 and gave the stock an “outperform” rating in a research note on Friday, October 25th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and twelve have given a buy rating to the company’s stock. According to MarketBeat.com, Roku presently has an average rating of “Hold” and a consensus target price of $83.95.

Roku Trading Down 1.4 %

The business has a 50-day moving average price of $73.89 and a 200-day moving average price of $64.44.

Roku (NASDAQ:ROKU) last released its 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. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same period last year, the company posted ($2.33) EPS. The business’s revenue was up 16.5% on a year-over-year basis. Equities research analysts anticipate that Roku, Inc. will post -1.1 EPS for the current year.

Insider Transactions at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the completion of the sale, the chief executive officer now owns 5,020 shares in the company, valued at $376,500. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total value of $109,012.27. Following the completion of the sale, the insider now owns 38,602 shares in the company, valued at approximately $2,485,582.78. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the completion of the transaction, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at $376,500. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 69,776 shares of company stock worth $5,267,305 in the last 90 days. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. FMR LLC grew its holdings in Roku by 1.7% during the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after acquiring an additional 244,793 shares in the last quarter. ARK Investment Management LLC boosted its holdings in shares of Roku by 1.3% in the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock valued at $762,096,000 after buying an additional 159,785 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Roku by 0.8% in the 1st quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock valued at $778,560,000 after buying an additional 92,658 shares during the period. Westfield Capital Management Co. LP boosted its holdings in shares of Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after buying an additional 856,401 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its holdings in shares of Roku by 3.2% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock valued at $71,373,000 after buying an additional 30,038 shares during the period. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.