Roku (NASDAQ:ROKU) Trading Up 5% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 5% during trading on Wednesday . The stock traded as high as $83.45 and last traded at $81.87. 1,767,172 shares changed hands during trading, a decline of 28% from the average session volume of 2,440,119 shares. The stock had previously closed at $77.99.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on ROKU shares. UBS Group started coverage on Roku in a research report on Friday, November 22nd. They set a “neutral” rating and a $73.00 price objective for the company. Benchmark restated a “buy” rating and issued a $105.00 price objective on shares of Roku in a report on Thursday, September 12th. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective on the stock in a research report on Tuesday, October 1st. Piper Sandler boosted their target price on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Finally, Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Trading Up 7.5 %

The stock has a market capitalization of $12.18 billion, a PE ratio of -69.88 and a beta of 2.05. The firm’s 50-day moving average price is $75.50 and its 200-day moving average price is $69.71.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.35) by $0.29. The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business’s revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the business earned ($2.33) EPS. On average, equities research analysts predict 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 10,771 shares of the business’s 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 transaction, the insider now directly owns 3,790 shares in the company, valued at $269,620.60. The trade was a 73.97 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. This trade represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 73,095 shares of company stock valued at $5,661,038 in the last quarter. 13.98% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Everence Capital Management Inc. purchased a new stake in shares of Roku during the 4th quarter worth about $350,000. Franklin Resources Inc. increased its stake in shares of Roku by 14.5% during the third quarter. Franklin Resources Inc. now owns 82,170 shares of the company’s stock worth $6,275,000 after purchasing an additional 10,416 shares in the last quarter. Sender Co & Partners Inc. acquired a new position in shares of Roku during the third quarter valued at approximately $827,000. M&T Bank Corp raised its stake in Roku by 19.1% in the 3rd quarter. M&T Bank Corp now owns 7,024 shares of the company’s stock valued at $525,000 after purchasing an additional 1,126 shares during the last quarter. Finally, Raelipskie Partnership purchased a new position in shares of Roku in the third quarter worth about $32,000. 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.