Roku (NASDAQ:ROKU) Stock Price Up 3.2% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU) traded up 3.2% on Wednesday . The stock traded as high as $78.54 and last traded at $77.20. 522,545 shares changed hands during trading, a decline of 82% from the average session volume of 2,828,157 shares. The stock had previously closed at $74.80.

Analyst Ratings Changes

Several analysts have recently commented on ROKU shares. Bank of America raised their target price on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research note on Monday, September 30th. Macquarie reissued an “outperform” rating and issued a $90.00 price objective on shares of Roku in a research note on Thursday, October 31st. Baird R W raised Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Wedbush reiterated an “outperform” rating and issued a $100.00 target price on shares of Roku in a report on Wednesday, January 8th. Finally, UBS Group began coverage on shares of Roku in a research note on Friday, November 22nd. They set a “neutral” rating and a $73.00 price target for the company. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $82.62.

Roku Stock Up 1.0 %

The stock has a market cap of $11.02 billion, a P/E ratio of -63.24 and a beta of 2.05. The business’s 50-day simple moving average is $76.70 and its two-hundred day simple moving average is $70.57.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate 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 company had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same period last year, the firm earned ($2.33) EPS. Roku’s revenue for the quarter was up 16.5% on a year-over-year basis. Analysts anticipate that Roku, Inc. will post -1.09 earnings per share for the current fiscal year.

Insider Activity at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the completion of the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,193,100.32. The trade was a 48.51 % decrease in their position. The transaction 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 stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the sale, the chief accounting officer now directly owns 7,264 shares in the company, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 73,095 shares of company stock worth $5,726,218. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ROKU. FMR LLC boosted its stake in Roku by 1.7% during the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after buying an additional 244,793 shares during the period. Holocene Advisors LP purchased a new stake in shares of Roku in the 3rd quarter valued at about $129,015,000. Westfield Capital Management Co. LP increased its position in shares of Roku by 126.1% in the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Roku by 3.2% in the third quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock valued at $71,373,000 after purchasing an additional 30,038 shares in the last quarter. Finally, Point72 Asset Management L.P. lifted its position in Roku by 352.5% during the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after purchasing an additional 507,643 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other 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.