Roku (NASDAQ:ROKU) Shares Up 10.6% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 10.6% during trading on Wednesday . The stock traded as high as $83.80 and last traded at $83.71. 4,586,138 shares were traded during trading, an increase of 4% from the average session volume of 4,410,844 shares. The stock had previously closed at $75.69.

Wall Street Analysts Forecast Growth

ROKU has been the topic of a number of recent research reports. Wells Fargo & Company upped their target price on Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a research note on Thursday, October 31st. Guggenheim upgraded Roku from a “neutral” rating to a “buy” rating and set a $75.00 price target for the company in a report on Friday, August 23rd. Macquarie reiterated an “outperform” rating and issued a $90.00 price target on shares of Roku in a report on Thursday, October 31st. Moffett Nathanson upgraded Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective for the company in a report on Tuesday, October 1st. Finally, Rosenblatt Securities upped their price objective on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Roku has an average rating of “Moderate Buy” and an average price target of $82.62.

Roku Price Performance

The business’s fifty day moving average price is $73.68 and its 200-day moving average price is $65.60. The stock has a market capitalization of $12.04 billion, a PE ratio of -69.26 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.29. The business had revenue of $1.06 billion during the quarter, compared to analyst estimates 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 revenue for the quarter was up 16.5% on a year-over-year basis. During the same quarter last year, the firm posted ($2.33) earnings per share. On average, analysts expect that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In related news, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction that occurred on Monday, November 18th. The stock was 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Charles Collier sold 10,771 shares of the business’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the sale, the insider now owns 3,790 shares in the company, valued at $269,620.60. This represents a 73.97 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 88,550 shares of company stock valued at $6,621,873 in the last quarter. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

Several hedge funds have recently modified their holdings of the business. Raelipskie Partnership purchased a new stake in shares of Roku in the third quarter valued at $32,000. Future Financial Wealth Managment LLC acquired a new position in shares of Roku in the third quarter worth about $43,000. GS Investments Inc. lifted its stake in shares of Roku by 33.4% in the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after acquiring an additional 147 shares in the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after acquiring an additional 375 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in Roku in the second quarter valued at about $48,000. 86.30% of the stock is owned by institutional investors and hedge funds.

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.