Roku (NASDAQ:ROKU) Trading Up 0.2% – Should You Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) traded up 0.2% during mid-day trading on Tuesday . The company traded as high as $79.37 and last traded at $78.98. 224,264 shares were traded during trading, a decline of 95% from the average session volume of 4,347,896 shares. The stock had previously closed at $78.80.

Wall Street Analyst Weigh In

Several analysts have commented on ROKU shares. Citigroup raised their price objective on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. JPMorgan Chase & Co. increased their price objective on shares of Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a report on Thursday, October 10th. Macquarie reissued an “outperform” rating and set a $90.00 target price on shares of Roku in a research note on Thursday, October 31st. Jefferies Financial Group decreased their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Finally, Benchmark reiterated a “buy” rating and set a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Stock Up 1.0 %

The firm has a 50-day moving average of $75.37 and a two-hundred day moving average of $67.99. The company has a market capitalization of $11.55 billion, a PE ratio of -66.30 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released 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 analysts’ expectations 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 was up 16.5% compared to the same quarter last year. During the same period in the prior year, the business posted ($2.33) EPS. On average, equities research analysts expect that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity

In other news, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total transaction of $76,250.00. Following the completion of the transaction, the chief financial officer now owns 53,267 shares of the company’s stock, valued at $4,061,608.75. This trade represents a 1.84 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 73,096 shares of company stock valued at $5,661,223. Company insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Holocene Advisors LP acquired a new stake in Roku in the 3rd quarter valued at about $129,015,000. Westfield Capital Management Co. LP raised its holdings in Roku by 126.1% in the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after acquiring an additional 856,401 shares in the last quarter. Point72 Asset Management L.P. lifted its stake in Roku by 352.5% in the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after acquiring an additional 507,643 shares during the last quarter. JAT Capital Mgmt LP grew its holdings in Roku by 470.2% during the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after acquiring an additional 445,777 shares in the last quarter. Finally, FMR LLC increased its position in shares of Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after purchasing an additional 244,793 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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.