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

Roku, Inc. (NASDAQ:ROKU)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $79.91, but opened at $84.20. Roku shares last traded at $83.91, with a volume of 609,013 shares.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on ROKU shares. JPMorgan Chase & Co. boosted their price target on shares of Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a report on Thursday, October 10th. Loop Capital boosted their price target on shares of Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a report on Monday, December 9th. Citigroup boosted their price target on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Benchmark reaffirmed a “buy” rating and set a $105.00 price objective on shares of Roku in a report on Thursday, September 12th. Finally, Wells Fargo & Company upped their price objective on shares of Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a report on Thursday, October 31st. Two investment 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, Roku presently has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Trading Up 1.9 %

The firm has a fifty day moving average of $75.47 and a 200 day moving average of $69.54. The company has a market capitalization of $11.82 billion, a P/E ratio of -67.86 and a beta of 2.05.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the previous year, the firm earned ($2.33) EPS. The business’s quarterly revenue was up 16.5% on a year-over-year basis. Sell-side analysts anticipate that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Buying and Selling

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total value of $2,066,000.00. Following the sale, the chief executive officer now owns 26,538 shares in the company, valued at $2,193,100.32. This trade represents a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $82.73, for a total value of $82,730.00. Following the completion of the sale, the chief financial officer now owns 64,555 shares in the company, valued at approximately $5,340,635.15. The trade was a 1.53 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 73,095 shares of company stock valued at $5,661,038. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently made changes to their positions in the company. Holocene Advisors LP bought a new stake in Roku during the third quarter valued at about $129,015,000. Kessler Investment Group LLC boosted its position in Roku by 21.8% during the third quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after purchasing an additional 13,590 shares in the last quarter. National Bank of Canada FI boosted its position in Roku by 11,626.3% during the third quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock valued at $11,259,000 after purchasing an additional 149,514 shares in the last quarter. EULAV Asset Management boosted its position in Roku by 59.1% during the third quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock valued at $13,663,000 after purchasing an additional 68,000 shares in the last quarter. Finally, Granite Bay Wealth Management LLC purchased a new position in shares of Roku in the second quarter worth about $1,142,000. 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.