Roku (NASDAQ:ROKU) Shares Up 0% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price shot up 0% on Wednesday . The company traded as high as $82.83 and last traded at $82.36. 351,659 shares traded hands during mid-day trading, a decline of 87% from the average session volume of 2,708,599 shares. The stock had previously closed at $82.34.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on ROKU shares. JMP Securities began coverage on shares of Roku in a research note on Tuesday, January 21st. They set a “mkt outperform” rating and a $95.00 price objective on the stock. Piper Sandler boosted their price target on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Wedbush reiterated an “outperform” rating and set a $100.00 target price on shares of Roku in a report on Wednesday, January 8th. UBS Group began coverage on Roku in a research report on Friday, November 22nd. They set a “neutral” rating and a $73.00 price target on the stock. Finally, JPMorgan Chase & Co. raised their target price on shares of Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a report on Thursday, October 10th. Three research analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $83.18.

Roku Stock Down 3.0 %

The stock has a market cap of $12.02 billion, a price-to-earnings ratio of -68.97 and a beta of 2.05. The business’s 50 day simple moving average is $78.21 and its 200 day simple moving average is $71.88.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (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 the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. Roku’s revenue was up 16.5% on a year-over-year basis. During the same period last year, the business posted ($2.33) EPS. Equities research analysts forecast that Roku, Inc. will post -1.09 earnings per share for the current fiscal year.

Insider Activity

In other Roku 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 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 $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total value of $2,066,000.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,193,100.32. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 72,885 shares of company stock valued at $5,712,912 over the last three months. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

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