Roku (NASDAQ:ROKU) Stock Price Up 3.8% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 3.8% during mid-day trading on Friday . The stock traded as high as $77.40 and last traded at $76.61. 1,669,279 shares were traded during mid-day trading, a decline of 55% from the average session volume of 3,675,507 shares. The stock had previously closed at $73.82.

Analyst Ratings Changes

Several research analysts have recently issued reports on the company. Pivotal Research upgraded Roku from a “hold” rating to a “buy” rating and raised their price objective for the stock from $65.00 to $125.00 in a research note on Friday, February 14th. Wedbush reissued an “outperform” rating and set a $100.00 price objective on shares of Roku in a research note on Monday, February 10th. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $70.00 price objective on the stock in a research note on Tuesday, March 4th. Citigroup lifted their target price on Roku from $70.00 to $103.00 and gave the company a “neutral” rating in a research report on Thursday, February 20th. Finally, JPMorgan Chase & Co. lifted their target price on Roku from $92.00 to $115.00 and gave the company an “overweight” rating in a research report on Friday, February 14th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $96.71.

Roku Stock Performance

The company has a 50-day moving average price of $80.91 and a 200-day moving average price of $77.07. The firm has a market capitalization of $11.33 billion, a price-to-earnings ratio of -87.22 and a beta of 2.12.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.20. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. On average, research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the transaction, the chief financial officer now directly owns 63,555 shares of the company’s stock, valued at approximately $4,905,174.90. This represents a 1.55 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $79.77, for a total value of $1,994,250.00. Following the transaction, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at approximately $2,116,936.26. This trade represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 92,308 shares of company stock valued at $8,213,436 in the last ninety days. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Large investors have recently modified their holdings of the business. Geneos Wealth Management Inc. increased its stake in Roku by 369.9% in the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after purchasing an additional 270 shares in the last quarter. Vision Financial Markets LLC acquired a new stake in Roku during the 4th quarter valued at $30,000. Raelipskie Partnership acquired a new stake in Roku during the 3rd quarter valued at $32,000. Game Plan Financial Advisors LLC acquired a new stake in Roku during the 4th quarter valued at $37,000. Finally, Harvest Fund Management Co. Ltd grew its holdings in Roku by 4,091.7% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after buying an additional 491 shares during the last quarter. 86.30% of the stock is 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.