Roku (NASDAQ:ROKU) Trading 10.6% Higher – Time to Buy?

Roku, Inc. (NASDAQ:ROKU) rose 10.6% during mid-day trading on Wednesday . The stock traded as high as $83.80 and last traded at $83.71. Approximately 4,586,138 shares changed hands during trading, an increase of 4% from the average daily volume of 4,410,844 shares. The stock had previously closed at $75.69.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ROKU. Robert W. Baird upgraded Roku from a “neutral” rating to an “outperform” rating and upped their target price for the stock from $70.00 to $90.00 in a research report on Monday, November 18th. Jefferies Financial Group dropped 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. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Piper Sandler upped 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. Finally, Citigroup increased their target price on shares of Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $82.62.

Roku Stock Performance

The firm has a market capitalization of $12.04 billion, a price-to-earnings ratio of -69.26 and a beta of 2.06. The company has a 50 day moving average price of $73.68 and a two-hundred day moving average price of $65.60.

Roku (NASDAQ:ROKU) last posted 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. 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 during the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the prior year, the company earned ($2.33) EPS. The firm’s revenue was up 16.5% compared to the same quarter last year. On average, equities analysts expect that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Charles Collier sold 15,454 shares of the stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now directly owns 200 shares in the company, valued at approximately $15,000. This represents a 98.72 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. This represents a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 88,550 shares of company stock valued at $6,621,873 in the last three months. 13.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently bought and sold shares of the stock. FMR LLC raised its position in 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 in the last quarter. ARK Investment Management LLC raised its position in shares of Roku by 1.3% during the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after acquiring an additional 159,785 shares in the last quarter. Holocene Advisors LP acquired a new stake in shares of Roku during the 3rd quarter worth about $129,015,000. Westfield Capital Management Co. LP raised its position in shares of Roku by 126.1% during the 3rd 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 in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its position in Roku by 3.2% during the third quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock worth $71,373,000 after buying an additional 30,038 shares during the period. Institutional investors and hedge funds 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.