Roku (NASDAQ:ROKU) Trading 2.5% Higher – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price rose 2.5% on Monday . The stock traded as high as $81.57 and last traded at $80.21. Approximately 1,383,796 shares traded hands during mid-day trading, a decline of 62% from the average daily volume of 3,682,403 shares. The stock had previously closed at $78.29.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on ROKU shares. Loop Capital increased their price objective on Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a report on Monday, December 9th. Benchmark boosted their price target on Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a research report on Friday, February 14th. Wedbush restated an “outperform” rating and issued a $100.00 target price on shares of Roku in a report on Monday, February 10th. Needham & Company LLC reaffirmed a “buy” rating and issued a $120.00 price target on shares of Roku in a research report on Monday. Finally, JPMorgan Chase & Co. upped their target price on shares of Roku from $92.00 to $115.00 and gave the company an “overweight” rating in a research note on Friday, February 14th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $97.67.

Roku Price Performance

The stock has a market capitalization of $11.87 billion, a P/E ratio of -91.29 and a beta of 2.12. The company’s 50-day simple moving average is $80.89 and its 200-day simple moving average is $77.32.

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

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $2,510,000.00. Following the sale, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,664,415.20. The trade was a 48.51 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction dated 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 owns 63,555 shares of the company’s stock, valued at $4,905,174.90. The trade was a 1.55 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 97,908 shares of company stock valued at $8,633,436. Corporate insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several institutional investors have recently made changes to their positions in the stock. FMR LLC lifted its stake in shares of Roku by 31.7% in the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. raised its holdings in Roku by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock worth $910,597,000 after purchasing an additional 185,676 shares in the last quarter. Marshall Wace LLP lifted its position in Roku by 663.9% during the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after buying an additional 2,030,036 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in shares of Roku by 10.5% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock valued at $168,734,000 after buying an additional 215,841 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock worth $159,353,000 after acquiring an additional 56,820 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.