Roku (NASDAQ:ROKU) Trading 1.2% Higher - Should You Buy?

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) rose 1.2% during mid-day trading on Tuesday . The stock traded as high as $81.99 and last traded at $81.16. Approximately 464,382 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 2,764,608 shares. The stock had previously closed at $80.21.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on ROKU. Citizens Jmp upgraded Roku to a "strong-buy" rating in a report on Tuesday, January 21st. Wells Fargo & Company lifted their target price on Roku from $72.00 to $74.00 and gave the stock an "equal weight" rating in a report on Thursday, October 31st. Rosenblatt Securities increased their price target on Roku from $61.00 to $86.00 and gave the stock a "neutral" rating in a report on Thursday, October 31st. Wedbush reiterated an "outperform" rating and issued a $100.00 price objective on shares of Roku in a research note on Wednesday, January 8th. Finally, Needham & Company LLC reissued a "buy" rating and set a $100.00 target price on shares of Roku in a research note on Tuesday, January 7th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, Roku has an average rating of "Moderate Buy" and a consensus price target of $83.18.

Roku Stock Performance

The stock has a market cap of $12.02 billion, a PE ratio of -68.97 and a beta of 2.05. The business has a 50 day moving average price of $78.48 and a two-hundred day moving average price of $72.02.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.35) by $0.29. The business had revenue of $1.06 billion for the quarter, compared to analysts' expectations of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business's revenue was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($2.33) earnings per share. As a group, research analysts anticipate that Roku, Inc. will post -1.09 earnings per share for the current 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 transaction of $2,066,000.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares of the company's stock, valued at approximately $2,193,100.32. This represents a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charles Collier sold 10,771 shares of the business's stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the sale, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. The trade was a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 72,885 shares of company stock valued at $5,712,912. 13.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Global Retirement Partners LLC lifted its position in shares of Roku by 591.9% during the fourth quarter. Global Retirement Partners LLC now owns 2,311 shares of the company's stock worth $172,000 after acquiring an additional 1,977 shares in the last quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors bought a new position in Roku in the 4th quarter worth about $233,000. Kestra Investment Management LLC increased its position in shares of Roku by 57.1% during the fourth quarter. Kestra Investment Management LLC now owns 6,928 shares of the company's stock valued at $515,000 after buying an additional 2,517 shares during the period. Venturi Wealth Management LLC lifted its holdings in shares of Roku by 41.0% in the fourth quarter. Venturi Wealth Management LLC now owns 1,397 shares of the company's stock worth $104,000 after buying an additional 406 shares in the last quarter. Finally, CIBC Asset Management Inc boosted its position in shares of Roku by 5.2% in the fourth quarter. CIBC Asset Management Inc now owns 3,859 shares of the company's stock valued at $287,000 after acquiring an additional 191 shares during the period. 86.30% of the stock is currently owned by 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.