Roku (NASDAQ:ROKU) Shares Up 0.8% - Should You Buy?

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price shot up 0.8% during trading on Wednesday . The company traded as high as $84.84 and last traded at $83.43. 957,885 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 2,859,426 shares. The stock had previously closed at $82.75.

Analysts Set New Price Targets

A number of brokerages recently commented on ROKU. Morgan Stanley raised their target price on Roku from $60.00 to $65.00 and gave the stock an "underweight" rating in a report on Tuesday, October 29th. Baird R W upgraded Roku from a "hold" rating to a "strong-buy" rating in a research report on Monday, November 18th. Jefferies Financial Group cut their price objective on Roku from $60.00 to $55.00 and set an "underperform" rating for the company in a research report on Friday, November 1st. Bank of America lifted their price target on Roku from $90.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Benchmark lifted their price target on Roku from $100.00 to $130.00 and gave the stock a "buy" rating in a research report on Friday. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $92.62.

Roku Price Performance

The business has a fifty day simple moving average of $80.86 and a two-hundred day simple moving average of $74.18. The company has a market cap of $14.38 billion, a PE ratio of -82.56 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.44) by $0.20. The business had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. On average, equities research analysts predict that Roku, Inc. will post -1.09 EPS for the current year.

Insider Activity at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $82.73, for a total transaction of $82,730.00. Following the sale, the chief financial officer now directly owns 64,555 shares of the company's stock, valued at $5,340,635.15. This represents a 1.53 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,333,486.34. This represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 78,421 shares of company stock valued at $6,523,886 in the last ninety days. Company insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Cornerstone Wealth Management LLC acquired a new stake in Roku in the 3rd quarter valued at about $212,000. Blue Trust Inc. increased its holdings in Roku by 227.7% in the 3rd quarter. Blue Trust Inc. now owns 8,494 shares of the company's stock valued at $634,000 after purchasing an additional 5,902 shares during the last quarter. Allspring Global Investments Holdings LLC increased its holdings in Roku by 11.2% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 2,207 shares of the company's stock valued at $165,000 after purchasing an additional 222 shares during the last quarter. Kessler Investment Group LLC increased its holdings in Roku by 21.8% in the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company's stock valued at $5,672,000 after purchasing an additional 13,590 shares during the last quarter. Finally, Sequoia Financial Advisors LLC boosted its position in Roku by 4.5% in the 3rd quarter. Sequoia Financial Advisors LLC now owns 4,721 shares of the company's stock valued at $352,000 after buying an additional 202 shares during the period. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.