Roku (NASDAQ:ROKU) Shares Up 1.7% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU) rose 1.7% during trading on Wednesday . The stock traded as high as $72.68 and last traded at $70.82. Approximately 764,664 shares changed hands during trading, a decline of 79% from the average daily volume of 3,730,038 shares. The stock had previously closed at $69.64.

Analyst Ratings Changes

ROKU has been the subject of a number of analyst reports. Jefferies Financial Group raised shares of Roku from an “underperform” rating to a “hold” rating and upped their price objective for the company from $55.00 to $100.00 in a report on Thursday, February 20th. Pivotal Research upgraded shares of Roku from a “hold” rating to a “buy” rating and raised their price target for the stock from $65.00 to $125.00 in a report on Friday, February 14th. Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a report on Monday, November 18th. Bank of America raised their target price on Roku from $90.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, February 14th. Finally, Loop Capital upped their price target on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research note on Monday, December 9th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have given a buy rating and two have given a strong buy rating to the company’s stock. Based on data from MarketBeat, Roku has an average rating of “Moderate Buy” and an average price target of $96.71.

Roku Price Performance

The firm has a market capitalization of $10.42 billion, a price-to-earnings ratio of -80.27 and a beta of 2.12. The firm has a 50 day moving average price of $82.12 and a 200-day moving average price of $77.12.

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

Insider Buying and Selling

In related news, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total value of $77,180.00. Following the completion of the sale, the chief financial officer now directly owns 63,555 shares of the company’s stock, valued at $4,905,174.90. The trade was a 1.55 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charles Collier sold 7,181 shares of the firm’s stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $78.25, for a total transaction of $561,913.25. Following the transaction, the insider now owns 7,380 shares in the company, valued at approximately $577,485. This trade represents a 49.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 93,308 shares of company stock worth $8,296,166. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. FMR LLC raised its stake in shares of Roku by 31.7% during the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock worth $1,426,134,000 after buying an additional 4,613,570 shares in the last quarter. Marshall Wace LLP increased its holdings in shares of Roku by 663.9% in the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. Holocene Advisors LP acquired a new stake in shares of Roku in the third quarter valued at about $129,015,000. Cadian Capital Management LP acquired a new stake in shares of Roku in the fourth quarter valued at about $87,632,000. Finally, Jacobs Levy Equity Management Inc. boosted its holdings in Roku by 505.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock worth $96,402,000 after buying an additional 1,082,548 shares in the last quarter. 86.30% of the stock is currently 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.