Roku (NASDAQ:ROKU) Trading Up 4.8% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shares were up 4.8% on Monday . The stock traded as high as $62.49 and last traded at $57.92. Approximately 2,674,237 shares traded hands during trading, a decline of 28% from the average daily volume of 3,729,429 shares. The stock had previously closed at $55.28.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $65.00 to $125.00 in a research report on Friday, February 14th. Benchmark lifted their price target on shares of Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a report on Friday, February 14th. JMP Securities upped their price objective on Roku from $95.00 to $115.00 and gave the company a “market outperform” rating in a research note on Friday, February 14th. UBS Group raised Roku from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 27th. Finally, Citizens Jmp raised Roku to a “strong-buy” rating in a research report on Tuesday, January 21st. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, eighteen have given a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.70.

Roku Price Performance

The stock has a market cap of $8.34 billion, a P/E ratio of -64.19 and a beta of 2.17. The firm’s fifty day moving average price is $79.19 and its two-hundred day moving average price is $77.25.

Roku (NASDAQ:ROKU) last issued 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 firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. On average, research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Roku news, CFO Dan Jedda sold 5,000 shares of the firm’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $100.40, for a total transaction of $502,000.00. Following the sale, the chief financial officer now owns 58,555 shares in the company, valued at $5,878,922. This trade represents a 7.87 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 4,600 shares of the company’s stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the transaction, the chief executive officer now owns 6,243 shares of the company’s stock, valued at $468,225. The trade was a 42.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 97,905 shares of company stock valued at $8,632,306 in the last quarter. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

A number of hedge funds have recently bought and sold shares of the company. FMR LLC grew its position in Roku by 31.7% during the fourth 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. boosted its stake in shares of Roku by 1.5% in the 4th quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock valued at $910,597,000 after purchasing an additional 185,676 shares in the last quarter. Marshall Wace LLP grew its holdings in shares of Roku by 663.9% during 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 during the last quarter. T. Rowe Price Investment Management Inc. raised its position in Roku by 10.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock worth $168,734,000 after purchasing an additional 215,841 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock worth $159,353,000 after purchasing an additional 56,820 shares during the last quarter. 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.