Roku (NASDAQ:ROKU) Shares Up 1.4% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price rose 1.4% during mid-day trading on Friday . The stock traded as high as $69.92 and last traded at $68.57. Approximately 596,363 shares were traded during trading, a decline of 84% from the average daily volume of 3,719,934 shares. The stock had previously closed at $67.63.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of recent analyst reports. Wells Fargo & Company raised Roku from an “equal weight” rating to an “overweight” rating and upped their price target for the company from $74.00 to $129.00 in a research note on Friday, February 14th. JPMorgan Chase & Co. increased their target price on shares of Roku from $92.00 to $115.00 and gave the stock an “overweight” rating in a report on Friday, February 14th. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and boosted their price target for the company from $65.00 to $125.00 in a report on Friday, February 14th. Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price objective on shares of Roku in a research note on Tuesday, January 7th. Finally, Jefferies Financial Group raised Roku from an “underperform” rating to a “hold” rating and boosted their target price for the company from $55.00 to $100.00 in a research note on Thursday, February 20th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have issued a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, Roku presently has a consensus rating of “Moderate Buy” and an average price target of $96.71.

Roku Stock Performance

The company has a fifty day moving average price of $81.92 and a two-hundred day moving average price of $77.01. The company has a market cap of $9.89 billion, a P/E ratio of -76.05 and a beta of 2.12.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share 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. Research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the transaction, the chief financial officer now directly owns 64,555 shares of the company’s stock, valued at approximately $5,340,635.15. The trade was a 1.53 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of the firm’s stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total value of $153,166.16. Following the sale, the chief accounting officer now directly owns 7,256 shares of the company’s stock, valued at $583,092.16. This represents a 20.80 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 93,308 shares of company stock valued at $8,296,166. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several large investors have recently modified their holdings of ROKU. FMR LLC grew its stake in 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 buying an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Roku by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock valued at $910,597,000 after acquiring an additional 185,676 shares in the last quarter. Marshall Wace LLP increased 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 worth $173,644,000 after acquiring an additional 2,030,036 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings 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 valued at $168,734,000 after purchasing an additional 215,841 shares during the period. Finally, Geode Capital Management LLC increased its holdings in shares of Roku by 2.7% during 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 period. 86.30% of the stock is owned by 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.