Roku (NASDAQ:ROKU) Stock Price Up 1.6% – Time to Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 1.6% during trading on Monday . The company traded as high as $157.83 and last traded at $157.45. 1,579,584 shares changed hands during mid-day trading, a decline of 55% from the average session volume of 3,500,231 shares. The stock had previously closed at $154.93.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ROKU. Zacks Research upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. UBS Group upped their target price on Roku from $126.00 to $172.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Guggenheim downgraded Roku from a “buy” rating to a “neutral” rating and lifted their price target for the company from $145.00 to $160.00 in a research report on Friday, August 7th. JPMorgan Chase & Co. started coverage on shares of Roku in a research report on Monday, August 24th. They set a “neutral” rating and a $160.00 target price for the company. Finally, Morgan Stanley increased their price target on shares of Roku from $150.00 to $170.00 and gave the stock an “overweight” rating in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $156.17.

Roku Price Performance

The firm’s 50 day simple moving average is $150.64 and its two-hundred day simple moving average is $128.22. The firm has a market capitalization of $23.25 billion, a P/E ratio of 66.93 and a beta of 2.05.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The firm had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter last year, the business earned $0.07 earnings per share. The business’s revenue was up 21.9% on a year-over-year basis. As a group, equities research analysts forecast that Roku, Inc. will post 2.85 EPS for the current year.

Insiders Place Their Bets

In other news, insider Mustafa Ozgen sold 3,410 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $530,732.40. Following the sale, the insider directly owned 25,569 shares of the company’s stock, valued at approximately $3,979,559.16. This represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Christopher T. Handman sold 2,999 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $466,764.36. Following the completion of the transaction, the senior vice president owned 8,997 shares in the company, valued at approximately $1,400,293.08. The trade was a 25.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 105,285 shares of company stock valued at $15,841,744 in the last 90 days. Corporate insiders own 13.45% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC increased its stake in shares of Roku by 7.3% in the 4th quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock worth $267,389,000 after purchasing an additional 168,214 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Roku by 229.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after purchasing an additional 1,419,772 shares in the last quarter. Renaissance Technologies LLC grew its holdings in Roku by 22.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company’s stock valued at $148,090,000 after buying an additional 290,200 shares in the last quarter. Fred Alger Management LLC lifted its holdings in shares of Roku by 7,087.7% in the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after buying an additional 1,401,664 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its stake in Roku by 24.7% during the first quarter. Assenagon Asset Management S.A. now owns 1,162,051 shares of the company’s stock valued at $109,953,000 after acquiring an additional 230,398 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. Its Roku operating system powers streaming players, Roku-branded televisions and smart-TV products made by licensing partners. The platform provides access to streaming services, live television, movies, music and other applications.

The company also operates The Roku Channel, its own ad-supported streaming service offering licensed and original content, including movies, television programs, live channels and premium subscription options.