Roku (NASDAQ:ROKU) Trading Up 2.1% – Should You Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) were up 2.1% during mid-day trading on Tuesday . The company traded as high as $70.60 and last traded at $70.46. Approximately 577,156 shares traded hands during trading, a decline of 85% from the average daily volume of 3,763,352 shares. The stock had previously closed at $69.01.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on ROKU shares. Loop Capital reduced their price objective on Roku from $90.00 to $80.00 and set a “hold” rating on the stock in a research report on Friday, May 2nd. Bank of America initiated coverage on Roku in a report on Thursday, March 27th. They issued a “buy” rating and a $100.00 target price for the company. Redburn Atlantic upgraded Roku from a “neutral” rating to a “buy” rating and set a $100.00 price objective for the company in a report on Monday, April 7th. Wedbush dropped their target price on Roku from $125.00 to $100.00 and set an “outperform” rating on the stock in a report on Monday, April 28th. Finally, Needham & Company LLC reissued a “buy” rating and set a $88.50 target price on shares of Roku in a research report on Monday, May 12th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have assigned a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $87.93.

Roku Trading Up 3.5%

The company has a fifty day simple moving average of $66.00 and a 200-day simple moving average of $74.48. The company has a market capitalization of $10.42 billion, a PE ratio of -80.28 and a beta of 2.06.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The company had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same quarter last year, the company posted ($0.35) EPS. The firm’s revenue was up 15.8% compared to the same quarter last year. On average, equities analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In other Roku news, insider Charles Collier sold 7,181 shares of the 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 of the company’s stock, valued at $577,485. This trade represents a 49.32% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of the business’s stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total transaction of $153,166.16. Following the sale, the chief accounting officer now directly owns 7,256 shares of the company’s stock, valued at approximately $583,092.16. This represents a 20.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 15,100 shares of company stock worth $1,164,215 over the last three months. 13.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. FMR LLC raised its holdings in shares of 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 period. Vanguard Group Inc. increased its holdings in shares of Roku by 2.1% during the 1st quarter. Vanguard Group Inc. now owns 12,503,595 shares of the company’s stock valued at $880,753,000 after acquiring an additional 254,504 shares during the last quarter. Marshall Wace LLP raised its position in shares of Roku by 663.9% in the fourth 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 period. T. Rowe Price Investment Management Inc. lifted its position in Roku by 10.5% during 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 acquiring an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Roku by 2.7% during the 4th 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.

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.