Roku (NASDAQ:ROKU) Shares Gap Up - Still a Buy?

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $74.41, but opened at $81.32. Roku shares last traded at $82.15, with a volume of 2,915,999 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on ROKU shares. Wells Fargo & Company lowered their target price on Roku from $129.00 to $93.00 and set an "overweight" rating on the stock in a report on Monday, April 28th. Jefferies Financial Group raised Roku from an "underperform" rating to a "hold" rating and raised their price objective for the company from $55.00 to $100.00 in a research report on Thursday, February 20th. FBN Securities assumed coverage on Roku in a research report on Friday, March 28th. They set an "outperform" rating and a $93.00 target price on the stock. Rosenblatt Securities decreased their price target on Roku from $100.00 to $75.00 and set a "neutral" rating for the company in a research note on Friday, May 2nd. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $88.50 price target on shares of Roku in a research note on Monday, May 12th. One analyst has rated the stock with a sell rating, eight have given a hold rating, fifteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $88.37.

Roku Stock Up 10.4%

The stock has a market capitalization of $11.99 billion, a price-to-earnings ratio of -92.33 and a beta of 2.09. The business has a 50-day simple moving average of $67.99 and a two-hundred day simple moving average of $74.97.

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

Insider Buying and Selling at Roku

In other news, CEO Anthony J. Wood sold 4,600 shares of the company's stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $345,000.00. Following the transaction, the chief executive officer now directly owns 6,243 shares of the company's stock, valued at approximately $468,225. This represents a 42.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 1,000 shares of the company's stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the sale, the chief financial officer now owns 68,843 shares of the company's stock, valued at $5,163,225. This trade represents a 1.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 64,737 shares of company stock valued at $4,987,114 in the last three months. 13.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently bought and sold shares of the company. Anderson Financial Strategies LLC bought a new stake in Roku during the first quarter valued at about $68,000. Strs Ohio bought a new stake in shares of Roku in the first quarter valued at about $3,984,000. Acadian Asset Management LLC lifted its stake in shares of Roku by 456.7% in the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock valued at $134,222,000 after buying an additional 1,563,449 shares during the period. Focus Partners Wealth bought a new stake in shares of Roku in the first quarter valued at about $229,000. Finally, Plato Investment Management Ltd lifted its stake in shares of Roku by 217.4% in the first quarter. Plato Investment Management Ltd now owns 9,663 shares of the company's stock valued at $688,000 after buying an additional 6,619 shares during the period. 86.30% of the stock is currently 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.