Roku (NASDAQ:ROKU) Shares Up 1.7% - Still a Buy?

Key Points

• Roku's stock price increased by 1.7% during mid-day trading, closing at $83.42 after reaching a peak of $84.34, significantly lower than its average trading volume.
• Multiple analysts have raised their price targets for Roku, with a consensus rating of "Moderate Buy" and an average target price of $98.96, indicating positive sentiment in the market.
• Insiders recently sold a significant number of shares, totaling over $28 million in sales, while institutional investors have increased their stakes in Roku, with 86.30% of stocks now owned by institutions.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price shot up 1.7% during mid-day trading on Tuesday . The company traded as high as $84.34 and last traded at $83.42. 685,305 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 4,009,598 shares. The stock had previously closed at $81.99.

Analysts Set New Price Targets

A number of research firms recently issued reports on ROKU. Guggenheim lifted their target price on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, August 1st. KeyCorp lifted their target price on Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Pivotal Research boosted their price target on Roku from $100.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Evercore ISI lowered their price target on Roku from $105.00 to $80.00 and set an "in-line" rating on the stock in a research report on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have issued a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $98.96.

Roku Trading Up 2.5%

The firm has a market capitalization of $12.39 billion, a P/E ratio of -200.29, a price-to-earnings-growth ratio of 11.65 and a beta of 2.05. The business has a 50-day moving average of $85.18 and a 200 day moving average of $77.17.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. The business had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%. The company's quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.18) EPS. As a group, research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling

In other Roku news, insider Charles Collier sold 212,559 shares of the business's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the sale, the insider owned 200 shares of the company's stock, valued at $19,000. The trade was a 99.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Mai Fyfield sold 914 shares of the business's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $78.50, for a total transaction of $71,749.00. Following the sale, the director directly owned 4,374 shares in the company, valued at $343,359. The trade was a 17.28% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 312,233 shares of company stock worth $28,362,681 in the last three months. Insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in Roku by 1.4% during the second quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company's stock valued at $1,114,077,000 after buying an additional 172,221 shares during the period. Acadian Asset Management LLC boosted its holdings in shares of Roku by 41.2% during the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company's stock worth $236,545,000 after purchasing an additional 785,864 shares during the period. Marshall Wace LLP boosted its holdings in shares of 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 purchasing an additional 2,030,036 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in shares of Roku by 10.5% during the fourth 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, Tableaux LLC purchased a new stake in shares of Roku during the second quarter worth about $1,746,000. 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.

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