Roku (NASDAQ:ROKU) Shares Up 4.4% - Should You Buy?

Key Points

• Roku's stock price rose by 4.4% on Wednesday, closing at $98.58 after trading as high as $98.95, despite a decline in session volume by 34% compared to its average.
• Analysts generally view Roku positively, with multiple firms raising their price targets; the average target is now $101.33, reflecting a consensus rating of "Moderate Buy."
• Insider selling activity includes significant sales by executives, with insiders offloading over 537,000 shares in the last 90 days, marking a notable decrease in their positions.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) traded up 4.4% on Wednesday . The stock traded as high as $98.95 and last traded at $98.58. 2,526,174 shares were traded during trading, a decline of 34% from the average session volume of 3,836,019 shares. The stock had previously closed at $94.40.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Pivotal Research boosted their target price on shares of Roku from $100.00 to $120.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Guggenheim boosted their price target on shares of Roku from $100.00 to $105.00 and gave the company a "buy" rating in a report on Friday, August 1st. Weiss Ratings reissued a "sell (d-)" rating on shares of Roku in a report on Wednesday, October 8th. Piper Sandler boosted their price target on shares of Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a report on Thursday, July 10th. Finally, Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and boosted their price target for the company from $80.00 to $100.00 in a report on Tuesday, June 17th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Price Performance

The firm has a market cap of $14.52 billion, a price-to-earnings ratio of -234.71, a P/E/G ratio of 11.06 and a beta of 2.13. The firm's fifty day moving average is $95.27 and its two-hundred day moving average is $82.02.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, topping the consensus estimate 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 net margin of 1.40% and a negative return on equity of 2.44%. The company's quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, equities analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roku news, insider Charles Collier sold 15,404 shares of the company's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $103.31, for a total value of $1,591,387.24. Following the completion of the sale, the insider directly owned 200 shares of the company's stock, valued at approximately $20,662. This represents a 98.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $94.01, for a total transaction of $2,350,250.00. The disclosure for this sale can be found here. Insiders sold 537,890 shares of company stock worth $52,546,201 in the last ninety days. Insiders own 13.98% of the company's stock.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. Vanguard Group Inc. raised its holdings in Roku by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company's stock worth $1,114,077,000 after buying an additional 172,221 shares during the period. Acadian Asset Management LLC increased its holdings in shares of Roku by 41.2% in the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company's stock valued at $236,545,000 after purchasing an additional 785,864 shares during the period. Tableaux LLC acquired a new position in shares of Roku in the 2nd quarter valued at about $1,746,000. Jacobs Levy Equity Management Inc. increased its holdings in shares of Roku by 21.9% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company's stock valued at $111,372,000 after purchasing an additional 284,323 shares during the period. Finally, Duquesne Family Office LLC increased its holdings in shares of Roku by 123.0% in the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock valued at $96,723,000 after purchasing an additional 606,900 shares during the period. 86.30% of the stock is owned by institutional investors and hedge funds.

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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