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

Key Points

• Roku's stock price increased by 1.6% to $99.60, with trading volume significantly below its average.
• Analysts have provided positive ratings for Roku, with several firms raising their price targets, indicating a consensus rating of "Moderate Buy" with an average target price of $101.33.
• Roku recently reported a quarterly earnings per share of $0.07, beating estimates and showing a 14.7% increase in revenue year-over-year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares rose 1.6% on Friday . The company traded as high as $99.74 and last traded at $99.60. Approximately 2,269,421 shares changed hands during mid-day trading, a decline of 42% from the average daily volume of 3,900,383 shares. The stock had previously closed at $98.01.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ROKU. Needham & Company LLC boosted their price objective on shares of Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Wells Fargo & Company boosted their price objective on shares of Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $80.00 to $100.00 in a research report on Tuesday, June 17th. KeyCorp boosted their price objective on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Wall Street Zen raised shares of Roku from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Roku currently has an average rating of "Moderate Buy" and an average target price of $101.33.

Roku Stock Up 1.6%

The company's 50 day moving average is $92.66 and its 200 day moving average is $79.61. The firm has a market capitalization of $14.67 billion, a price-to-earnings ratio of -237.14, a P/E/G ratio of 13.75 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, beating the consensus estimate of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The business had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.07 billion. During the same period in the prior year, the company posted ($0.18) earnings per share. Roku's revenue was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts expect that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, insider Mustafa Ozgen sold 50,527 shares of the stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total transaction of $5,052,700.00. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 3,360 shares of the stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $85.05, for a total transaction of $285,768.00. Following the sale, the chief accounting officer owned 5,195 shares in the company, valued at $441,834.75. The trade was a 39.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 417,025 shares of company stock valued at $39,662,358. 13.98% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ROKU. Garde Capital Inc. bought a new position in Roku in the 1st quarter valued at approximately $25,000. Banque Transatlantique SA bought a new position in Roku in the 1st quarter valued at approximately $28,000. Beaird Harris Wealth Management LLC bought a new position in Roku in the 1st quarter valued at approximately $30,000. Golden State Wealth Management LLC raised its holdings in Roku by 125.4% in the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after buying an additional 247 shares during the last quarter. Finally, Princeton Global Asset Management LLC bought a new position in Roku in the 1st quarter valued at approximately $35,000. 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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