Roku (NASDAQ:ROKU) Stock Price Up 1.7% - Should You Buy?

Key Points

• Roku's stock price increased by 1.7% during mid-day trading, reaching a last traded price of $97.50, although trading volume was down significantly by 78% compared to its average.
• Analysts have raised their price targets for Roku, with Needham & Company setting a target of $110.00 and Wells Fargo at $113.00, reflecting positive sentiment with a consensus rating of "Moderate Buy".
• Roku reported an earnings surprise, with an EPS of $0.07 for the last quarter, beating expectations, and showing a revenue increase of 14.7% year-over-year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price rose 1.7% during mid-day trading on Wednesday . The company traded as high as $98.35 and last traded at $97.50. Approximately 847,844 shares changed hands during trading, a decline of 78% from the average daily volume of 3,937,621 shares. The stock had previously closed at $95.86.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Needham & Company LLC boosted their price target on shares of Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research report on Friday, August 1st. UBS Group boosted their price target on shares of Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Wells Fargo & Company boosted their price target on shares of Roku from $100.00 to $113.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Citigroup reissued an "outperform" rating on shares of Roku in a research report on Monday, August 25th. Finally, KeyCorp boosted their price target on shares of Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $98.96.

Roku Stock Up 2.9%

The stock's 50-day simple moving average is $89.47 and its 200 day simple moving average is $78.15. The company has a market cap of $14.53 billion, a price-to-earnings ratio of -234.50, a PEG ratio of 13.52 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. The company had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.07 billion. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. Roku's revenue for the quarter 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, sell-side analysts expect that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In related news, CAO Matthew C. Banks sold 3,360 shares of the company's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $85.05, for a total transaction of $285,768.00. Following the sale, the chief accounting officer directly owned 5,195 shares in the company, valued at approximately $441,834.75. This represents a 39.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charles Collier sold 10,269 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $95.00, for a total transaction of $975,555.00. Following the sale, the insider owned 200 shares in the company, valued at $19,000. The trade was a 98.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 324,873 shares of company stock worth $29,745,042 over the last ninety days. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in shares of Roku by 1.4% in the second quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company's stock valued at $1,114,077,000 after acquiring an additional 172,221 shares during the period. Acadian Asset Management LLC boosted its holdings in shares of Roku by 41.2% in the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company's stock valued at $236,545,000 after acquiring an additional 785,864 shares during the period. Tableaux LLC acquired a new stake in shares of Roku in the second quarter valued at approximately $1,746,000. Jacobs Levy Equity Management Inc. boosted its holdings in shares of Roku by 21.9% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company's stock valued at $111,372,000 after acquiring an additional 284,323 shares during the period. Finally, Two Sigma Investments LP boosted its holdings in shares of Roku by 149.8% in the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock valued at $90,017,000 after acquiring an additional 726,077 shares during the period. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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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