Roku (NASDAQ:ROKU) Stock Price Up 2.3% - Should You Buy?

Key Points

• Roku's stock price increased by 2.3% to $98.28 during mid-day trading, despite a significant decline in trading volume of 40% from average daily levels.
• Analyst ratings for Roku are mixed, with 17 "Buy" ratings, 7 "Hold" ratings, and 2 "Sell" ratings, resulting in an average target price of $101.33.
• Recent insider selling included a notable transaction where the CFO sold 3,000 shares at an average price of $95.82, reducing ownership by 3.60%.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) rose 2.3% during mid-day trading on Thursday . The company traded as high as $99.11 and last traded at $98.28. Approximately 2,258,953 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 3,788,340 shares. The stock had previously closed at $96.03.

Wall Street Analysts Forecast Growth

ROKU has been the topic of a number of recent analyst reports. KeyCorp boosted their price target 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. Weiss Ratings restated a "sell (d-)" rating on shares of Roku in a research report on Wednesday, October 8th. JMP Securities restated a "market outperform" rating and issued a $145.00 price target on shares of Roku in a research report on Thursday, October 2nd. Citigroup boosted their price target on shares of Roku from $85.00 to $100.00 and gave the stock a "neutral" rating in a research report on Thursday, September 18th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $110.00 target price on shares of Roku in a research report on Wednesday, October 1st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have given a Hold rating and two have assigned 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 Performance

The firm has a market cap of $14.48 billion, a P/E ratio of -234.00, a price-to-earnings-growth ratio of 11.50 and a beta of 2.13. The stock's 50 day simple moving average is $96.72 and its 200 day simple moving average is $83.18.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. During the same quarter in the prior year, the business posted ($0.18) EPS. The business'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. As a group, analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction dated Wednesday, October 15th. The shares were sold at an average price of $95.82, for a total transaction of $287,460.00. Following the completion of the transaction, the chief financial officer owned 80,420 shares in the company, valued at approximately $7,705,844.40. This represents a 3.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, 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 disclosure for this sale can be found here. Over the last 90 days, insiders have sold 328,331 shares of company stock worth $32,640,556. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

Several institutional investors have recently added to or reduced their stakes in ROKU. Tableaux LLC bought a new position in Roku during the second quarter valued at about $1,746,000. Acadian Asset Management LLC lifted its holdings in Roku by 456.7% during the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock valued at $134,222,000 after purchasing an additional 1,563,449 shares during the last quarter. Duquesne Family Office LLC lifted its holdings in Roku by 123.0% during the second 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 last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in Roku by 38,431.7% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company's stock valued at $34,470,000 after purchasing an additional 488,083 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings in Roku by 491.5% during the first quarter. AQR Capital Management LLC now owns 562,027 shares of the company's stock valued at $38,943,000 after purchasing an additional 467,005 shares during the last quarter. Institutional investors own 86.30% of the company's stock.

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.

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