Roku (NASDAQ:ROKU) Stock Price Up 2.6% - Time to Buy?

Key Points

• Roku's stock rose by 2.6% during mid-day trading on Friday, reaching a last traded price of $101.78, up from a previous close of $99.16.
• Analysts have upgraded Roku's price targets significantly, with targets ranging from $100.00 to $120.00 and an overall consensus rating of "Moderate Buy."
• Insider trading activity includes significant sales, with a total of 417,025 shares sold in the last ninety days, representing a 13.98% insider ownership still remaining.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) rose 2.6% during mid-day trading on Friday . The stock traded as high as $101.94 and last traded at $101.78. Approximately 3,805,581 shares traded hands during trading, a decline of 3% from the average daily volume of 3,932,916 shares. The stock had previously closed at $99.16.

Analyst Upgrades and Downgrades

ROKU has been the subject of several analyst reports. Susquehanna upped their price target on shares of Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research report on Friday, August 1st. Needham & Company LLC upped 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. Citigroup upped their price target on shares of Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a research report on Thursday. Wedbush restated an "outperform" rating and set a $100.00 price target on shares of Roku in a research report on Monday, July 28th. Finally, Pivotal Research upped their price target on shares of Roku from $100.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Roku has an average rating of "Moderate Buy" and a consensus target price of $101.33.

Roku Stock Up 2.6%

The stock's fifty day moving average price is $91.74 and its two-hundred day moving average price is $78.89. The company has a market capitalization of $15.00 billion, a PE ratio of -242.33, a price-to-earnings-growth ratio of 13.77 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 earnings per share for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The company had revenue of $1.11 billion during the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period in the prior year, the business posted ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. On average, equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insiders Place Their Bets

In other Roku news, insider Charles Collier sold 10,269 shares of the firm's stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $99.14, for a total value of $1,018,068.66. Following the completion of the sale, the insider directly owned 200 shares in the company, valued at $19,828. This trade represents a 98.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Matthew C. Banks sold 2,180 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $97.85, for a total transaction of $213,313.00. Following the completion of the sale, the chief accounting officer owned 5,355 shares of the company's stock, valued at $523,986.75. This trade represents a 28.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 417,025 shares of company stock valued at $39,662,358 over the last ninety days. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in shares of 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 purchasing an additional 172,221 shares in the last quarter. Acadian Asset Management LLC increased its stake 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 valued at $236,545,000 after purchasing an additional 785,864 shares in the last quarter. Tableaux LLC bought a new position in shares of Roku during the second quarter valued at approximately $1,746,000. Jacobs Levy Equity Management Inc. increased its stake in shares of Roku by 21.9% during 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 purchasing an additional 284,323 shares in the last quarter. Finally, Duquesne Family Office LLC increased its stake in shares of 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 in the last quarter. 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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