Roku (NASDAQ:ROKU) Trading 1.3% Higher - Time to Buy?

Key Points

• Roku's stock price increased by 1.3% during trading, reaching a high of $99.36, and closing at $97.49.
• Several analysts have raised their price targets for Roku, with Bank of America setting a target of $110.00 and JPMorgan Chase increasing theirs to $105.00, reflecting a consensus rating of "Moderate Buy".
• Roku's quarterly earnings report showed an EPS of $0.07, exceeding expectations and indicating a 14.7% increase in revenue compared to the same quarter last year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price shot up 1.3% during trading on Tuesday . The company traded as high as $99.36 and last traded at $97.49. 2,162,324 shares changed hands during mid-day trading, a decline of 43% from the average session volume of 3,802,561 shares. The stock had previously closed at $96.28.

Analyst Ratings Changes

Several brokerages have commented on ROKU. Bank of America lifted their price target on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Wall Street Zen raised shares of Roku from a "hold" rating to a "buy" rating in a research report on Sunday. JPMorgan Chase & Co. increased their price target on shares of Roku from $100.00 to $105.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Piper Sandler boosted their price objective on shares of Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, July 10th. Finally, UBS Group upped their price objective 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. Two 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $101.33.

Roku Trading Up 1.3%

The business's fifty day moving average price is $96.30 and its 200 day moving average price is $82.99. The company has a market capitalization of $14.36 billion, a P/E ratio of -232.12, a P/E/G ratio of 11.11 and a beta of 2.13.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The firm had revenue of $1.11 billion during 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%. The company's revenue for the quarter was up 14.7% compared to the same quarter last year. During the same quarter last year, the company earned ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current year.

Insiders Place Their Bets

In other news, CAO Matthew C. Banks sold 2,180 shares of the business's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $97.85, for a total value of $213,313.00. Following the sale, the chief accounting officer owned 5,355 shares in the company, valued at approximately $523,986.75. The trade was a 28.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charles Collier sold 15,404 shares of the stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $103.31, for a total transaction of $1,591,387.24. Following the sale, the insider owned 200 shares of the company's stock, valued at $20,662. This trade represents a 98.72% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 328,331 shares of company stock worth $32,640,556 over the last quarter. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Berkshire Capital Holdings Inc. raised its stake in shares of Roku by 1,413,400.0% during the first quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock worth $9,957,000 after buying an additional 141,340 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Roku during the 1st quarter valued at $6,026,000. Atika Capital Management LLC bought a new stake in shares of Roku during the 1st quarter valued at $5,086,000. Lecap Asset Management Ltd. acquired a new position in shares of Roku in the 1st quarter valued at $511,000. Finally, West Tower Group LLC boosted its position in shares of Roku by 128.6% in the 2nd quarter. West Tower Group LLC now owns 8,000 shares of the company's stock worth $703,000 after purchasing an additional 4,500 shares during the last quarter. 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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