Roku (NASDAQ:ROKU) Trading 2% Higher - Time to Buy?

Key Points

• Roku shares increased by 2% recently, closing at $93.83 after trading as high as $95.42, with a total of 1,861,385 shares exchanged, which is 52% lower than the average volume.
• Multiple analysts have issued optimistic forecasts for Roku, with price targets ranging from $100 to $110, resulting in an average rating of "Moderate Buy" across various research firms.
• Roku reported a positive earnings surprise, with EPS of $0.07 for the last quarter, surpassing estimates and marking a 14.7% revenue increase compared to the previous year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares shot up 2% on Monday . The company traded as high as $95.42 and last traded at $93.83. 1,861,385 shares changed hands during trading, a decline of 52% from the average session volume of 3,852,616 shares. The stock had previously closed at $92.02.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ROKU. Bank of America lifted their price target on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a report on Thursday, July 3rd. Citigroup lifted their price target on Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a report on Thursday, September 18th. Needham & Company LLC reaffirmed a "buy" rating and set a $110.00 price target on shares of Roku in a report on Wednesday, October 1st. Wedbush reaffirmed an "outperform" rating and set a $100.00 price target on shares of Roku in a report on Monday, July 28th. Finally, Rosenblatt Securities boosted their target price on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a 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 given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Stock Up 2.0%

The company has a 50 day moving average of $94.90 and a two-hundred day moving average of $81.79. The firm has a market cap of $13.82 billion, a P/E ratio of -223.40, a PEG ratio of 12.88 and a beta of 2.13.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly 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. The firm had revenue of $1.11 billion for 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%. The firm's quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Roku news, insider Mustafa Ozgen sold 50,527 shares of Roku stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total value of $5,052,700.00. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Charles Collier sold 212,559 shares of Roku stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the completion of the transaction, the insider owned 200 shares in the company, valued at approximately $19,000. This trade represents a 99.91% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 518,890 shares of company stock worth $50,737,151. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Berkshire Capital Holdings Inc. grew its position in Roku by 1,413,400.0% during the 1st quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock worth $9,957,000 after purchasing an additional 141,340 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Roku during the 1st quarter worth approximately $6,026,000. Atika Capital Management LLC purchased a new position in Roku during the 1st quarter worth approximately $5,086,000. Lecap Asset Management Ltd. purchased a new position in Roku during the 1st quarter worth approximately $511,000. Finally, Blair William & Co. IL grew its position in Roku by 14.7% during the 1st quarter. Blair William & Co. IL now owns 45,727 shares of the company's stock worth $3,221,000 after purchasing an additional 5,869 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.