Roku (NASDAQ:ROKU) Trading 2.9% Higher - Still a Buy?

Key Points

• Roku's stock price rose by 2.9%, reaching a high of $94.04 before closing at $92.77, though trading volume was down by 71% compared to the average.
• Analysts have varied opinions on Roku, with 18 buy ratings against one sell rating, and a consensus price target of $93.92.
• Roku reported a quarterly revenue of $1.02 billion, an increase of 15.8% year-over-year, while posting an earnings per share of ($0.19), beating estimates.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price traded up 2.9% during trading on Monday . The stock traded as high as $94.04 and last traded at $92.77. 1,135,050 shares changed hands during trading, a decline of 71% from the average session volume of 3,864,297 shares. The stock had previously closed at $90.12.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Pivotal Research lowered their target price on shares of Roku from $125.00 to $100.00 and set a "buy" rating for the company in a report on Friday, May 2nd. Guggenheim reiterated a "buy" rating and set a $100.00 price objective on shares of Roku in a report on Friday, May 2nd. Redburn Atlantic raised Roku from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a research report on Monday, April 7th. Piper Sandler lifted their price objective on shares of Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a report on Thursday, July 10th. Finally, UBS Group reduced their target price on shares of Roku from $90.00 to $72.00 and set a "neutral" rating for the company in a report on Tuesday, April 15th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, eighteen have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $93.92.

Roku Price Performance

The stock has a 50-day moving average of $81.78 and a 200 day moving average of $76.51. The company has a market cap of $13.67 billion, a P/E ratio of -128.29 and a beta of 2.12.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.08. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The firm had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same period last year, the company earned ($0.35) earnings per share. The business's quarterly revenue was up 15.8% on a year-over-year basis. Sell-side analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insider Transactions at Roku

In other Roku news, insider Charles Collier sold 212,559 shares of the stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $95.00, for a total value of $20,193,105.00. Following the transaction, the insider owned 200 shares in the company, valued at approximately $19,000. This represents a 99.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Mai Fyfield sold 914 shares of the business's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $78.50, for a total value of $71,749.00. Following the sale, the director owned 4,374 shares of the company's stock, valued at approximately $343,359. This represents a 17.28% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 309,079 shares of company stock valued at $28,091,399. 13.98% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Garde Capital Inc. bought a new position in Roku in the 1st quarter valued at about $25,000. Banque Transatlantique SA bought a new position in shares of Roku in the first quarter valued at approximately $28,000. Beaird Harris Wealth Management LLC purchased a new position in shares of Roku during the first quarter valued at approximately $30,000. Golden State Wealth Management LLC boosted its position in shares of Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after buying an additional 247 shares during the last quarter. Finally, Princeton Global Asset Management LLC bought a new stake in Roku during the first quarter worth $35,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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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