Roku (NASDAQ:ROKU) Trading Up 1.5% - Still a Buy?

Key Points

• Roku's stock increased by 1.5% on Tuesday, with a last trading price of $95.45 and a volume significantly below its average, at just 623,054 shares.
• Analysts provided mixed ratings, with Evercore ISI reducing their price target from $105 to $80, while Bank of America raised theirs from $100 to $110, maintaining a "buy" rating.
• The company reported $1.11 billion in revenue for the last quarter, exceeding expectations, with an earnings per share (EPS) of $0.07, compared to a loss of $(0.18) in the previous year.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) were up 1.5% on Tuesday . The company traded as high as $95.66 and last traded at $95.45. Approximately 623,054 shares were traded during trading, a decline of 84% from the average daily volume of 3,982,589 shares. The stock had previously closed at $93.99.

Analyst Upgrades and Downgrades

ROKU has been the topic of a number of recent research reports. Evercore ISI decreased their price objective on Roku from $105.00 to $80.00 and set an "in-line" rating on the stock in a research report on Friday, May 2nd. KeyCorp raised their price target on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Rosenblatt Securities lifted 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. Bank of America lifted their price target on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Finally, Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Roku presently has a consensus rating of "Moderate Buy" and an average target price of $98.96.

Roku Stock Up 1.4%

The firm has a market cap of $14.04 billion, a P/E ratio of -227.12, a PEG ratio of 13.19 and a beta of 2.05. The business has a fifty day moving average of $87.69 and a 200 day moving average of $77.72.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The company had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the previous year, the company posted ($0.18) earnings per share. The business's revenue was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts expect that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling

In other news, CAO Matthew C. Banks sold 3,360 shares of the company's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $85.05, for a total transaction of $285,768.00. Following the completion of the transaction, the chief accounting officer directly owned 5,195 shares in the company, valued at approximately $441,834.75. This represents a 39.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Dan Jedda sold 3,000 shares of the company's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $89.07, for a total transaction of $267,210.00. Following the transaction, the chief financial officer owned 73,132 shares of the company's stock, valued at $6,513,867.24. This trade represents a 3.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 350,502 shares of company stock valued at $31,665,946. 13.98% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Marex Group plc acquired a new position in shares of Roku during the second quarter worth $2,538,000. Advisory Services Network LLC increased its holdings in shares of Roku by 5.5% during the second quarter. Advisory Services Network LLC now owns 22,146 shares of the company's stock worth $2,085,000 after buying an additional 1,162 shares in the last quarter. State of Wyoming increased its holdings in shares of Roku by 353.3% during the second quarter. State of Wyoming now owns 10,448 shares of the company's stock worth $918,000 after buying an additional 8,143 shares in the last quarter. Hudson Bay Capital Management LP increased its holdings in shares of Roku by 1,417.2% during the second quarter. Hudson Bay Capital Management LP now owns 384,000 shares of the company's stock worth $33,750,000 after buying an additional 358,690 shares in the last quarter. Finally, Geneos Wealth Management Inc. increased its holdings in Roku by 1,354.4% in the second quarter. Geneos Wealth Management Inc. now owns 2,138 shares of the company's stock valued at $188,000 after purchasing an additional 1,991 shares during the period. 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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