Roku (NASDAQ:ROKU) Trading 2.4% Higher - Still a Buy?

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price traded up 2.4% on Tuesday . The stock traded as high as $71.47 and last traded at $70.40. 1,539,473 shares were traded during mid-day trading, a decline of 63% from the average session volume of 4,155,881 shares. The stock had previously closed at $68.78.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. JPMorgan Chase & Co. lowered their price objective on shares of Roku from $115.00 to $75.00 and set an "overweight" rating on the stock in a research note on Tuesday, April 22nd. Redburn Atlantic upgraded shares of Roku from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a research note on Monday, April 7th. Wells Fargo & Company decreased their target price on shares of Roku from $129.00 to $93.00 and set an "overweight" rating on the stock in a research note on Monday, April 28th. Pivotal Research decreased their target price on shares of Roku from $125.00 to $100.00 and set a "buy" rating on the stock in a research note on Friday, May 2nd. Finally, Benchmark restated a "buy" rating and set a $130.00 target price on shares of Roku in a research note on Friday, May 2nd. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $87.93.

Roku Stock Down 1.8%

The business's fifty day moving average is $65.91 and its two-hundred day moving average is $74.51. The stock has a market capitalization of $10.30 billion, a PE ratio of -79.29 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, beating analysts' consensus estimates of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same period last year, the firm posted ($0.35) earnings per share. Roku's revenue for the quarter was up 15.8% compared to the same quarter last year. Sell-side analysts expect that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $2,510,000.00. Following the completion of the sale, the chief executive officer now directly owns 26,538 shares of the company's stock, valued at $2,664,415.20. The trade was a 48.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Dan Jedda sold 5,000 shares of the business's stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $100.40, for a total transaction of $502,000.00. Following the completion of the sale, the chief financial officer now owns 58,555 shares of the company's stock, valued at approximately $5,878,922. This represents a 7.87% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 47,111 shares of company stock valued at $4,377,112. 13.98% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Roku

Several large investors have recently modified their holdings of ROKU. FMR LLC raised its holdings in shares of Roku by 31.7% in the 4th quarter. FMR LLC now owns 19,183,942 shares of the company's stock valued at $1,426,134,000 after purchasing an additional 4,613,570 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of Roku by 663.9% in the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock valued at $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. Cadian Capital Management LP purchased a new stake in Roku during the fourth quarter valued at approximately $87,632,000. Jacobs Levy Equity Management Inc. lifted its position in Roku by 505.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock valued at $96,402,000 after acquiring an additional 1,082,548 shares during the last quarter. Finally, Two Sigma Investments LP lifted its position in Roku by 149.8% during the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock valued at $90,017,000 after acquiring an additional 726,077 shares during the last quarter. Institutional investors own 86.30% of the company's stock.

Roku Company Profile

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.