Roku (NASDAQ:ROKU) Trading Up 2.6% - Time to Buy?

Key Points

• Roku's stock saw a 2.6% increase during mid-day trading, with shares reaching $86.64, although trading volume was significantly lower than average.
• Analysts have a positive outlook on Roku, with several upgrades and a current average price target of $98.96, indicating a general consensus around a "Moderate Buy" rating.
• Insider trading activity includes significant share sales, with one CFO selling 3,000 shares at $90.20 each, contributing to a total value of approximately $270,600.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) traded up 2.6% during mid-day trading on Wednesday . The stock traded as high as $86.64 and last traded at $85.85. 1,116,576 shares traded hands during trading, a decline of 72% from the average session volume of 4,014,924 shares. The stock had previously closed at $83.64.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Benchmark restated a "buy" rating and set a $130.00 price objective on shares of Roku in a report on Friday, May 2nd. Rosenblatt Securities lifted their price objective on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. JMP Securities lifted their price objective on Roku from $95.00 to $110.00 and gave the stock a "market outperform" rating in a report on Monday, July 21st. Wedbush restated an "outperform" rating and set a $100.00 price objective on shares of Roku in a report on Monday, July 28th. Finally, KeyCorp lifted their price objective on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $98.96.

Roku Trading Up 1.3%

The firm has a market cap of $12.36 billion, a price-to-earnings ratio of -202.65, a price-to-earnings-growth ratio of 16.16 and a beta of 2.05. The stock has a 50-day moving average of $84.34 and a 200-day moving average of $77.10.

Roku (NASDAQ:ROKU - Get Free Report) last released 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. 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 prior year, the business posted ($0.18) earnings per share. The company's revenue for the quarter was up 14.7% compared to the same quarter last year. As a group, research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total value of $270,600.00. Following the completion of the transaction, the chief financial officer owned 76,132 shares of the company's stock, valued at approximately $6,867,106.40. This represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Charles Collier sold 212,559 shares of the stock in a transaction 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 completion of the transaction, the insider directly owned 200 shares of the company's stock, valued at approximately $19,000. The trade was a 99.91% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 312,233 shares of company stock worth $28,362,681. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

Several institutional investors have recently modified their holdings of the company. Marshall Wace LLP lifted its holdings in shares of Roku by 663.9% during the fourth 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 during the last quarter. Acadian Asset Management LLC lifted its holdings in shares of Roku by 456.7% during the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock valued at $134,222,000 after purchasing an additional 1,563,449 shares during the last quarter. Cadian Capital Management LP purchased a new stake in shares of Roku during the fourth quarter valued at $87,632,000. Jacobs Levy Equity Management Inc. lifted its holdings in shares of 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 purchasing an additional 1,082,548 shares during the last quarter. Finally, Two Sigma Investments LP lifted its holdings in shares of 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 purchasing an additional 726,077 shares during the last quarter. Institutional investors and hedge funds 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.

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