Roku (NASDAQ:ROKU) Trading Up 3.4% - Time to Buy?

Key Points

• Roku's stock rose by 3.4% with a latest trading price of $103.57, significantly increasing its daily trading volume by 33% compared to the average.
• Equities research analysts have been upgrading Roku’s ratings, with several firms increasing their price targets, indicating a consensus rating of "Moderate Buy" and an average price target of $101.33.
• Roku recently reported a quarterly earnings per share of $0.07, exceeding expectations, and a revenue increase of 14.7% year-over-year, indicating solid growth.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) was up 3.4% during trading on Wednesday . The stock traded as high as $105.11 and last traded at $103.57. Approximately 5,171,912 shares traded hands during trading, an increase of 33% from the average daily volume of 3,898,551 shares. The stock had previously closed at $100.13.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on ROKU shares. Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and upped their price objective for the company from $80.00 to $100.00 in a report on Tuesday, June 17th. UBS Group upped their price target on Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Wedbush reiterated an "outperform" rating and set a $100.00 price target on shares of Roku in a research report on Monday, July 28th. Finally, Pivotal Research upped their price target on Roku from $100.00 to $120.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Roku currently has an average rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Stock Up 3.4%

The company's 50-day moving average is $93.17 and its two-hundred day moving average is $80.32. The company has a market capitalization of $15.26 billion, a P/E ratio of -246.60, a PEG ratio of 14.01 and a beta of 2.05.

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

Insider Buying and Selling at Roku

In other Roku news, insider Mustafa Ozgen sold 50,527 shares of the stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total transaction of $5,052,700.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 212,559 shares of the stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the transaction, the insider owned 200 shares in the company, valued at $19,000. The trade was a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 417,025 shares of company stock valued at $39,662,358 over the last ninety days. Insiders own 13.98% of the company's stock.

Institutional Trading of Roku

Institutional investors have recently made changes to their positions in the stock. Berkshire Capital Holdings Inc. boosted its stake in shares of Roku by 1,413,400.0% during the first quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock valued at $9,957,000 after purchasing an additional 141,340 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Roku during the first quarter valued at approximately $6,026,000. Atika Capital Management LLC purchased a new stake in shares of Roku during the first quarter valued at approximately $5,086,000. Lecap Asset Management Ltd. purchased a new stake in shares of Roku during the first quarter valued at approximately $511,000. Finally, Blair William & Co. IL boosted its stake in shares of Roku by 14.7% during the first quarter. Blair William & Co. IL now owns 45,727 shares of the company's stock valued at $3,221,000 after purchasing an additional 5,869 shares during the period. Hedge funds and other institutional investors own 86.30% of the company's stock.

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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