Roku (NASDAQ:ROKU) Trading Up 6.6% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price was up 6.6% during mid-day trading on Wednesday . The company traded as high as $74.45 and last traded at $71.82. Approximately 3,300,326 shares were traded during mid-day trading, a decline of 10% from the average daily volume of 3,681,129 shares. The stock had previously closed at $67.36.

Analyst Ratings Changes

ROKU has been the topic of several analyst reports. Rosenblatt Securities reiterated a “neutral” rating and set a $86.00 price target on shares of Roku in a research report on Thursday, February 13th. Jefferies Financial Group upgraded Roku from an “underperform” rating to a “hold” rating and upped their price target for the company from $55.00 to $100.00 in a research report on Thursday, February 20th. Citigroup upped their price target on Roku from $70.00 to $103.00 and gave the company a “neutral” rating in a research report on Thursday, February 20th. Benchmark upped their price target on Roku from $100.00 to $130.00 and gave the company a “buy” rating in a research report on Friday, February 14th. Finally, Moffett Nathanson upgraded Roku from a “sell” rating to a “neutral” rating and set a $70.00 price target on the stock in a research report on Tuesday, March 4th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $96.71.

Roku Stock Up 6.1 %

The company has a 50-day simple moving average of $80.91 and a two-hundred day simple moving average of $77.07. The stock has a market cap of $11.43 billion, a P/E ratio of -87.45 and a beta of 2.12.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. As a group, sell-side analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the transaction, the chief financial officer now owns 63,555 shares in the company, valued at $4,905,174.90. This represents a 1.55 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Matthew C. Banks sold 1,906 shares of the company’s stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total value of $153,166.16. Following the transaction, the chief accounting officer now owns 7,256 shares of the company’s stock, valued at approximately $583,092.16. This represents a 20.80 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 92,308 shares of company stock worth $8,213,436. 13.98% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently made changes to their positions in ROKU. FMR LLC raised its holdings in shares of Roku by 31.7% during the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares in the last quarter. Marshall Wace LLP raised its holdings in Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock worth $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. Holocene Advisors LP bought a new position in Roku in the third quarter worth $129,015,000. Cadian Capital Management LP bought a new position in Roku in the fourth quarter worth $87,632,000. Finally, Jacobs Levy Equity Management Inc. raised its holdings in Roku by 505.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock worth $96,402,000 after purchasing an additional 1,082,548 shares in the last quarter. 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.