Roku (NASDAQ:ROKU) Shares Gap Up – Still a Buy?

Roku, Inc. (NASDAQ:ROKU) gapped up prior to trading on Thursday . The stock had previously closed at $105.36, but opened at $109.45. Roku shares last traded at $109.1410, with a volume of 1,933,825 shares changing hands.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Susquehanna reissued a “positive” rating and set a $130.00 price target on shares of Roku in a research report on Friday, October 31st. JPMorgan Chase & Co. raised their price target on shares of Roku from $105.00 to $115.00 and gave the company an “overweight” rating in a research report on Friday, October 31st. Weiss Ratings restated a “sell (d-)” rating on shares of Roku in a research note on Wednesday, October 8th. Piper Sandler upgraded Roku from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $88.00 to $135.00 in a report on Monday, November 3rd. Finally, Morgan Stanley restated an “underweight” rating on shares of Roku in a report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $115.64.

Roku Price Performance

The stock has a market cap of $15.80 billion, a price-to-earnings ratio of -535.27 and a beta of 1.98. The business’s 50 day moving average is $99.06 and its 200 day moving average is $92.19.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The company had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the previous year, the business earned ($0.06) EPS. Roku’s revenue for the quarter was up 14.0% on a year-over-year basis. As a group, analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current year.

Insiders Place Their Bets

In other Roku news, insider Charles Collier sold 118,088 shares of the firm’s stock in a transaction dated Friday, October 31st. The stock was sold at an average price of $115.00, for a total transaction of $13,580,120.00. Following the transaction, the insider owned 200 shares of the company’s stock, valued at approximately $23,000. This trade represents a 99.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Anthony J. Wood sold 50,000 shares of Roku stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $103.86, for a total value of $5,193,000.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 415,668 shares of company stock worth $43,965,186 over the last ninety days. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently bought and sold shares of the business. XTX Topco Ltd purchased a new position in Roku during the 1st quarter worth $225,000. Charles Schwab Investment Management Inc. grew its holdings in shares of Roku by 3.8% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,028,332 shares of the company’s stock worth $72,436,000 after buying an additional 37,465 shares during the last quarter. Deutsche Bank AG increased its position in Roku by 20.1% in the 1st quarter. Deutsche Bank AG now owns 398,438 shares of the company’s stock valued at $28,066,000 after acquiring an additional 66,756 shares during the period. Swiss National Bank increased its position in Roku by 0.3% in the 1st quarter. Swiss National Bank now owns 360,700 shares of the company’s stock valued at $25,408,000 after acquiring an additional 1,000 shares during the period. Finally, Forsta AP Fonden purchased a new stake in Roku during the 1st quarter valued at approximately $1,838,000. Hedge funds and other 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.