Roku (NASDAQ:ROKU) Shares Up 2.5% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shot up 2.5% on Wednesday . The stock traded as high as $105.73 and last traded at $100.99. 2,876,310 shares were traded during mid-day trading, a decline of 16% from the average session volume of 3,408,862 shares. The stock had previously closed at $98.53.

Analyst Ratings Changes

Several brokerages have recently weighed in on ROKU. Benchmark reaffirmed a “buy” rating on shares of Roku in a research report on Wednesday, February 4th. Weiss Ratings upgraded shares of Roku from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Tuesday, February 17th. Jefferies Financial Group upgraded shares of Roku from a “hold” rating to a “buy” rating and lifted their price objective for the company from $100.00 to $135.00 in a research note on Thursday, December 11th. KeyCorp lifted their price objective on shares of Roku from $128.00 to $130.00 and gave the company an “overweight” rating in a research note on Friday, February 13th. Finally, Moffett Nathanson reiterated a “neutral” rating and set a $100.00 price objective on shares of Roku in a research note on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $127.58.

Roku Trading Up 2.4%

The business’s 50-day simple moving average is $93.77 and its two-hundred day simple moving average is $99.52. The company has a market capitalization of $15.11 billion, a PE ratio of 179.78 and a beta of 2.00.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The company had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.35 billion. During the same period in the previous year, the business earned ($0.24) EPS. Roku’s revenue for the quarter was up 16.1% compared to the same quarter last year. On average, analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Activity at Roku

In other Roku news, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $95.54, for a total transaction of $191,080.00. Following the transaction, the director directly owned 7,782 shares in the company, valued at $743,492.28. This represents a 20.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 50,000 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $99.68, for a total transaction of $4,984,000.00. The SEC filing for this sale provides additional information. Insiders sold 418,944 shares of company stock worth $43,008,615 over the last ninety days. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently bought and sold shares of ROKU. Empowered Funds LLC increased its holdings in Roku by 18.6% in the first quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after buying an additional 515 shares during the last quarter. Focus Partners Wealth bought a new position in Roku during the first quarter worth $229,000. EverSource Wealth Advisors LLC lifted its stake in Roku by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $123,000 after purchasing an additional 826 shares during the last quarter. First Trust Advisors LP lifted its stake in Roku by 231.0% during the second quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after purchasing an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. bought a new position in Roku during the second quarter worth $326,000. 86.30% of the stock is owned by institutional investors.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.