Roku (NASDAQ:ROKU) Stock Jumps 1.4% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price shot up 1.4% on Thursday. The stock traded as high as $155.13 and last traded at $154.67. 1,783,918 shares were traded during mid-day trading, a decline of 46% from the average daily volume of 3,280,018 shares. The stock had previously closed at $152.57.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Shareholders approved Fox’s $22 billion acquisition of Roku, removing a major transaction hurdle and reinforcing expectations that the deal will proceed. The combination would give Fox direct access to Roku’s large household and advertising ecosystem. Shareholders Approve Fox’s $22 Billion Roku Acquisition
• Positive Sentiment: Bank of America upgraded Fox to Buy from Underperform and raised its price target to $85 from $54, arguing that the Roku transaction could improve Fox’s growth outlook and generate approximately $700 million in additional annual earnings by 2028. The endorsement supports the strategic rationale for Roku’s valuation and deal prospects. Fox upgraded to Buy at Bank of America as Roku deal boosts growth outlook
• Positive Sentiment: Analysts and market commentary continue to highlight Roku’s scale in U.S. streaming, advertising potential and improving earnings trends. Zacks also lists ROKU among non-tech Nasdaq stocks with strong growth trends and rising earnings estimates, supporting recent upward momentum. Buy 5 Top-Ranked Non-Tech Nasdaq Stocks to Maximize Q4 Gains
• Neutral Sentiment: Roku TV’s inclusion in discounted third-party products such as Aurzen’s mini projector increases consumer visibility for the platform, but the promotion is unlikely to materially affect Roku’s near-term financial results. Aurzen’s E1R Mini Projector Has Roku TV Built-In
• Negative Sentiment: The acquisition means Roku’s future will be tied to Fox rather than remaining an independent public company. Investors may therefore focus less on standalone Roku operating performance and more on deal completion, integration risks and the final value delivered to Roku shareholders.

Analysts Set New Price Targets

A number of research analysts have commented on the company. JPMorgan Chase & Co. assumed coverage on Roku in a report on Monday, August 24th. They set a “neutral” rating and a $160.00 target price on the stock. Seaport Research Partners downgraded Roku from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. Citigroup boosted their price target on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a report on Friday, July 17th. Wells Fargo & Company reissued an “equal weight” rating and set a $165.00 price target (down from $167.00) on shares of Roku in a research report on Friday, August 14th. Finally, Weiss Ratings raised Roku from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the company. According to data from MarketBeat.com, Roku currently has a consensus rating of “Hold” and a consensus price target of $156.17.

Roku Stock Down 0.1%

The firm’s 50 day moving average is $154.78 and its two-hundred day moving average is $137.22. The stock has a market cap of $22.94 billion, a price-to-earnings ratio of 66.04 and a beta of 2.05.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.47. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%. Roku’s quarterly revenue was up 21.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.07 earnings per share. On average, analysts anticipate that Roku, Inc. will post 2.92 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In related news, insider Gilbert Fuchsberg sold 10,719 shares of Roku stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $150.00, for a total value of $1,607,850.00. Following the sale, the insider directly owned 40,380 shares in the company, valued at $6,057,000. This trade represents a 20.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of Roku stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $157.11, for a total transaction of $1,099,770.00. Following the completion of the sale, the chief financial officer owned 65,963 shares in the company, valued at approximately $10,363,446.93. This represents a 9.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 112,285 shares of company stock valued at $17,154,985. Corporate insiders own 13.45% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Moran Wealth Management LLC bought a new stake in shares of Roku during the 1st quarter worth $2,990,000. Bank of New York Mellon Corp acquired a new stake in shares of Roku during the second quarter worth $105,216,000. Contravisory Investment Management Inc. acquired a new stake in shares of Roku during the second quarter worth $1,184,000. California Public Employees Retirement System raised its position in shares of Roku by 14.8% during the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company’s stock worth $24,674,000 after purchasing an additional 33,593 shares during the period. Finally, Lazard Asset Management LLC lifted its holdings in shares of Roku by 31.6% during the first quarter. Lazard Asset Management LLC now owns 96,204 shares of the company’s stock valued at $9,103,000 after purchasing an additional 23,092 shares during the last quarter. Institutional investors own 86.30% of the company’s stock.

Roku Company Profile

Roku, Inc develops and operates a television streaming platform that connects consumers with digital entertainment. Its platform enables users to access streaming services, live television, movies, music and other content through Roku devices and Roku-powered televisions.

The company offers Roku streaming players, Roku-branded televisions and the Roku operating system, which it licenses to television manufacturers. Roku also operates The Roku Channel, an ad-supported streaming service offering movies, television programs, news, live channels and other content.