Roku (NASDAQ:ROKU) Stock Price Up 3.9% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price shot up 3.9% during mid-day trading on Tuesday . The stock traded as high as $87.77 and last traded at $87.68. 3,242,879 shares were traded during mid-day trading, a decline of 15% from the average session volume of 3,818,756 shares. The stock had previously closed at $84.42.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of recent research reports. Arete Research set a $132.00 target price on shares of Roku and gave the company a “buy” rating in a research report on Monday, January 5th. Moffett Nathanson reaffirmed a “neutral” rating and set a $100.00 price target on shares of Roku in a report on Friday, February 13th. Weiss Ratings raised shares of Roku from a “sell (d-)” rating to a “hold (c-)” rating in a research note on Tuesday, February 17th. Susquehanna restated a “positive” rating and set a $130.00 price objective on shares of Roku in a research report on Friday, October 31st. Finally, Bank of America increased their target price on Roku from $115.00 to $140.00 and gave the company a “buy” rating in a research report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $123.96.

Roku Stock Performance

The firm has a market capitalization of $13.78 billion, a P/E ratio of 163.99 and a beta of 1.99. The firm has a 50 day simple moving average of $100.75 and a two-hundred day simple moving average of $99.05.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to the consensus estimate of $1.35 billion. During the same period last year, the business posted ($0.24) earnings per share. Roku’s revenue was up 16.1% on a year-over-year basis. Sell-side analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Activity

In related news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $88.88, for a total value of $266,640.00. Following the sale, the chief financial officer owned 84,267 shares in the company, valued at approximately $7,489,650.96. This trade represents a 3.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $96.48, for a total transaction of $192,960.00. Following the completion of the transaction, the director directly owned 7,782 shares in the company, valued at $750,807.36. The trade was a 20.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 219,710 shares of company stock valued at $22,761,608. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC raised its holdings in Roku by 275.5% in the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Tableaux LLC purchased a new position in shares of Roku in the 2nd quarter worth about $1,746,000. Fred Alger Management LLC raised its position in shares of Roku by 7,087.7% in the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after purchasing an additional 1,401,664 shares during the last quarter. Holocene Advisors LP lifted its stake in shares of Roku by 352.3% in the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after buying an additional 1,285,585 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Roku in the 4th quarter worth $92,808,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Company Profile

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.