Roku (NASDAQ:ROKU) Stock Jumps 1.4% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shares shot up 1.4% on Thursday. The stock traded as high as $160.10 and last traded at $160.06. Approximately 4,805,372 shares changed hands during mid-day trading, an increase of 47% from the average daily volume of 3,277,903 shares. The stock had previously closed at $157.78.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Market confidence in the reported Roku–Fox deal increased after a report suggested the U.S. Department of Justice could soon approve the transaction. The narrowing deal spread indicates investors see a higher probability of completion, though regulatory approval has not yet been confirmed. Roku/Fox deal spread narrows on report DOJ could soon approve deal
• Positive Sentiment: Roku is emphasizing interoperability, data clean rooms, measurement and frequency controls as connected-TV advertising attracts more traditional television budgets. Better targeting and proof of performance could support Roku’s advertising platform and long-term revenue growth. Roku Bets on Interoperability as CTV Moves From Reach to Accountability
• Positive Sentiment: Roku’s latest software update is being characterized as a meaningful device upgrade, while the company’s Pro Series LX OLED televisions are now available through Amazon. These developments may improve user engagement, hardware visibility and the Roku ecosystem, although their direct effect on near-term financial results is likely limited. Roku’s latest update is like a free upgrade for your device Roku’s Pro Series LX OLED TVs Are Now Available on Amazon
• Neutral Sentiment: New Roku Channel programming, including Battle of the Streaming Stars, and the BBC series The Walsh Sisters could help content discovery and engagement, but the articles provide no evidence of material financial impact yet. Battle of the Streaming Stars debuts on Roku Channel The Walsh Sisters sells to Roku’s Howdy
• Negative Sentiment: Roku insider Dan Jedda reportedly sold 7,000 shares. The transaction is a modest potential warning signal, although one insider sale alone does not establish a change in the company’s outlook. Roku insider Dan Jedda sells 7,000 shares

Wall Street Analysts Forecast Growth

ROKU has been the topic of a number of recent research reports. UBS Group increased their price objective on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Seaport Research Partners downgraded shares of Roku from a “buy” rating to a “neutral” rating in a research note on Friday, August 7th. Citigroup upped their target price on Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a report on Friday, July 17th. Needham & Company LLC restated a “buy” rating on shares of Roku in a report on Friday, August 7th. 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 issued a Buy rating and nineteen have given a Hold rating to the stock. According to MarketBeat.com, Roku has a consensus rating of “Hold” and a consensus price target of $156.17.

Roku Stock Up 1.4%

The company has a market cap of $23.76 billion, a PE ratio of 68.40 and a beta of 2.05. The firm has a 50 day simple moving average of $155.11 and a 200-day simple moving average of $138.86.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the firm posted $0.07 earnings per share. The company’s quarterly revenue was up 21.9% on a year-over-year basis. As a group, equities analysts anticipate that Roku, Inc. will post 2.97 EPS for the current year.

Insider Activity

In related news, insider Gilbert Fuchsberg sold 10,719 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $150.00, for a total transaction of $1,607,850.00. Following the completion of the sale, the insider owned 40,380 shares of the company’s stock, valued at $6,057,000. This represents a 20.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the firm’s stock in a transaction that occurred on 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 of the company’s stock, valued at approximately $10,363,446.93. This trade represents a 9.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 119,285 shares of company stock worth $18,224,865 in the last quarter. 13.45% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the company. Bayban increased its position in shares of Roku by 1,300.0% during the first quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after purchasing an additional 260 shares in the last quarter. CX Institutional lifted its holdings in shares of Roku by 44.1% during the 3rd quarter. CX Institutional now owns 281 shares of the company’s stock valued at $43,000 after purchasing an additional 86 shares during the last quarter. Elevation Wealth Partners LLC lifted its holdings in shares of Roku by 208.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company’s stock valued at $44,000 after purchasing an additional 215 shares during the last quarter. Coppell Advisory Solutions LLC acquired a new stake in shares of Roku in the 2nd quarter worth $47,000. Finally, Hilton Head Capital Partners LLC boosted its position in shares of Roku by 175.0% in the 1st quarter. Hilton Head Capital Partners LLC now owns 550 shares of the company’s stock worth $52,000 after purchasing an additional 350 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.