Roku (NASDAQ:ROKU) Trading Up 1.2% – Should You Buy?
by Kim Johansen · The Markets DailyRoku, Inc. (NASDAQ:ROKU – Get Free Report)’s share price traded up 1.2% during mid-day trading on Tuesday . The stock traded as high as $99.20 and last traded at $96.30. 1,684,611 shares were traded during trading, a decline of 54% from the average session volume of 3,678,999 shares. The stock had previously closed at $95.18.
Wall Street Analysts Forecast Growth
Several brokerages recently commented on ROKU. Rosenblatt Securities raised shares of Roku from a “neutral” rating to a “buy” rating and increased their price objective for the company from $106.00 to $118.00 in a research note on Friday, February 13th. Morgan Stanley set a $135.00 target price on shares of Roku and gave the stock an “overweight” rating in a research note on Tuesday, December 16th. Wall Street Zen upgraded shares of Roku from a “hold” rating to a “buy” rating in a report on Sunday, December 7th. JPMorgan Chase & Co. raised their price objective on Roku from $115.00 to $125.00 and gave the company an “overweight” rating in a report on Friday, December 12th. Finally, Oppenheimer boosted their price objective on Roku from $105.00 to $120.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Roku currently has an average rating of “Moderate Buy” and an average price target of $125.40.
Get Our Latest Research Report on Roku
Roku Stock Performance
The company has a fifty day simple moving average of $97.02 and a 200 day simple moving average of $99.71. The stock has a market capitalization of $14.13 billion, a price-to-earnings ratio of 168.18 and a beta of 1.98.
Roku (NASDAQ:ROKU – Get Free Report) last issued its quarterly earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.25. The company had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. Roku had a return on equity of 3.40% and a net margin of 1.87%.The business’s quarterly revenue was up 16.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.24) earnings per share. As a group, equities analysts predict that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.
Insider Activity
In other news, CEO Anthony J. Wood sold 75,000 shares of the stock in a transaction on Monday, January 12th. The shares were sold at an average price of $109.61, for a total transaction of $8,220,750.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Dan Jedda sold 15,000 shares of Roku stock in a transaction on Monday, March 16th. The stock was sold at an average price of $94.23, for a total transaction of $1,413,450.00. Following the transaction, the chief financial officer directly owned 85,115 shares of the company’s stock, valued at $8,020,386.45. This represents a 14.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 213,124 shares of company stock worth $21,433,878. 13.98% of the stock is owned by insiders.
Institutional Trading of Roku
A number of large investors have recently bought and sold shares of the business. Blue Trust Inc. grew its position in Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares during the period. Aventura Private Wealth LLC acquired a new position in Roku during the fourth quarter worth $26,000. Westfuller Advisors LLC bought a new position in shares of Roku in the third quarter valued at $30,000. WPG Advisers LLC bought a new position in shares of Roku in the fourth quarter valued at $31,000. Finally, Safe Harbor Fiduciary LLC acquired a new position in shares of Roku during the fourth quarter valued at about $31,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.
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.