Roku (NASDAQ:ROKU) Shares Up 1.9% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price was up 1.9% on Tuesday . The stock traded as high as $113.40 and last traded at $111.09. Approximately 5,113,041 shares traded hands during trading, an increase of 37% from the average daily volume of 3,743,052 shares. The stock had previously closed at $109.03.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on ROKU shares. Piper Sandler upgraded shares of Roku from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $88.00 to $135.00 in a research note on Monday, November 3rd. Raymond James Financial reaffirmed a “market perform” rating on shares of Roku in a report on Friday, October 31st. Evercore ISI reiterated a “positive” rating on shares of Roku in a report on Friday, October 31st. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Friday, October 31st. Finally, UBS Group boosted their price objective on shares of Roku from $95.00 to $103.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Roku has a consensus rating of “Moderate Buy” and an average target price of $116.91.

Roku Price Performance

The stock’s 50-day moving average is $99.26 and its two-hundred day moving average is $93.08. The company has a market cap of $16.41 billion, a P/E ratio of -555.42 and a beta of 1.98.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. The business had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.21 billion. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The company’s quarterly revenue was up 14.0% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.06) EPS. On average, analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insider Transactions at Roku

In other news, CEO Anthony J. Wood sold 50,000 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $103.86, for a total transaction of $5,193,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charles Collier sold 118,088 shares of the firm’s stock in a transaction that occurred on Friday, October 31st. The stock was sold at an average price of $115.00, for a total transaction of $13,580,120.00. Following the completion of the transaction, the insider directly owned 200 shares in the company, valued at approximately $23,000. The trade was a 99.83% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 493,918 shares of company stock worth $52,340,981. 13.98% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ROKU. Banque Transatlantique SA purchased a new position in shares of Roku during the 1st quarter worth $28,000. Beaird Harris Wealth Management LLC bought a new position in Roku in the 1st quarter worth $30,000. Westfuller Advisors LLC bought a new position in Roku in the 3rd quarter worth $30,000. Root Financial Partners LLC purchased a new position in Roku during the third quarter valued at $33,000. Finally, Rakuten Securities Inc. grew its holdings in Roku by 55.6% during the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after purchasing an additional 158 shares during the period. 86.30% of the stock is currently owned by institutional investors.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.