Roku (NASDAQ:ROKU) Trading Up 1.3% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU)’s share price traded up 1.3% during trading on Friday . The company traded as high as $71.15 and last traded at $70.96. 481,709 shares were traded during mid-day trading, a decline of 87% from the average session volume of 3,760,563 shares. The stock had previously closed at $70.07.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on ROKU. Jefferies Financial Group raised Roku from an “underperform” rating to a “hold” rating and boosted their price target for the company from $55.00 to $100.00 in a research note on Thursday, February 20th. JMP Securities reissued a “market outperform” rating and issued a $95.00 price target on shares of Roku in a research note on Friday, May 2nd. Rosenblatt Securities dropped their price target on Roku from $100.00 to $75.00 and set a “neutral” rating on the stock in a research note on Friday, May 2nd. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $70.00 price target on the stock in a research note on Tuesday, March 4th. Finally, Wedbush dropped their price target on Roku from $125.00 to $100.00 and set an “outperform” rating on the stock in a research note on Monday, April 28th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have issued a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $87.93.

Roku Stock Up 1.9%

The business has a 50-day moving average price of $65.92 and a two-hundred day moving average price of $74.41. The company has a market capitalization of $10.42 billion, a price-to-earnings ratio of -80.19 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.27) by $0.08. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The business had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter in the prior year, the company posted ($0.35) earnings per share. Roku’s revenue was up 15.8% compared to the same quarter last year. On average, sell-side analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Anthony J. Wood sold 4,600 shares of the company’s stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $75.00, for a total transaction of $345,000.00. Following the completion of the sale, the chief executive officer now owns 6,243 shares in the company, valued at approximately $468,225. This represents a 42.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 2,000 shares of the company’s stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $99.95, for a total value of $199,900.00. Following the sale, the chief financial officer now owns 56,555 shares of the company’s stock, valued at $5,652,672.25. This trade represents a 3.42% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 17,111 shares of company stock worth $1,365,112. 13.98% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ROKU. Avanza Fonder AB bought a new position in Roku in the 4th quarter valued at $3,499,000. O Keefe Stevens Advisory Inc. grew its stake in Roku by 39.5% in the 4th quarter. O Keefe Stevens Advisory Inc. now owns 3,893 shares of the company’s stock valued at $289,000 after purchasing an additional 1,102 shares during the period. Stonekeep Investments LLC bought a new position in Roku in the 4th quarter valued at $261,000. Ameritas Advisory Services LLC bought a new position in Roku in the 4th quarter valued at $311,000. Finally, Janney Montgomery Scott LLC bought a new position in Roku in the 4th quarter valued at $1,353,000. Institutional investors own 86.30% of the company’s stock.

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.