Roku (NASDAQ:ROKU) Shares Gap Up – Still a Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) gapped up before the market opened on Monday . The stock had previously closed at $74.41, but opened at $81.32. Roku shares last traded at $82.15, with a volume of 2,915,999 shares.

Analyst Ratings Changes

A number of equities research analysts recently commented on ROKU shares. FBN Securities assumed coverage on shares of Roku in a report on Friday, March 28th. They issued an “outperform” rating and a $93.00 price target on the stock. Rosenblatt Securities lowered their target price on Roku from $100.00 to $75.00 and set a “neutral” rating on the stock in a research note on Friday, May 2nd. Citigroup dropped their price target on Roku from $81.00 to $68.00 and set a “neutral” rating on the stock in a research report on Tuesday, May 6th. Needham & Company LLC reissued a “buy” rating and issued a $88.50 price objective on shares of Roku in a report on Tuesday. Finally, Wells Fargo & Company lowered their price objective on Roku from $129.00 to $93.00 and set an “overweight” rating on the stock in a research note on Monday, April 28th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and an average price target of $89.24.

Roku Stock Performance

The stock has a market capitalization of $11.77 billion, a PE ratio of -110.45 and a beta of 2.09. The business’s 50-day moving average price is $68.33 and its 200 day moving average price is $75.01.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping the consensus estimate of ($0.27) by $0.08. The business had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.01 billion. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The firm’s revenue was up 15.8% on a year-over-year basis. During the same period in the previous year, the business earned ($0.35) earnings per share. As a group, equities research analysts predict that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In other Roku news, CEO Anthony J. Wood sold 4,600 shares of the firm’s stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $75.00, for a total transaction of $345,000.00. Following the sale, the chief executive officer now owns 6,243 shares in the company, valued at $468,225. This trade represents a 42.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Matthew C. Banks sold 629 shares of Roku stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $72.98, for a total value of $45,904.42. Following the sale, the chief accounting officer now directly owns 8,555 shares of the company’s stock, valued at approximately $624,343.90. This trade represents a 6.85% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 64,737 shares of company stock valued at $4,987,114. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several institutional investors have recently modified their holdings of ROKU. Garde Capital Inc. bought a new stake in Roku in the 1st quarter worth approximately $25,000. Banque Transatlantique SA bought a new position in Roku during the first quarter valued at approximately $28,000. Vision Financial Markets LLC purchased a new position in shares of Roku during the fourth quarter worth approximately $30,000. Beaird Harris Wealth Management LLC bought a new stake in shares of Roku in the 1st quarter worth approximately $30,000. Finally, Golden State Wealth Management LLC lifted its holdings in shares of Roku by 125.4% in the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock worth $31,000 after acquiring an additional 247 shares during the last quarter. 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.