Roku (NASDAQ:ROKU) Stock Price Up 2.6% – Still a Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) traded up 2.6% during trading on Monday . The stock traded as high as $106.61 and last traded at $105.00. 2,836,467 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 3,833,174 shares. The stock had previously closed at $102.30.

Analyst Upgrades and Downgrades

ROKU has been the topic of several analyst reports. Rosenblatt Securities boosted their price target on shares of Roku from $101.00 to $106.00 and gave the company a “neutral” rating in a report on Friday, October 31st. Weiss Ratings reissued a “sell (d-)” rating on shares of Roku in a research note on Wednesday, October 8th. Wells Fargo & Company increased their price target on shares of Roku from $113.00 to $116.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. Pivotal Research lifted their price objective on Roku from $120.00 to $135.00 and gave the company a “buy” rating in a report on Monday, November 3rd. Finally, Wall Street Zen upgraded Roku from a “hold” rating to a “buy” rating in a research note on Sunday, October 19th. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Roku has a consensus rating of “Moderate Buy” and a consensus target price of $110.18.

Roku Price Performance

The company has a market cap of $15.51 billion, a price-to-earnings ratio of -524.97 and a beta of 2.18. The business has a 50 day simple moving average of $98.97 and a 200 day simple moving average of $87.30.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter in the prior year, the company earned ($0.06) EPS. The firm’s quarterly revenue was up 14.0% on a year-over-year basis. Roku has set its Q4 2025 guidance at EPS. As a group, sell-side analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In other news, insider Charles Collier sold 118,088 shares of the stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $115.00, for a total transaction of $13,580,120.00. Following the sale, the insider directly owned 200 shares of the company’s stock, valued at $23,000. This represents a 99.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $100.00, for a total transaction of $2,500,000.00. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 460,463 shares of company stock worth $48,200,847. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several large investors have recently made changes to their positions in ROKU. Berkshire Capital Holdings Inc. boosted its stake in Roku by 1,413,400.0% in the first quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company’s stock valued at $9,957,000 after acquiring an additional 141,340 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Roku in the 1st quarter valued at $6,026,000. Atika Capital Management LLC bought a new position in shares of Roku in the 1st quarter worth $5,086,000. West Tower Group LLC boosted its position in shares of Roku by 128.6% in the 2nd quarter. West Tower Group LLC now owns 8,000 shares of the company’s stock worth $703,000 after purchasing an additional 4,500 shares during the last quarter. Finally, Blair William & Co. IL grew its stake in shares of Roku by 14.7% during the first quarter. Blair William & Co. IL now owns 45,727 shares of the company’s stock worth $3,221,000 after purchasing an additional 5,869 shares during the period. Institutional investors and hedge funds 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.