Roku (NASDAQ:ROKU) Trading 2.6% Higher – Still a Buy?

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

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 31st. Pivotal Research upped their target price on shares of Roku from $120.00 to $135.00 and gave the company a “buy” rating in a research note on Monday, November 3rd. Morgan Stanley reissued an “underweight” rating on shares of Roku in a research report on Friday, October 31st. 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. Finally, Guggenheim raised their price objective on Roku from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Friday, August 1st. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $110.18.

Roku Stock Performance

The firm has a market capitalization of $15.51 billion, a P/E ratio of -524.97 and a beta of 2.18. The firm’s 50-day moving average is $98.97 and its 200 day moving average is $87.30.

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

Insider Transactions at Roku

In other Roku news, CEO Anthony J. Wood sold 18,700 shares of the business’s stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $100.00, for a total value of $1,870,000.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Neil D. Hunt sold 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $106.61, for a total transaction of $213,220.00. Following the transaction, the director directly owned 7,782 shares of the company’s stock, valued at $829,639.02. This represents a 20.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 460,463 shares of company stock worth $48,200,847 in the last 90 days. 13.98% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Vanguard Group Inc. lifted its position in Roku by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock worth $1,301,557,000 after buying an additional 322,858 shares in the last quarter. Acadian Asset Management LLC increased its position in shares of Roku by 41.2% in the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock valued at $236,545,000 after acquiring an additional 785,864 shares during the last quarter. Tableaux LLC bought a new stake in Roku during the second quarter worth about $1,746,000. Jacobs Levy Equity Management Inc. boosted its position in Roku by 21.9% during the first quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company’s stock valued at $111,372,000 after purchasing an additional 284,323 shares during the last quarter. Finally, Duquesne Family Office LLC boosted its position in Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock valued at $96,723,000 after purchasing an additional 606,900 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.