Roku (NASDAQ:ROKU) Trading 3% Higher – Still a Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 3% during trading on Wednesday . The stock traded as high as $125.03 and last traded at $124.16. 1,896,026 shares were traded during trading, a decline of 40% from the average session volume of 3,179,880 shares. The stock had previously closed at $120.58.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Rosenblatt Securities boosted their price objective on shares of Roku from $118.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Roku in a research note on Friday, May 15th. Zacks Research cut shares of Roku from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, April 14th. Jefferies Financial Group boosted their price objective on shares of Roku from $135.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Finally, Benchmark boosted their price objective on shares of Roku from $130.00 to $160.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Twenty-one equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $143.42.

Roku Stock Performance

The firm has a market cap of $18.51 billion, a PE ratio of 94.40 and a beta of 2.04. The stock’s 50 day simple moving average is $108.39 and its 200 day simple moving average is $103.40.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter in the previous year, the company earned ($0.19) EPS. The business’s quarterly revenue was up 22.4% compared to the same quarter last year. As a group, analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current year.

Insider Activity at Roku

In other Roku news, insider Charles Collier sold 205,821 shares of the business’s stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total value of $21,611,205.00. Following the completion of the transaction, the insider owned 11,131 shares of the company’s stock, valued at $1,168,755. The trade was a 94.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 75,000 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $128.79, for a total transaction of $9,659,250.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 692,038 shares of company stock worth $76,667,575 in the last 90 days. 13.45% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in shares of Roku by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock worth $1,301,557,000 after acquiring an additional 322,858 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Roku by 10.6% in the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after acquiring an additional 274,024 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Roku by 7.3% in the 4th quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock worth $267,389,000 after acquiring an additional 168,214 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after acquiring an additional 1,419,772 shares during the last quarter. Finally, Holocene Advisors LP lifted its holdings in shares of Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after acquiring an additional 1,285,585 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.