Roku (NASDAQ:ROKU) Shares Up 1.1% – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) was up 1.1% during mid-day trading on Wednesday . The company traded as high as $143.56 and last traded at $143.32. Approximately 3,221,480 shares traded hands during trading, a decline of 16% from the average daily volume of 3,830,563 shares. The stock had previously closed at $141.76.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Wolfe Research downgraded Roku from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, June 16th. Susquehanna downgraded Roku from a “positive” rating to a “neutral” rating and set a $160.00 target price on the stock. in a research note on Tuesday, June 16th. Pivotal Research reissued a “buy” rating and issued a $160.00 target price (up from $140.00) on shares of Roku in a report on Friday, May 1st. Evercore cut Roku from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 15th. Finally, Guggenheim increased their price target on Roku from $140.00 to $145.00 and gave the stock a “buy” rating in a report on Tuesday, June 9th. Ten investment analysts have rated the stock with a Buy rating and seventeen have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $155.12.

Roku Price Performance

The stock has a market cap of $21.32 billion, a price-to-earnings ratio of 108.61 and a beta of 2.01. The stock’s 50-day moving average is $132.42 and its 200 day moving average is $112.31.

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

Insider Activity

In other Roku news, insider Mustafa Ozgen sold 10,194 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $144.00, for a total value of $1,467,936.00. Following the completion of the transaction, the insider owned 19,185 shares in the company, valued at approximately $2,762,640. This represents a 34.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $122.56, for a total transaction of $857,920.00. Following the sale, the chief financial officer owned 71,115 shares in the company, valued at $8,715,854.40. The trade was a 8.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 236,499 shares of company stock valued at $30,582,963 over the last three months. 13.45% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

Institutional investors have recently modified their holdings of the company. Blue Trust Inc. increased its position in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares in the last quarter. Aventura Private Wealth LLC purchased a new stake in shares of Roku in the 4th quarter worth about $26,000. Bayban grew its stake in Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after acquiring an additional 260 shares during the last quarter. WPG Advisers LLC acquired a new stake in Roku in the 4th quarter valued at about $31,000. Finally, Safe Harbor Fiduciary LLC purchased a new position in Roku during the 4th quarter valued at about $31,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.