Roku (NASDAQ:ROKU) Stock Price Up 1.4% – Should You Buy?

Shares of Roku, Inc. (NASDAQ:ROKU) were up 1.4% during trading on Wednesday . The stock traded as high as $158.22 and last traded at $157.70. 2,488,475 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 3,538,043 shares. The stock had previously closed at $155.53.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: New OLED lineup expands Roku’s addressable market. Roku introduced the Pro Series OLED and Pro Series LX OLED TVs, with prices starting at $999. The aggressively priced models could attract consumers seeking premium picture quality and strengthen Roku’s brand in higher-end televisions. The TVs are being sold exclusively through Amazon. Roku Launches All-New Pro Series OLED and Pro Series LX OLED TVs
• Positive Sentiment: Pricing may improve competitive positioning. Multiple reviews characterized Roku’s first OLED TVs as among the least expensive OLED options, potentially supporting unit sales, user additions and advertising opportunities on the Roku platform. Roku Rocks The TV World With Aggressively Priced Debut OLED Models
• Positive Sentiment: Hardware ecosystem remains highly visible. Coverage of Roku-compatible devices, including an Aurzen portable projector with built-in Roku TV functionality, reinforces the company’s distribution reach beyond traditional television sets. Roku TV Built-In Aurzen Portable Projector

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on ROKU shares. Seaport Research Partners cut shares of Roku from a “buy” rating to a “neutral” rating in a research note on Friday, August 7th. Citizens Jmp lowered Roku from a “market outperform” rating to a “hold” rating in a research report on Tuesday, June 16th. Wedbush downgraded Roku from an “outperform” rating to a “neutral” rating and set a $155.00 price objective for the company. in a research report on Tuesday, June 16th. Citigroup boosted their price objective on Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a research note on Friday, July 17th. Finally, Piper Sandler cut Roku from an “overweight” rating to a “neutral” rating and increased their target price for the stock from $148.00 to $160.00 in a report on Tuesday, June 16th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have issued a Hold rating to the stock. According to data from MarketBeat.com, Roku currently has a consensus rating of “Hold” and an average price target of $156.17.

Roku Price Performance

The firm has a market capitalization of $23.41 billion, a price-to-earnings ratio of 67.39 and a beta of 2.01. The business has a 50 day moving average of $147.26 and a 200 day moving average of $123.48.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%.The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same period in the prior year, the business posted $0.07 EPS. Roku’s revenue was up 21.9% on a year-over-year basis. As a group, equities analysts predict that Roku, Inc. will post 2.85 EPS for the current year.

Insiders Place Their Bets

In other Roku news, CFO Dan Jedda sold 7,000 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $143.87, for a total transaction of $1,007,090.00. Following the completion of the transaction, the chief financial officer owned 79,963 shares of the company’s stock, valued at $11,504,276.81. This represents a 8.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $145.93, for a total transaction of $2,997,110.34. Following the sale, the insider directly owned 15,200 shares in the company, valued at $2,218,136. This trade represents a 57.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 145,464 shares of company stock worth $19,887,430 in the last three months. 13.45% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently modified their holdings of ROKU. Empowered Funds LLC lifted its holdings in shares of Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock worth $232,000 after buying an additional 515 shares in the last quarter. Focus Partners Wealth bought a new position in Roku during the first quarter worth about $229,000. EverSource Wealth Advisors LLC increased its position in Roku by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $123,000 after acquiring an additional 826 shares during the period. First Trust Advisors LP raised its stake in Roku by 231.0% in the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after purchasing an additional 49,399 shares in the last quarter. Finally, Brown Advisory Inc. bought a new stake in Roku in the 2nd quarter valued at about $326,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

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.