Roku (NASDAQ:ROKU) Stock Price Up 1.5% – Time to Buy?

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 1.5% during trading on Wednesday. The stock traded as high as $163.08 and last traded at $162.77. 2,853,024 shares were traded during trading, a decline of 13% from the average daily volume of 3,274,474 shares. The stock had previously closed at $160.36.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku’s third-quarter results comfortably beat expectations: revenue rose 24.1% year over year to $1.50 billion, and EPS was $1.20 versus the $0.55 consensus. Advertising revenue grew 23%, helping net income reach $183 million. The earnings beat is a key positive for investors. Roku earnings report
• Positive Sentiment: A technical analysis report says ROKU moved above its 20-day moving average after finding support, a signal that may indicate improving short-term momentum. Technical analysis
• Neutral Sentiment: A Roku director and the company’s chief accounting officer sold shares, but both transactions were made under pre-arranged Rule 10b5-1 plans, making them a limited indicator of management sentiment. Director sale filing
• Negative Sentiment: Rosenblatt Securities cut its rating from “buy” to “hold” and set a $160 price target, signaling limited upside in its view. Rosenblatt rating information
• Negative Sentiment: Roku plans to retire its popular Aquatic Life screensaver, drawing complaints from some users. The change appears more relevant to customer sentiment than to near-term financial performance. Screensaver coverage

Analyst Ratings Changes

Several research firms have issued reports on ROKU. UBS Group upped their price objective on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. BMO Capital Markets upgraded Roku from a “market perform” rating to an “outperform” rating in a research report on Tuesday. Seaport Research Partners downgraded Roku from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. Wells Fargo & Company downgraded Roku from an “overweight” rating to an “equal weight” rating and reduced their target price for the company from $167.00 to $165.00 in a report on Friday, August 14th. Finally, Rosenblatt Securities cut Roku from a “buy” rating to a “hold” rating and set a $160.00 target price for the company. in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eighteen have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $156.17.

Roku Trading Up 1.5%

The business’s fifty day moving average price is $155.15 and its 200 day moving average price is $128.06. The firm has a market capitalization of $24.16 billion, a price-to-earnings ratio of 48.16 and a beta of 2.12.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Monday, November 2nd. The company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.65. The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.41 billion. Roku had a net margin of 9.34% and a return on equity of 19.19%. Roku’s quarterly revenue was up 24.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.16 EPS. As a group, sell-side analysts forecast that Roku, Inc. will post 2.97 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Gilbert Fuchsberg sold 10,719 shares of the company’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $150.00, for a total value of $1,607,850.00. Following the completion of the sale, the insider directly owned 40,380 shares of the company’s stock, valued at approximately $6,057,000. This represents a 20.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher Handman sold 2,999 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $466,764.36. Following the sale, the senior vice president owned 8,997 shares of the company’s stock, valued at $1,400,293.08. This trade represents a 25.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 98,747 shares of company stock valued at $15,253,772 in the last quarter. Corporate insiders own 13.45% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership raised its stake in shares of Roku by 229.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after purchasing an additional 1,419,772 shares during the last quarter. HBK Investments L P acquired a new stake in shares of Roku during the second quarter worth $163,604,000. Janus Henderson Group PLC lifted its holdings in shares of Roku by 1,320.4% during the first quarter. Janus Henderson Group PLC now owns 834,619 shares of the company’s stock worth $78,967,000 after purchasing an additional 775,861 shares during the period. Bank of New York Mellon Corp acquired a new stake in shares of Roku during the second quarter worth $105,216,000. Finally, Alua Capital Management LP purchased a new position in Roku in the 1st quarter valued at $44,869,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.