Roku (NASDAQ:ROKU) Trading Up 1.1% – Still a Buy?

Roku, Inc. (NASDAQ:ROKU) was up 1.1% during trading on Monday . The company traded as high as $126.11 and last traded at $123.57. Approximately 3,534,711 shares changed hands during mid-day trading, an increase of 16% from the average daily volume of 3,047,245 shares. The stock had previously closed at $122.26.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to attract consumer attention through product promotion and distribution news, including Apple Music availability on Roku TV, Roku home screen customization tips, and retailer discounts on Roku TVs and streaming sticks. These stories highlight the company’s broad device presence and ongoing engagement with users. Article Title
• Positive Sentiment: Coverage of Roku-branded TV and streaming device promotions at Walmart, Best Buy, Amazon, and Fox-related bundles suggests the Roku ecosystem remains highly visible in consumer electronics retail, which can support device adoption and platform usage. Article Title
• Neutral Sentiment: Zacks reported that investors have been heavily searching Roku shares, indicating elevated market attention, but the article does not point to a specific new fundamental development. Article Title
• Neutral Sentiment: Roku was described as having zero short interest in the latest update, which does not provide a meaningful new signal for the stock. Article Title
• Negative Sentiment: Insider Charles Collier sold 20,537 shares of Roku stock worth about $2.57 million in a pre-arranged Rule 10b5-1 transaction. While scheduled, insider selling can still weigh on sentiment because it reduces confidence that management sees near-term upside. Article Title

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on ROKU shares. Pivotal Research restated a “buy” rating and issued a $160.00 price target (up from $140.00) on shares of Roku in a report on Friday, May 1st. Citigroup restated a “market outperform” rating on shares of Roku in a report on Thursday, May 28th. Weiss Ratings restated a “hold (c-)” rating on shares of Roku in a report on Friday, May 15th. 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. Finally, Needham & Company LLC increased their price target on Roku from $110.00 to $140.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Twenty-two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $145.50.

Roku Price Performance

The company has a market capitalization of $17.24 billion, a price-to-earnings ratio of 87.93 and a beta of 2.06. The firm has a 50-day moving average price of $116.68 and a two-hundred day moving average price of $105.60.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.23. The company had revenue of $1.25 billion during 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%.Roku’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.19) earnings per share. On average, equities analysts predict that Roku, Inc. will post 2.41 EPS for the current year.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 15,000 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $94.23, for a total value of $1,413,450.00. Following the completion of the transaction, the chief financial officer owned 85,115 shares in the company, valued at $8,020,386.45. This trade represents a 14.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $128.79, for a total value 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 667,168 shares of company stock valued at $75,218,573 over the last three months. 13.45% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Blue Trust Inc. boosted its position in Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares during the last quarter. Aventura Private Wealth LLC acquired a new position in Roku during the fourth quarter valued at approximately $26,000. Bayban boosted its position in Roku by 1,300.0% during the first quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after purchasing an additional 260 shares during the last quarter. WPG Advisers LLC acquired a new position in Roku during the fourth quarter valued at approximately $31,000. Finally, Safe Harbor Fiduciary LLC acquired a new position in Roku during the fourth quarter valued at approximately $31,000. 86.30% of the stock is owned by institutional investors and hedge funds.

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.