Roku (NASDAQ:ROKU) Trading 1% Higher - Is it Time to Buy?

Roku, Inc. (NASDAQ: ROKU) saw its stock increase by 1% on Wednesday, reaching a high of $79.75 before closing at $79.56. The trading volume was 768,296 shares, which marked an 82% decrease from its average session volume of 4,350,347 shares. Previously, the stock had finished the day at $78.80.

Analysts Adjust Price Targets

Several research firms have recently shared their views on Roku's stock. Wells Fargo & Company raised its price target on Roku from $72.00 to $74.00, maintaining an "equal weight" rating. Macquarie reiterated its "outperform" rating while setting a price target of $90.00. Citigroup adjusted its price target from $60.00 to $77.00, assigning a "neutral" rating. JPMorgan Chase & Co. also raised its price target from $90.00 to $92.00, giving Roku an "overweight" rating. Bank of America increased its price target from $75.00 to $90.00 and labeled the stock as a "buy." There are two analysts with a sell rating, nine holding a neutral rating, twelve recommending a buy, and one strong buy designation. Data from MarketBeat.com indicates that Roku has an average rating of "Moderate Buy" with a consensus price target set at $83.81.

Roku Stock Performance

The fifty-day moving average price of Roku is $75.37, while the 200-day moving average is $67.99. The company's market capitalization stands at $11.55 billion, and it has a P/E ratio of -66.30 and a beta of 2.06.

Roku recently announced its earnings on October 30th, revealing EPS of ($0.06), surpassing analysts' average estimates of ($0.35) by $0.29. The company experienced a 4.42% negative net margin and a negative return on equity of 7.22%. Revenues for the quarter reached $1.06 billion, exceeding forecasts of $1.02 billion, with a 16.5% increase in quarterly revenue compared to the same quarter last year. Analysts anticipate Roku to report -1.1 EPS for the current fiscal year.

Insider Activities

On another note, Roku's CEO, Anthony J. Wood, sold 25,000 shares of stock on October 10th for approximately $1.93 million at an average price of $77.20. Despite this sale, he continues to hold 5,020 shares valued around $387,544, marking an 83.28% decline in his ownership. Additionally, CFO Dan Jedda sold 1,000 shares on December 16th, at an average price of $82.73 for roughly $82,730, representing a 1.53% decrease in his stake. Over the past 90 days, Roku insiders have sold 73,096 shares totaling about $5.66 million, with company insiders owning 13.98% of the stock.

Institutional Investments

Several institutional investors have recently adjusted their positions in Roku. In the second quarter, Bank of New York Mellon Corp increased its holdings by 5.2%, now owning 500,794 shares valued at $30,013,000. Migdal Insurance & Financial Holdings Ltd. and IQ EQ Fund Management Ireland Ltd. acquired new positions valued at $81,000 and $575,000, respectively. Panagora Asset Management increased its stake by 25.5%, owning 14,456 shares worth $866,000. Institutional investors and hedge funds currently hold 86.30% of Roku's stock.

Overview of Roku

Roku, Inc. operates a TV streaming platform both in the United States and globally. The company has two segments: Platform and Devices. Its streaming service enables users to find and access various TV shows, movies, news, sports, and more. The Platform segment focuses on digital advertising, including video ads, media promotions, and streaming service distribution, which comprises subscription and transaction revenue shares.

Final Thoughts on Investing

Before investing in Roku, it is advisable to research thoroughly. While it currently holds a "Moderate Buy" rating among analysts, many experts believe there may be better investment opportunities available. Reviewing stocks recommended by top analysts could provide alternative ideas for potential investments.

Roku, Stocks, Investing