Roku (NASDAQ:ROKU) Shares Up 0% - Time to Buy?

Roku, Inc. (NASDAQ:ROKU) saw its shares increase by 0% on Thursday, ending the day at $85.58 after peaking at $87.00. During the day, about 661,470 shares were traded, which is significantly lower than the average daily volume of 3,664,415 shares. The stock had previously closed at $85.57.

Analyst Upgrades and Downgrades

Recently, several equities analysts have evaluated Roku's shares. Pivotal Research has upgraded Roku from a "hold" rating to a "buy" rating, increasing its price target from $65.00 to $125.00 in their report dated February 14th. Similarly, JMP Securities has raised their price target on Roku from $95.00 to $115.00 and assigned a "market outperform" rating. Baird R W has upgraded Roku from "hold" to "strong-buy" in a report dated November 18th. Wells Fargo & Company also made a move by upgrading Roku from an "equal weight" rating to "overweight," raising its price target from $74.00 to $129.00 as of February 14th. Jefferies Financial Group has raised their rating from "underperform" to "hold" and adjusted their price target from $55.00 to $100.00. In total, two analysts have rated the stock as a sell, six have given it a hold rating, fourteen analysts applied a buy rating, and two have labeled it a strong buy. According to MarketBeat, the average analyst rating for Roku is "Moderate Buy" with a consensus target price of $96.00.

Roku Stock Performance

The current market capitalization for Roku is $11.89 billion, with a PE ratio of -91.56 and a beta of 2.05. The stock is performing relatively well, with its fifty-day moving average at $82.02 and the 200-day moving average at $75.84. The company's latest earnings report, released on February 13th, indicated that Roku had a loss of ($0.24) per share for the quarter, surpassing the consensus estimate of a ($0.44) loss by $0.20. However, the company has a negative net margin of 3.15% along with a negative return on equity of 5.34%. The quarterly revenue was recorded at $1.20 billion, which was above the analyst estimates of $1.15 billion. Analysts predict Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity at Roku

Recently, CEO Anthony J. Wood sold 25,000 shares of Roku on December 10th, receiving an average price of $82.64 per share, totaling approximately $2.07 million. After this transaction, he continues to own 26,538 shares valued at about $2.19 million. This sale represents a 48.51% decrease in his ownership. Additionally, CFO Dan Jedda sold 1,000 shares on December 16th at an average price of $82.73, worth approximately $82,730, which is a 1.53% decline in his position. Over the past ninety days, insiders sold 109,421 shares valued at around $9.66 million. Currently, company insiders hold about 13.98% of the stock.

Institutional Investors Reactions

Institutional investors have been active in the Roku market lately. FMR LLC increased its position in Roku by 31.7% during the fourth quarter, resulting in ownership of 19,183,942 shares worth approximately $1.43 billion after purchasing an additional 4.61 million shares. Meanwhile, Vanguard Group Inc.'s stake increased by 1.5%, bringing their total to 12,249,091 shares valued at about $910.60 million. Marshall Wace LLP saw a significant boost, increasing its stake by 663.9%, owning 2,335,813 shares valued at approximately $173.64 million. T. Rowe Price Investment Management Inc. also raised its shares by 10.5%, reaching a total of 2,269,751 shares worth $168.73 million. Geode Capital Management LLC increased its holdings by 2.7%, owning 2,147,259 shares worth $159.35 million. Around 86.30% of Roku shares are currently held by institutional investors.

About Roku

Roku, Inc., along with its subsidiaries, operates in the TV streaming space, both in the United States and internationally. The company is divided into two segments: Platform and Devices. Its streaming platform grants users access to a variety of content such as TV shows, movies, news, sports, and more. The Platform segment focuses on digital advertising, including both direct and programmatic video advertising, and provides streaming service distribution through subscription and transaction revenue shares, along with the sale of premium subscriptions and branded app buttons on remote controls.

Should You Invest $1,000 in Roku Right Now?

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Roku, Stocks, Trading