Roku (NASDAQ:ROKU) Trading Up 0% - Here's Why

Roku, Inc. (NASDAQ:ROKU) saw its shares remain stable, trading up 0% in mid-day trading on Friday. The stock reached a high of $82.96 and was last seen at $81.94. Around 341,550 shares changed hands, which is a significant drop of 92% from the average daily volume of 4,397,279 shares. The previous closing price for the stock was $81.90.

Analyst Upgrades and Downgrades

Roku has captured attention in various research analyst reports. For instance, UBS Group initiated coverage of Roku on November 22nd, giving the stock a "neutral" rating with a price target set at $73.00. On the other hand, Guggenheim upgraded Roku from a "neutral" to a "buy" rating, setting a price target at $75.00. Furthermore, JPMorgan Chase & Co. raised their target price from $90.00 to $92.00 and categorized the stock as "overweight." Benchmark also reissued a "buy" with a target of $105.00 on September 12th. Additionally, Wells Fargo lifted their price target from $72.00 to $74.00 while maintaining an "equal weight" rating. Overall, two analysts rated Roku as a sell, nine as hold, twelve as buy, and one as a strong buy, resulting in a consensus rating of "Moderate Buy" with an average target price of $83.81.

Roku Trading Performance

The stock currently carries a market cap of $11.98 billion, a negative PE ratio of -68.28, and a beta value of 2.06. Roku’s 50-day and 200-day moving average prices are $74.86 and $66.70, respectively.

Roku recently announced its quarterly earnings on October 30th, reporting an earnings per share (EPS) of ($0.06), beating the consensus estimate of ($0.35) by $0.29. The company showed a negative return on equity of 7.22% and a net margin of -4.42%. Revenue for the quarter amounted to $1.06 billion, surpassing the analyst expectations of $1.02 billion. This marks a 16.5% increase compared to the same quarter last year, where it posted an EPS of ($2.33). Analysts predict that Roku will post a loss of -1.1 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In recent insider trading activities, Charles Collier, an insider, sold 10,771 shares on November 18th at an average price of $71.14, totaling approximately $766,248.94. After this transaction, Collier holds 3,790 shares valued around $269,620.60, indicating a decrease of 73.97% in his position. Additionally, CFO Dan Jedda sold 1,000 shares on September 17th at an average rate of $75.33, amounting to $75,330. Following this sale, he owns 54,267 shares valued at about $4,087,933.11, a 1.81% decrease in his ownership. In total, throughout the last ninety days, insiders have sold 73,096 shares worth $5,653,823, with current insider ownership at 13.98%.

Institutional Inflows and Outflows

Several hedge funds have recently adjusted their holdings in Roku. Sequoia Financial Advisors LLC increased its stake by 6.4% during the second quarter, acquiring an additional 270 shares, bringing its total to 4,519 shares valued at $271,000. Diversified Trust Co also entered a new investment in Roku during the second quarter, valued at $546,000. Wealth Enhancement Advisory Services LLC boosted its ownership by 19.8%, amassing 6,836 shares worth $410,000 after purchasing an extra 1,131 shares. Assenagon Asset Management S.A. raised its stake in Roku by 36.0%, now owning 147,691 shares valued at $8,851,000. Blue Trust Inc. significantly increased its ownership by 3,310.5%, holding 2,592 shares worth $169,000 after acquiring an additional 2,516 shares. Collectively, institutional investors control 86.30% of Roku’s shares.

About Roku

Roku, Inc. is a company that operates a platform for TV streaming both in the United States and internationally, divided into two segments: Platform and Devices. Its streaming platform enables users to access a variety of TV shows, movies, news, sports, and more. The Platform segment focuses on digital advertising, including both direct and programmatic video ads, as well as revenue shares from streaming services and sales of premium subscriptions.

Conclusion

With a mixed outlook from analysts and recent earnings surpassing expectations, the question arises—should investors consider buying Roku now? It may warrant further investigation into its growth potential and market trends.

Roku, Trading, Analysis