Roku (NASDAQ:ROKU) Shares Rise 0.2% - Is it Still a Good Investment?

On Tuesday, shares of Roku, Inc. (NASDAQ:ROKU) experienced a slight increase of 0.2% during midday trading. The stock reached a high of $79.37 before closing at $78.98. During this session, approximately 224,264 shares were traded, which is notably lower than the average daily volume of 4,347,896 shares. This decrease in trading volume reflects a significant drop from usual activity, as the stock had closed at $78.80 on the previous trading day.

Recent Analyst Ratings

Several analysts have updated their ratings on Roku shares. Moffett Nathanson upgraded the stock from a "sell" to a "neutral" rating, with a price target of $80.00, announced on October 1st. Robert W. Baird also raised their outlook, moving Roku from a "neutral" to an "outperform" rating and increasing their price target from $70.00 to $90.00 on November 18th. Another notable update came from Needham & Company LLC, which maintained a "buy" rating and set a price target of $100.00 on December 4th. Meanwhile, Piper Sandler increased their price target from $60.00 to $75.00 while retaining a "neutral" rating. UBS Group initiated coverage on Roku with a "neutral" rating and a target price of $73.00. Overall, the consensus rating for Roku is "Moderate Buy," with an average target price of $83.81 based on the analysis of a diverse group of equity research professionals.

Stock Performance Overview

Roku's stock has a 50-day moving average of $75.37 and a 200-day moving average of $67.99. Currently, the company holds a market capitalization of $11.55 billion, a negative PE ratio of -66.30, and a beta of 2.06, indicating greater volatility compared to the market.

Roku announced its most recent quarterly earnings on October 30th, reporting earnings per share of ($0.06), surpassing analysts' expectations of ($0.35) by $0.29. With revenue of $1.06 billion for the quarter, the results exceeded the predicted $1.02 billion. Year over year, Roku saw a revenue increase of 16.5%. In the same quarter a year prior, the company reported earnings of ($2.33) per share. Analysts are projecting a total of -1.1 EPS for Roku for the current fiscal year.

Insider Activity

There were some key insider transactions reported at Roku. CFO Dan Jedda sold 1,000 shares on October 15th, at an average price of $76.25, totaling $76,250. After this sale, he retains 53,267 shares valued at approximately $4.06 million. This sale marked a 1.84% decrease in his ownership. Additionally, CEO Anthony Wood sold 25,000 shares on October 10th for about $1.93 million. After this transaction, he holds only 5,020 shares, indicating an 83.28% decrease in his stake within the company. Over the last three months, insiders have sold 73,096 shares amounting to approximately $5.66 million, with insiders owning about 13.98% of Roku’s stock.

Institutional Holdings

Recently, institutional investors have been adjusting their positions in Roku. Franklin Resources Inc. increased its holdings by 14.5% during the third quarter, obtaining an additional 10,416 shares. Sender Co & Partners Inc. invested about $827,000 in Roku during the same period. M&T Bank Corp also increased their holdings by 19.1%, bringing their total to 7,024 shares valued at around $525,000. Other stakeholders, like Nomura Asset Management Co. Ltd., have also added to their positions. Hedge funds and institutions now control about 86.30% of Roku’s stock.

About Roku

Roku, Inc. operates a streaming platform both in the United States and internationally. It has two primary segments: Platform and Devices. Roku’s platform helps users find and access a wide range of content including TV shows, movies, sports, and news. Additionally, the Platform segment provides digital advertising and various services related to streaming, including revenue sharing from subscriptions.

Conclusion: Should You Invest in Roku?

Investors are advised to consider all recent developments surrounding Roku. With a "Moderate Buy" rating from analysts, potential investors might want to explore further before committing their funds. Analyzing the stock’s trends and expert forecasts could be beneficial, especially when deciding whether to invest.

Roku, NASDAQ, Investment