Roku (NASDAQ:ROKU) Stock Price Up 2.1% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) shares were up 2.1% during trading on Wednesday . The company traded as high as $78.40 and last traded at $78.20. Approximately 590,852 shares changed hands during trading, a decline of 87% from the average daily volume of 4,413,348 shares. The stock had previously closed at $76.62.

Analysts Set New Price Targets

A number of research analysts have recently commented on ROKU shares. Rosenblatt Securities boosted their price target on shares of Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 price target for the company in a research report on Tuesday, October 1st. Robert W. Baird boosted their price target on shares of Roku from $56.00 to $75.00 and gave the company a “neutral” rating in a research report on Monday, September 30th. Bank of America boosted their price target on shares of Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Finally, Morgan Stanley boosted their price target on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Tuesday, October 29th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and twelve have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $83.95.

Roku Stock Performance

The firm’s 50 day moving average price is $74.12 and its 200 day moving average price is $64.51.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.29. The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company’s quarterly revenue was up 16.5% compared to the same quarter last year. During the same period in the prior year, the firm posted ($2.33) earnings per share. On average, sell-side analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the completion of the sale, the chief executive officer now directly owns 5,020 shares in the company, valued at $376,500. This trade represents a 83.28 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Gilbert Fuchsberg sold 1,693 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total transaction of $109,012.27. Following the completion of the sale, the insider now owns 38,602 shares of the company’s stock, valued at $2,485,582.78. This trade represents a 4.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 69,776 shares of company stock valued at $5,267,305. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Paloma Partners Management Co bought a new position in shares of Roku during the third quarter valued at approximately $394,000. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of Roku during the third quarter valued at approximately $402,000. Kestra Investment Management LLC bought a new position in shares of Roku during the third quarter valued at approximately $329,000. Point72 Hong Kong Ltd increased its stake in shares of Roku by 1,864.0% during the third quarter. Point72 Hong Kong Ltd now owns 57,958 shares of the company’s stock valued at $4,327,000 after purchasing an additional 55,007 shares in the last quarter. Finally, Firsthand Capital Management Inc. increased its position in shares of Roku by 21,328.6% during the third quarter. Firsthand Capital Management Inc. now owns 75,000 shares of the company’s stock valued at $5,600,000 after acquiring an additional 74,650 shares in the last quarter. Institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.