Roku (NASDAQ:ROKU) Trading Up 4.5% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 4.5% during trading on Monday . The stock traded as high as $72.72 and last traded at $71.96. Approximately 1,204,554 shares changed hands during mid-day trading, a decline of 73% from the average daily volume of 4,405,465 shares. The stock had previously closed at $68.87.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ROKU. Bank of America lifted their price target on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, September 30th. Wedbush boosted their target price on Roku from $75.00 to $85.00 and gave the stock an “outperform” rating in a research note on Friday, October 25th. Jefferies Financial Group dropped their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Macquarie reissued an “outperform” rating and set a $90.00 price objective on shares of Roku in a report on Thursday, October 31st. Finally, Loop Capital upped their target price on shares of Roku from $65.00 to $70.00 and gave the company a “hold” rating in a report on Thursday, October 31st. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and an average target price of $84.67.

Roku Stock Down 0.6 %

The firm’s 50 day moving average is $74.53 and its 200-day moving average is $64.84. The firm has a market cap of $10.69 billion, a PE ratio of -61.34 and a beta of 2.07.

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

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on 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 transaction, the chief executive officer now owns 5,020 shares in the company, valued at $376,500. This trade represents a 83.28 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the sale, the chief financial officer now owns 65,555 shares of the company’s stock, valued at approximately $4,916,625. The trade was a 1.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 90,240 shares of company stock valued at $6,729,582. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of large investors have recently modified their holdings of the company. FMR LLC increased its position in Roku by 1.7% during the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after purchasing an additional 244,793 shares in the last quarter. ARK Investment Management LLC grew its stake in Roku by 1.3% during the second quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after buying an additional 159,785 shares during the period. Vanguard Group Inc. increased its position in shares of Roku by 0.8% in the first quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock worth $778,560,000 after acquiring an additional 92,658 shares in the last quarter. Holocene Advisors LP purchased a new position in shares of Roku in the 3rd quarter valued at $129,015,000. Finally, Westfield Capital Management Co. LP lifted its holdings in shares of Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after acquiring an additional 856,401 shares in the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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.