Roku (NASDAQ:ROKU) Trading Up 6.4% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price was up 6.4% during mid-day trading on Thursday . The company traded as high as $84.92 and last traded at $83.00. Approximately 5,495,623 shares traded hands during trading, an increase of 70% from the average daily volume of 3,238,221 shares. The stock had previously closed at $77.99.

Analysts Set New Price Targets

A number of research analysts have issued reports on ROKU shares. Moffett Nathanson lowered shares of Roku from a “neutral” rating to a “sell” rating and set a $55.00 target price on the stock. in a research report on Friday. Bank of America increased their target price on shares of Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. Citigroup increased their target price on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Rosenblatt Securities increased their price target on shares of Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Finally, Wells Fargo & Company increased their price target on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 31st. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $82.62.

Roku Price Performance

The company has a market cap of $11.50 billion, a price-to-earnings ratio of -65.99 and a beta of 2.05. The business’s fifty day moving average price is $75.99 and its 200 day moving average price is $69.89.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS 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 net margin of 4.42% and a negative return on equity of 7.22%. Roku’s revenue was up 16.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($2.33) earnings per share. As a group, equities research analysts anticipate that Roku, Inc. will post -1.1 EPS for the current year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction on Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total value of $76,250.00. Following the transaction, the chief financial officer now owns 53,267 shares in the company, valued at $4,061,608.75. The trade was a 1.84 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the completion of the transaction, the chief executive officer now owns 26,538 shares in the company, valued at approximately $2,193,100.32. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 48,095 shares of company stock worth $3,731,038. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently bought and sold shares of ROKU. Raelipskie Partnership bought a new stake in shares of Roku during the third quarter worth about $32,000. EverSource Wealth Advisors LLC increased its position in shares of Roku by 123.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after purchasing an additional 375 shares during the last quarter. Future Financial Wealth Managment LLC purchased a new stake in shares of Roku during the 3rd quarter valued at $43,000. GS Investments Inc. increased its position in shares of Roku by 33.4% during the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after purchasing an additional 147 shares during the last quarter. Finally, Cedar Wealth Management LLC purchased a new stake in shares of Roku during the 2nd quarter valued at $48,000. 86.30% of the stock is owned by 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.