Roku (NASDAQ:ROKU) Trading Up 5.6% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s share price shot up 5.6% during mid-day trading on Tuesday . The stock traded as high as $80.70 and last traded at $80.11. 1,207,800 shares were traded during trading, a decline of 56% from the average session volume of 2,753,423 shares. The stock had previously closed at $75.89.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ROKU. Bank of America upped their target price on shares of Roku from $75.00 to $90.00 and gave the company a “buy” rating in a report on Monday, September 30th. Citigroup lifted their target price on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Moffett Nathanson downgraded Roku from a “neutral” rating to a “sell” rating and set a $55.00 price target for the company. in a report on Friday, January 10th. UBS Group assumed coverage on shares of Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective on the stock. Finally, Rosenblatt Securities lifted their target price on shares of Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Three research 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 stock. Based on data from MarketBeat.com, Roku has a consensus rating of “Hold” and a consensus target price of $83.18.

Roku Stock Performance

The company has a market capitalization of $11.64 billion, a PE ratio of -66.87 and a beta of 2.05. The stock’s fifty day simple moving average is $76.72 and its 200-day simple moving average is $70.88.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.29. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The firm had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the previous year, the company earned ($2.33) EPS. Roku’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, equities analysts anticipate that Roku, Inc. will post -1.09 EPS for the current year.

Insider Buying and Selling at Roku

In related news, insider Charles Collier sold 10,771 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the transaction, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. This trade represents a 73.97 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the transaction, the chief accounting officer now directly owns 7,264 shares in the company, valued at approximately $518,940.16. This represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 73,095 shares of company stock worth $5,726,218 in the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roku

Several institutional investors and hedge funds have recently modified their holdings of the stock. Holocene Advisors LP purchased a new position in shares of Roku during the 3rd quarter valued at approximately $129,015,000. Westfield Capital Management Co. LP boosted its stake in 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 during the last quarter. Point72 Asset Management L.P. grew its holdings in Roku by 352.5% during the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after acquiring an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP lifted its position in shares of Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after purchasing an additional 445,777 shares during the last quarter. Finally, FMR LLC grew its stake in Roku by 1.7% in the third 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. Hedge funds and other 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.