Roku (NASDAQ:ROKU) Trading Up 11.6% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) traded up 11.6% during mid-day trading on Tuesday . The stock traded as high as $77.30 and last traded at $77.05. 8,292,402 shares traded hands during mid-day trading, an increase of 119% from the average session volume of 3,784,015 shares. The stock had previously closed at $69.03.

Analyst Ratings Changes

A number of equities research analysts have issued reports on ROKU shares. Jefferies Financial Group cut their target price on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Macquarie reaffirmed an “outperform” rating and set a $90.00 price target on shares of Roku in a research note on Thursday, October 31st. Rosenblatt Securities upped their price objective on Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Piper Sandler upped their price target on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Finally, Loop Capital boosted their price objective on Roku from $65.00 to $70.00 and gave the stock a “hold” rating in a report on Thursday, October 31st. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $82.62.

Roku Price Performance

The firm has a 50 day moving average of $73.70 and a 200-day moving average of $65.50. The stock has a market capitalization of $11.19 billion, a P/E ratio of -64.21 and a beta of 2.06.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating 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 company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the previous year, the company earned ($2.33) EPS. The firm’s revenue for the quarter was up 16.5% compared to the same quarter last year. As a group, equities analysts expect that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Activity at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the completion of the sale, the chief financial officer now owns 65,555 shares in the company, valued at approximately $4,916,625. The trade was a 1.50 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at $518,940.16. This represents a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 90,240 shares of company stock valued at $6,729,582 over the last ninety days. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently made changes to their positions in the company. SG Americas Securities LLC grew its position in shares of Roku by 238.6% in the 2nd quarter. SG Americas Securities LLC now owns 73,528 shares of the company’s stock valued at $4,407,000 after purchasing an additional 51,815 shares during the period. Kessler Investment Group LLC raised its stake in shares of Roku by 21.8% in the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after purchasing an additional 13,590 shares during the period. Holocene Advisors LP acquired a new position in shares of Roku during the third quarter worth about $129,015,000. Cetera Investment Advisers raised its holdings in shares of Roku by 240.3% in the first quarter. Cetera Investment Advisers now owns 41,805 shares of the company’s stock valued at $2,724,000 after purchasing an additional 29,521 shares during the last quarter. Finally, EULAV Asset Management boosted its stake in shares of Roku by 59.1% during the 3rd quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock worth $13,663,000 after buying an additional 68,000 shares during the last quarter. 86.30% of the stock is owned by institutional investors.

Roku Company Profile

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.