Roku (NASDAQ:ROKU) Trading Up 1.1% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) shares shot up 1.1% during mid-day trading on Thursday . The stock traded as high as $76.14 and last traded at $75.19. 470,928 shares changed hands during trading, a decline of 89% from the average session volume of 4,310,560 shares. The stock had previously closed at $74.34.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on ROKU shares. Citigroup increased their price objective on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. UBS Group began coverage on Roku in a report on Friday, November 22nd. They set a “neutral” rating and a $73.00 price target on the stock. Macquarie restated an “outperform” rating and issued a $90.00 price objective on shares of Roku in a research note on Thursday, October 31st. Wells Fargo & Company lifted their target price on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a report on Thursday, October 31st. Finally, Morgan Stanley upped their price target on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a report on Tuesday, October 29th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Stock Down 0.7 %

The company has a market capitalization of $10.72 billion, a price-to-earnings ratio of -61.52 and a beta of 2.06. The company’s fifty day simple moving average is $75.34 and its two-hundred day simple moving average is $68.92.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share 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 during the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the prior year, the company earned ($2.33) earnings per share. The business’s quarterly revenue was up 16.5% compared to the same quarter last year. Equities research analysts expect that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Activity

In related news, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the sale, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, October 10th. The shares were sold at an average price of $77.20, for a total value of $1,930,000.00. Following the transaction, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at $387,544. This trade represents a 83.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 72,885 shares of company stock worth $5,645,259 over the last ninety days. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several large investors have recently made changes to their positions in the stock. Raelipskie Partnership acquired a new stake in Roku in the third quarter valued at $32,000. EverSource Wealth Advisors LLC raised its holdings in shares of Roku by 123.4% in 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 period. Future Financial Wealth Managment LLC acquired a new stake in Roku in the 3rd quarter valued at about $43,000. GS Investments Inc. grew its holdings in Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after purchasing an additional 147 shares during the period. Finally, Cedar Wealth Management LLC acquired a new position in Roku during the second quarter worth approximately $48,000. Institutional investors and hedge funds 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.