Roku (NASDAQ:ROKU) Stock Price Up 0.4% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 0.4% during trading on Monday . The company traded as high as $83.65 and last traded at $83.33. Approximately 536,810 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 4,387,953 shares. The stock had previously closed at $82.99.

Analyst Upgrades and Downgrades

ROKU has been the topic of several recent research reports. Needham & Company LLC restated a “buy” rating and set a $100.00 target price on shares of Roku in a research report on Wednesday, December 4th. Macquarie reissued an “outperform” rating and issued a $90.00 price target on shares of Roku in a research note on Thursday, October 31st. Citigroup raised their price objective on shares of Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research report on Wednesday, September 25th. JPMorgan Chase & Co. increased their target price on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Finally, Jefferies Financial Group dropped their price target on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Trading Down 5.9 %

The firm has a 50 day moving average of $75.24 and a two-hundred day moving average of $67.40. The company has a market cap of $11.40 billion, a PE ratio of -65.41 and a beta of 2.06.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the prior year, the company posted ($2.33) earnings per share. The business’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, research analysts forecast that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity

In other news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total transaction 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 represents a 83.28 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction dated Monday, November 18th. The shares were 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 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 have sold a total of 73,096 shares of company stock valued at $5,661,223 over the last ninety days. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several large investors have recently added to or reduced their stakes in the company. Holocene Advisors LP purchased a new position in shares of Roku in the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP lifted its holdings in Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares in the last quarter. Point72 Asset Management L.P. boosted its stake in Roku by 352.5% in the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after purchasing an additional 507,643 shares during the period. JAT Capital Mgmt LP grew its holdings in Roku by 470.2% during the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after buying an additional 445,777 shares in the last quarter. Finally, FMR LLC raised its position in shares of Roku by 1.7% during the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after buying an additional 244,793 shares during 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.