Roku (NASDAQ:ROKU) Trading Up 1% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) rose 1% during trading on Friday . The company traded as high as $75.63 and last traded at $75.24. Approximately 452,325 shares changed hands during trading, a decline of 61% from the average daily volume of 1,165,545 shares. The stock had previously closed at $74.49.

Analysts Set New Price Targets

ROKU has been the subject of several research reports. Wedbush restated an “outperform” rating and set a $100.00 price target (up from $85.00) on shares of Roku in a report on Friday, December 6th. Piper Sandler boosted 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. JPMorgan Chase & Co. increased their price objective on Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a report on Thursday, October 10th. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price on the stock in a research report on Tuesday, October 1st. Finally, Rosenblatt Securities boosted their price target on Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Price Performance

The business has a 50 day moving average of $75.35 and a 200 day moving average of $68.96. The firm has a market capitalization of $11.01 billion, a price-to-earnings ratio of -63.17 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced 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. 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 quarter last year, the company earned ($2.33) earnings per share. The company’s revenue for the quarter was up 16.5% compared to the same quarter last year. On average, sell-side analysts forecast that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the chief financial officer now owns 53,267 shares of the company’s stock, valued at $4,061,608.75. This trade represents a 1.84 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction on 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 owns 7,264 shares in the company, valued at $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 72,885 shares of company stock valued at $5,645,259. 13.98% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Raelipskie Partnership acquired a new position in Roku in the third quarter valued at approximately $32,000. EverSource Wealth Advisors LLC increased its holdings in Roku by 123.4% in the second 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 acquired a new position in Roku in the third quarter valued at about $43,000. GS Investments Inc. boosted 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 buying an additional 147 shares during the last quarter. Finally, Cedar Wealth Management LLC acquired a new position in shares of Roku during the 2nd quarter worth about $48,000. 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.