Roku (NASDAQ:ROKU) Trading 0.6% Higher – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price shot up 0.6% during trading on Tuesday . The company traded as high as $75.87 and last traded at $75.37. 270,091 shares traded hands during mid-day trading, a decline of 94% from the average session volume of 4,304,868 shares. The stock had previously closed at $74.89.

Analyst Ratings Changes

A number of research firms have commented on ROKU. Rosenblatt Securities boosted their price target on shares of Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Morgan Stanley boosted their price target on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Tuesday, October 29th. Needham & Company LLC restated a “buy” rating and issued a $100.00 price target on shares of Roku in a research report on Wednesday, December 4th. Macquarie restated an “outperform” rating and issued a $90.00 price target on shares of Roku in a research report on Thursday, October 31st. Finally, Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and boosted their target price for the stock from $70.00 to $90.00 in a research note on Monday, November 18th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Roku has a consensus rating of “Moderate Buy” and an average target price of $83.81.

Roku Stock Down 0.7 %

The company has a market cap of $10.79 billion, a price-to-earnings ratio of -61.95 and a beta of 2.06. The company’s fifty day moving average price is $75.34 and its two-hundred day moving average price 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. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business’s quarterly revenue was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($2.33) earnings per share. On average, equities research analysts predict that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Charles Collier sold 10,771 shares of the stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total transaction of $766,248.94. Following the completion of the transaction, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. This represents a 73.97 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. The trade was a 54.48 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 72,885 shares of company stock worth $5,645,259. 13.98% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in ROKU. FMR LLC lifted its stake in Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after acquiring an additional 244,793 shares during the last quarter. Holocene Advisors LP acquired a new stake in Roku in the third quarter valued at $129,015,000. Westfield Capital Management Co. LP lifted its stake in Roku by 126.1% in the third 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. Charles Schwab Investment Management Inc. lifted its stake in Roku by 3.2% in the third quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock valued at $71,373,000 after acquiring an additional 30,038 shares during the last quarter. Finally, Point72 Asset Management L.P. lifted its stake in Roku by 352.5% in the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after acquiring an additional 507,643 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.