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

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

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ROKU. Robert W. Baird upgraded shares of Roku from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $70.00 to $90.00 in a report on Monday, November 18th. Wedbush reissued an “outperform” rating and set a $100.00 price objective (up from $85.00) on shares of Roku in a research note on Friday, December 6th. Bank of America boosted their target price on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 price target on shares of Roku in a research report on Wednesday, December 4th. Finally, Rosenblatt Securities boosted their price objective on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a report on Thursday, October 31st. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Roku presently has an average rating of “Moderate Buy” and a consensus price target of $83.81.

Roku Stock Up 3.9 %

The stock has a market cap of $11.24 billion, a P/E ratio of -64.48 and a beta of 2.05. The firm’s 50-day moving average is $75.39 and its two-hundred day moving average is $69.12.

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 analysts’ consensus estimates of ($0.35) by $0.29. The business had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. Roku’s revenue for the quarter was up 16.5% on a year-over-year basis. During the same quarter last year, the firm earned ($2.33) EPS. Analysts anticipate that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Transactions at Roku

In related news, CAO Matthew C. Banks sold 8,693 shares of Roku 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 transaction, the chief accounting officer now owns 7,264 shares in the company, valued at $518,940.16. This trade represents a 54.48 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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 sale, the chief executive officer now owns 5,020 shares of the company’s stock, valued at approximately $387,544. The trade was a 83.28 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 73,095 shares of company stock worth $5,661,038. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Hedge funds have recently bought and sold shares of the stock. Arizona State Retirement System increased its stake in Roku by 0.7% during the second quarter. Arizona State Retirement System now owns 34,656 shares of the company’s stock valued at $2,077,000 after acquiring an additional 251 shares during the period. Koss Olinger Consulting LLC bought a new stake in shares of Roku during the second quarter valued at approximately $2,997,000. Choreo LLC acquired a new position in shares of Roku in the second quarter valued at $324,000. Andra AP fonden raised its stake in shares of Roku by 116.6% in the second quarter. Andra AP fonden now owns 293,900 shares of the company’s stock valued at $17,613,000 after purchasing an additional 158,200 shares in the last quarter. Finally, American Century Companies Inc. lifted its position in Roku by 3.5% in the second quarter. American Century Companies Inc. now owns 25,847 shares of the company’s stock worth $1,549,000 after purchasing an additional 877 shares during the period. 86.30% of the stock is owned by institutional investors.

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.