Roku (NASDAQ:ROKU) Trading 0.3% Higher on Better-Than-Expected Earnings

Shares of Roku, Inc. (NASDAQ:ROKU) were up 0.3% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $85.71 and last traded at $85.06. Approximately 2,140,334 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 2,906,844 shares. The stock had previously closed at $84.78.

The company reported ($0.24) EPS for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on ROKU. Rosenblatt Securities reiterated a “neutral” rating and set a $86.00 target price on shares of Roku in a research note on Thursday. Robert W. Baird upgraded shares of Roku from a “neutral” rating to an “outperform” rating and increased their target price for the stock from $70.00 to $90.00 in a research report on Monday, November 18th. Morgan Stanley raised their price target on Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 29th. Piper Sandler boosted their price objective on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Finally, Citizens Jmp raised shares of Roku to a “strong-buy” rating in a report on Tuesday, January 21st. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $93.18.

Insider Buying and Selling at Roku

In related news, CAO Matthew C. Banks sold 8,693 shares of the firm’s 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 transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. This trade represents a 54.48 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Charles Collier sold 10,771 shares of Roku stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the transaction, the insider now owns 3,790 shares of the company’s stock, valued at $269,620.60. This trade represents a 73.97 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 97,885 shares of company stock valued at $7,911,162. 13.98% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. FMR LLC lifted its stake in Roku by 31.7% during the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Roku by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock valued at $910,597,000 after purchasing an additional 185,676 shares in the last quarter. Marshall Wace LLP lifted its position in shares of Roku by 663.9% during the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in Roku by 10.5% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock worth $168,734,000 after purchasing an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock worth $159,353,000 after purchasing an additional 56,820 shares in the last quarter. Institutional investors own 86.30% of the company’s stock.

Roku Trading Up 14.1 %

The stock has a market cap of $14.38 billion, a P/E ratio of -82.56 and a beta of 2.05. The company’s 50-day simple moving average is $80.56 and its 200 day simple moving average is $73.65.

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.