Roku (NASDAQ:ROKU) Trading Up 4.5% – What’s Next?

Shares of Roku, Inc. (NASDAQ:ROKU) were up 4.5% on Monday . The stock traded as high as $81.48 and last traded at $80.89. Approximately 974,046 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 1,791,405 shares. The stock had previously closed at $77.38.

Wall Street Analyst Weigh In

ROKU has been the subject of several research reports. Rosenblatt Securities lifted their price target on Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. Jefferies Financial Group decreased their target price on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research report on Friday, November 1st. Morgan Stanley increased their price target on shares of Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a research note on Tuesday, October 29th. UBS Group assumed coverage on shares of Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective for the company. Finally, Robert W. Baird upgraded Roku from a “neutral” rating to an “outperform” rating and raised their target price for the company from $70.00 to $90.00 in a report on Monday, November 18th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Roku has a consensus rating of “Moderate Buy” and a consensus price target of $83.81.

Roku Price Performance

The stock has a market capitalization of $12.05 billion, a P/E ratio of -69.17 and a beta of 2.05. The company’s 50 day simple moving average is $75.50 and its two-hundred day simple moving average is $69.71.

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 firm had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business’s revenue was up 16.5% on a year-over-year basis. During the same period last year, the firm posted ($2.33) EPS. On average, research analysts anticipate that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the company’s 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 owns 5,020 shares of the company’s stock, valued at approximately $387,544. This represents a 83.28 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction 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 directly 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 disclosure for this sale can be found here. Insiders have sold a total of 73,095 shares of company stock worth $5,661,038 in the last 90 days. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Holocene Advisors LP acquired a new stake in shares of Roku during the 3rd quarter worth approximately $129,015,000. Westfield Capital Management Co. LP grew its holdings in Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after acquiring an additional 856,401 shares during the period. Point72 Asset Management L.P. raised its position in shares of Roku by 352.5% during the 3rd 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. JAT Capital Mgmt LP lifted its stake in shares of Roku by 470.2% in the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after purchasing an additional 445,777 shares during the period. Finally, FMR LLC boosted its position in shares of Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after purchasing an additional 244,793 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.