Roku (NASDAQ:ROKU) Shares Up 2.4% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 2.4% on Wednesday . The company traded as high as $57.60 and last traded at $56.45. 1,165,563 shares changed hands during trading, a decline of 69% from the average session volume of 3,749,128 shares. The stock had previously closed at $55.10.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Rosenblatt Securities reiterated a “neutral” rating and issued a $86.00 target price on shares of Roku in a research note on Thursday, February 13th. UBS Group upgraded Roku from a “hold” rating to a “strong-buy” rating in a research note on Thursday, March 27th. Citigroup upgraded shares of Roku from a “neutral” rating to an “outperform” rating in a research note on Sunday, March 23rd. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 price objective on the stock in a research note on Tuesday, March 4th. Finally, Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $74.00 to $129.00 in a report on Friday, February 14th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, eighteen have issued a buy rating and three have given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Roku presently has an average rating of “Moderate Buy” and a consensus price target of $96.70.

Roku Stock Up 18.1 %

The company has a market capitalization of $9.50 billion, a P/E ratio of -72.83 and a beta of 2.17. The firm has a 50-day moving average price of $78.09 and a two-hundred day moving average price of $76.95.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. On average, analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity

In other news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Friday, January 10th. The shares were sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the completion of the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,116,936.26. This represents a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, March 20th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the transaction, the chief financial officer now directly owns 68,843 shares of the company’s stock, valued at approximately $5,163,225. This trade represents a 1.43 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 97,905 shares of company stock valued at $8,632,306. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. National Bank of Canada FI lifted its holdings in Roku by 11,626.3% during the 3rd quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock valued at $11,259,000 after purchasing an additional 149,514 shares during the last quarter. XTX Topco Ltd boosted its stake in shares of Roku by 274.0% in the third quarter. XTX Topco Ltd now owns 14,834 shares of the company’s stock valued at $1,108,000 after buying an additional 10,868 shares during the period. MML Investors Services LLC increased its holdings in Roku by 9.8% in the 3rd quarter. MML Investors Services LLC now owns 10,592 shares of the company’s stock valued at $791,000 after buying an additional 948 shares during the period. Nomura Asset Management Co. Ltd. raised its holdings in shares of Roku by 14.1% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 36,420 shares of the company’s stock worth $2,719,000 after buying an additional 4,500 shares in the last quarter. Finally, M&T Bank Corp lifted its stake in Roku by 19.1% in the 3rd quarter. M&T Bank Corp now owns 7,024 shares of the company’s stock valued at $525,000 after purchasing an additional 1,126 shares during the last quarter. 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.