Roku (NASDAQ:ROKU) Trading 12.1% Higher – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 12.1% on Monday . The company traded as high as $67.60 and last traded at $68.33. 2,568,719 shares changed hands during trading, a decline of 32% from the average session volume of 3,776,377 shares. The stock had previously closed at $60.93.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Guggenheim restated a “buy” rating and set a $100.00 target price on shares of Roku in a report on Friday, May 2nd. Citigroup reduced their target price on shares of Roku from $81.00 to $68.00 and set a “neutral” rating for the company in a report on Tuesday, May 6th. JMP Securities reaffirmed a “market outperform” rating and issued a $95.00 price objective on shares of Roku in a research note on Friday, May 2nd. Needham & Company LLC reaffirmed a “buy” rating and issued a $88.50 price objective on shares of Roku in a research note on Monday. Finally, UBS Group cut their target price on shares of Roku from $90.00 to $72.00 and set a “neutral” rating for the company in a research report on Tuesday, April 15th. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, Roku has a consensus rating of “Moderate Buy” and a consensus price target of $87.93.

Roku Stock Performance

The firm’s 50-day moving average price is $66.49 and its two-hundred day moving average price is $74.60. The firm has a market capitalization of $10.04 billion, a price-to-earnings ratio of -77.28 and a beta of 2.06.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same period in the previous year, the business earned ($0.35) EPS. The firm’s revenue was up 15.8% on a year-over-year basis. As a group, equities research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current year.

Insiders Place Their Bets

In other Roku news, insider Charles Collier sold 7,181 shares of the business’s stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total value of $561,913.25. Following the completion of the transaction, the insider now directly owns 7,380 shares of the company’s stock, valued at approximately $577,485. The trade was a 49.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 4,600 shares of the firm’s stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the transaction, the chief executive officer now owns 6,243 shares in the company, valued at approximately $468,225. This represents a 42.42% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 47,111 shares of company stock valued at $4,377,112. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently modified their holdings of the business. Connor Clark & Lunn Investment Management Ltd. raised its stake in shares of Roku by 10.5% during the first quarter. Connor Clark & Lunn Investment Management Ltd. now owns 656,055 shares of the company’s stock worth $46,213,000 after buying an additional 62,266 shares during the last quarter. Forsta AP Fonden bought a new stake in shares of Roku during the first quarter worth approximately $1,838,000. Swiss National Bank increased its stake in Roku by 0.3% in the first quarter. Swiss National Bank now owns 360,700 shares of the company’s stock valued at $25,408,000 after purchasing an additional 1,000 shares in the last quarter. Deutsche Bank AG increased its stake in Roku by 20.1% in the first quarter. Deutsche Bank AG now owns 398,438 shares of the company’s stock valued at $28,066,000 after purchasing an additional 66,756 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in Roku by 3.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,028,332 shares of the company’s stock valued at $72,436,000 after purchasing an additional 37,465 shares in 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.