Roku (NASDAQ:ROKU) Shares Gap Up – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU) shares gapped up prior to trading on Monday . The stock had previously closed at $74.41, but opened at $81.32. Roku shares last traded at $82.15, with a volume of 2,915,999 shares traded.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ROKU. Compass Point initiated coverage on Roku in a research note on Sunday, March 23rd. They set a “buy” rating on the stock. Benchmark reiterated a “buy” rating and set a $130.00 target price on shares of Roku in a research report on Friday, May 2nd. Wells Fargo & Company reduced their target price on shares of Roku from $129.00 to $93.00 and set an “overweight” rating on the stock in a report on Monday, April 28th. Wedbush restated an “outperform” rating and issued a $100.00 price target on shares of Roku in a research report on Monday. Finally, Bank of America lifted their price target on shares of Roku from $85.00 to $100.00 and gave the stock a “buy” rating in a report on Tuesday. One analyst has rated the stock with a sell rating, seven have issued a hold rating, sixteen have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $89.24.

Roku Stock Performance

The firm’s 50 day moving average price is $68.33 and its two-hundred day moving average price is $75.01. The company has a market cap of $11.77 billion, a P/E ratio of -110.45 and a beta of 2.09.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping analysts’ consensus estimates of ($0.27) by $0.08. Roku had a negative net margin of 2.49% and a negative return on equity of 4.29%. The business had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same period last year, the company posted ($0.35) earnings per share. The business’s quarterly revenue was up 15.8% on a year-over-year basis. As a group, analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 4,600 shares of the company’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 sale, the chief executive officer now owns 6,243 shares in the company, valued at $468,225. This represents a 42.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Mai Fyfield sold 914 shares of the company’s stock in a transaction on Friday, June 6th. The stock was sold at an average price of $78.50, for a total transaction of $71,749.00. Following the completion of the sale, the director now owns 4,374 shares of the company’s stock, valued at approximately $343,359. The trade was a 17.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 64,737 shares of company stock valued at $4,987,114 in the last three months. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several hedge funds have recently modified their holdings of the company. Garde Capital Inc. purchased a new stake in shares of Roku during the first quarter valued at approximately $25,000. Vision Financial Markets LLC purchased a new stake in shares of Roku during the 4th quarter valued at $30,000. Beaird Harris Wealth Management LLC bought a new stake in shares of Roku during the 1st quarter worth $30,000. Banque Transatlantique SA purchased a new position in shares of Roku in the 1st quarter worth about $28,000. Finally, Golden State Wealth Management LLC boosted its holdings in shares of Roku by 125.4% in the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock worth $31,000 after buying an additional 247 shares during the last quarter. Institutional investors own 86.30% of the company’s stock.

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.