Roku (NASDAQ:ROKU) Trading Up 1.7% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) shot up 1.7% during mid-day trading on Wednesday . The company traded as high as $141.80 and last traded at $140.51. Approximately 5,046,321 shares traded hands during trading, an increase of 30% from the average daily volume of 3,881,732 shares. The stock had previously closed at $138.14.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Evercore downgraded shares of Roku from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 15th. Oppenheimer downgraded shares of Roku from an “outperform” rating to a “market perform” rating in a report on Monday, June 15th. UBS Group set a $160.00 price target on shares of Roku in a research report on Monday, June 15th. William Blair cut shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. Finally, Jefferies Financial Group lowered shares of Roku from a “buy” rating to a “hold” rating and set a $160.00 price objective for the company. in a report on Monday, June 15th. Eleven investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $153.71.

Roku Price Performance

The stock has a fifty day moving average of $127.74 and a 200-day moving average of $110.09. The firm has a market capitalization of $21.00 billion, a P/E ratio of 107.09 and a beta of 2.01.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.23. The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. Roku’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the prior year, the business earned ($0.19) earnings per share. As a group, analysts forecast that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Dan Jedda sold 7,000 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $143.87, for a total value of $1,007,090.00. Following the transaction, the chief financial officer owned 79,963 shares in the company, valued at $11,504,276.81. This trade represents a 8.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 10,194 shares of Roku stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $144.00, for a total value of $1,467,936.00. Following the completion of the sale, the insider owned 19,185 shares of the company’s stock, valued at approximately $2,762,640. The trade was a 34.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 713,020 shares of company stock worth $81,860,846. 13.45% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ROKU. AQR Capital Management LLC raised its stake in shares of Roku by 10.6% during the fourth quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after buying an additional 274,024 shares during the last quarter. Geode Capital Management LLC raised its position in shares of Roku by 7.3% during the 4th quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock valued at $267,389,000 after acquiring an additional 168,214 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after purchasing an additional 1,419,772 shares during the period. Holocene Advisors LP increased its holdings in Roku by 352.3% in the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after purchasing an additional 1,285,585 shares during the last quarter. Finally, Renaissance Technologies LLC increased its holdings in Roku by 22.8% in the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company’s stock valued at $148,090,000 after purchasing an additional 290,200 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.