Roku (NASDAQ:ROKU) Trading 11.6% Higher – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU)’s share price traded up 11.6% during trading on Tuesday . The company traded as high as $77.30 and last traded at $77.05. 8,292,402 shares changed hands during trading, an increase of 119% from the average session volume of 3,784,015 shares. The stock had previously closed at $69.03.

Analysts Set New Price Targets

Several research firms have issued reports on ROKU. JPMorgan Chase & Co. upped their price objective on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Wolfe Research upgraded shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective for the company in a research report on Thursday, September 12th. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 target price on shares of Roku in a research report on Thursday, October 31st. Wells Fargo & Company upped their price objective on Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a report on Thursday, October 31st. Finally, Moffett Nathanson upgraded Roku from a “sell” rating to a “neutral” rating and set a $80.00 price target for the company in a research note on Tuesday, October 1st. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $82.62.

Roku Price Performance

The firm has a fifty day moving average of $73.70 and a two-hundred day moving average of $65.50. The stock has a market capitalization of $11.19 billion, a P/E ratio of -64.21 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period last year, the business earned ($2.33) EPS. Roku’s revenue for the quarter was up 16.5% on a year-over-year basis. As a group, sell-side analysts forecast that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In related news, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total transaction of $109,012.27. Following the transaction, the insider now owns 38,602 shares in the company, valued at approximately $2,485,582.78. This trade represents a 4.20 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Matthew C. Banks sold 8,693 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now directly owns 7,264 shares in the company, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 90,240 shares of company stock valued at $6,729,582. 13.98% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of ROKU. Raelipskie Partnership purchased a new position in Roku in the third quarter valued at $32,000. Future Financial Wealth Managment LLC purchased a new position in shares of Roku in the 3rd quarter valued at about $43,000. GS Investments Inc. grew its position in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Roku by 123.4% during the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after buying an additional 375 shares during the period. Finally, Cedar Wealth Management LLC acquired a new stake in Roku in the second quarter valued at approximately $48,000. Hedge funds and other 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.