Roku (NASDAQ:ROKU) Stock Price Up 3.2% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) shares rose 3.2% during trading on Wednesday . The company traded as high as $78.54 and last traded at $77.20. Approximately 522,545 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 2,828,157 shares. The stock had previously closed at $74.80.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Loop Capital raised their price objective on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a report on Monday, December 9th. Moffett Nathanson lowered Roku from a “neutral” rating to a “sell” rating and set a $55.00 target price for the company. in a research note on Friday, January 10th. Wells Fargo & Company lifted their price target on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 31st. Finally, UBS Group initiated coverage on shares of Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective for the company. Three analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $82.62.

Roku Stock Up 1.0 %

The firm’s fifty day moving average is $76.70 and its two-hundred day moving average is $70.57. The firm has a market cap of $11.02 billion, a P/E ratio of -63.24 and a beta of 2.05.

Roku (NASDAQ:ROKU) last announced its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating 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 firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same quarter in the previous year, the firm posted ($2.33) EPS. The company’s revenue for the quarter was up 16.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Roku, Inc. will post -1.09 EPS for the current year.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total value of $2,066,000.00. Following the sale, the chief executive officer now owns 26,538 shares in the company, valued at approximately $2,193,100.32. This represents a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $82.73, for a total transaction of $82,730.00. Following the transaction, the chief financial officer now owns 64,555 shares of the company’s stock, valued at $5,340,635.15. The trade was a 1.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 73,095 shares of company stock worth $5,726,218. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently modified their holdings of the stock. Raelipskie Partnership bought a new position in Roku in the 3rd quarter worth about $32,000. Future Financial Wealth Managment LLC bought a new position in shares of Roku in the third quarter worth approximately $43,000. GS Investments Inc. grew its holdings in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after buying an additional 147 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in shares of Roku by 123.4% during the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after acquiring an additional 375 shares in the last quarter. Finally, Cedar Wealth Management LLC purchased a new position in Roku in the 2nd quarter worth approximately $48,000. 86.30% of the stock is currently owned by institutional investors.

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.