Roku (NASDAQ:ROKU) Stock Price Up 1.5% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) shot up 1.5% during mid-day trading on Wednesday . The company traded as high as $104.66 and last traded at $104.26. 2,751,589 shares changed hands during mid-day trading, a decline of 10% from the average session volume of 3,048,377 shares. The stock had previously closed at $102.75.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ROKU. Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 target price on shares of Roku in a report on Wednesday, October 1st. Wedbush boosted their price target on Roku from $115.00 to $130.00 and gave the company an “outperform” rating in a report on Thursday, December 11th. Citizens Jmp reaffirmed a “market outperform” rating and set a $145.00 target price on shares of Roku in a report on Tuesday, December 2nd. Piper Sandler raised shares of Roku from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $88.00 to $135.00 in a report on Monday, November 3rd. Finally, Bank of America upped their price objective on shares of Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. Twenty-two analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $118.79.

Roku Price Performance

The stock has a 50 day simple moving average of $104.20 and a two-hundred day simple moving average of $98.35. The company has a market cap of $15.40 billion, a price-to-earnings ratio of -521.27 and a beta of 1.95.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.09. The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. Roku’s revenue was up 14.0% on a year-over-year basis. During the same period in the previous year, the business posted ($0.06) EPS. As a group, research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Transactions at Roku

In other Roku news, CFO Dan Jedda sold 3,000 shares of the company’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $107.56, for a total value of $322,680.00. Following the transaction, the chief financial officer owned 87,267 shares of the company’s stock, valued at $9,386,438.52. This represents a 3.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CAO Matthew C. Banks sold 729 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $109.04, for a total transaction of $79,490.16. Following the completion of the transaction, the chief accounting officer owned 5,825 shares in the company, valued at approximately $635,158. This represents a 11.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 393,282 shares of company stock worth $42,591,859 in the last 90 days. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Blue Trust Inc. boosted its stake in shares of Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares during the period. Aventura Private Wealth LLC purchased a new position in Roku in the fourth quarter valued at $26,000. Westfuller Advisors LLC purchased a new position in Roku in the third quarter valued at $30,000. Root Financial Partners LLC acquired a new stake in Roku in the third quarter valued at $33,000. Finally, Rakuten Securities Inc. lifted its holdings in Roku by 55.6% during the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock worth $39,000 after buying an additional 158 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Company Profile

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.