Roku (NASDAQ:ROKU) Trading 5% Higher – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 5% during trading on Wednesday . The stock traded as high as $83.45 and last traded at $81.87. Approximately 1,767,172 shares traded hands during trading, a decline of 28% from the average daily volume of 2,440,119 shares. The stock had previously closed at $77.99.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. UBS Group assumed coverage on shares of Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective on the stock. Loop Capital increased their price target on shares of Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research report on Monday, December 9th. Benchmark restated a “buy” rating and set a $105.00 price objective on shares of Roku in a research report on Thursday, September 12th. Needham & Company LLC reiterated a “buy” rating and set a $100.00 target price on shares of Roku in a report on Tuesday. Finally, Morgan Stanley raised their price target on Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 29th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Roku has an average rating of “Hold” and a consensus price target of $82.62.

Roku Stock Performance

The company has a market cap of $11.50 billion, a P/E ratio of -65.99 and a beta of 2.05. The business’s 50-day moving average price is $75.99 and its 200 day moving average price is $69.89.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.29. The business had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company’s quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the firm posted ($2.33) EPS. Equities research analysts forecast that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Transactions at Roku

In related news, insider Charles Collier sold 10,771 shares of the business’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the transaction, the insider now owns 3,790 shares in the company, valued at $269,620.60. The trade was a 73.97 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 48,095 shares of company stock valued at $3,731,038. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Large investors have recently made changes to their positions in the company. Holocene Advisors LP purchased a new stake in shares of Roku in the third quarter worth approximately $129,015,000. Westfield Capital Management Co. LP lifted its stake in Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after acquiring an additional 856,401 shares in the last quarter. Point72 Asset Management L.P. boosted its holdings in Roku by 352.5% during the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after acquiring an additional 507,643 shares during the last quarter. JAT Capital Mgmt LP grew its stake in shares of Roku by 470.2% in the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after acquiring an additional 445,777 shares in the last quarter. Finally, FMR LLC raised its holdings in shares of Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after purchasing an additional 244,793 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Company Profile

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.