Roku (NASDAQ:ROKU) Trading Up 4.5% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) were up 4.5% on Monday . The company traded as high as $72.72 and last traded at $71.96. Approximately 1,204,554 shares traded hands during mid-day trading, a decline of 73% from the average daily volume of 4,405,465 shares. The stock had previously closed at $68.87.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on ROKU shares. Jefferies Financial Group cut their price target on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Benchmark reaffirmed a “buy” rating and set a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Citigroup raised their price objective on Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 25th. Wolfe Research raised Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective on the stock in a research note on Thursday, September 12th. Finally, Wells Fargo & Company raised their price objective on Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 31st. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and thirteen have issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $84.67.

Roku Stock Up 7.5 %

The firm has a market cap of $10.75 billion, a P/E ratio of -60.01 and a beta of 2.07. The business has a fifty day moving average of $74.36 and a 200 day moving average of $64.74.

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

Insiders Place Their Bets

In other news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $75.33, for a total value of $75,330.00. Following the completion of the sale, the chief financial officer now directly owns 54,267 shares in the company, valued at approximately $4,087,933.11. The trade was a 1.81 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total transaction of $109,012.27. Following the completion of the sale, the insider now owns 38,602 shares of the company’s stock, valued at approximately $2,485,582.78. The trade was a 4.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 69,776 shares of company stock worth $5,267,305 over the last three months. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Sender Co & Partners Inc. bought a new stake in shares of Roku during the third quarter worth $827,000. M&T Bank Corp grew its stake in shares of Roku by 19.1% during the third quarter. M&T Bank Corp now owns 7,024 shares of the company’s stock worth $525,000 after buying an additional 1,126 shares during the last quarter. Raelipskie Partnership bought a new stake in shares of Roku during the third quarter worth $32,000. Nomura Asset Management Co. Ltd. grew its stake in shares of Roku by 14.1% during the third quarter. Nomura Asset Management Co. Ltd. now owns 36,420 shares of the company’s stock worth $2,719,000 after buying an additional 4,500 shares during the last quarter. Finally, MML Investors Services LLC grew its stake in shares of Roku by 9.8% during the third quarter. MML Investors Services LLC now owns 10,592 shares of the company’s stock worth $791,000 after buying an additional 948 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.