Roku (NASDAQ:ROKU) Trading 5.3% Higher – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 5.3% on Friday . The company traded as high as $98.46 and last traded at $98.41. Approximately 4,755,463 shares traded hands during mid-day trading, an increase of 24% from the average daily volume of 3,842,923 shares. The stock had previously closed at $93.47.

Analyst Ratings Changes

ROKU has been the subject of a number of recent analyst reports. Wall Street Zen upgraded shares of Roku from a “hold” rating to a “buy” rating in a report on Sunday, December 7th. Wedbush increased their price objective on Roku from $130.00 to $140.00 and gave the stock an “outperform” rating in a report on Friday, February 13th. KeyCorp lifted their price objective on Roku from $128.00 to $130.00 and gave the stock an “overweight” rating in a research report on Friday, February 13th. Pivotal Research upped their target price on Roku from $135.00 to $140.00 and gave the company a “buy” rating in a report on Monday, February 16th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $110.00 price target on shares of Roku in a report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $123.96.

Roku Stock Up 5.3%

The firm has a market cap of $14.51 billion, a P/E ratio of 172.65 and a beta of 1.99. The business has a fifty day simple moving average of $100.75 and a 200-day simple moving average of $99.05.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The business had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter last year, the firm earned ($0.24) earnings per share. The business’s revenue for the quarter was up 16.1% on a year-over-year basis. On average, sell-side analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $88.88, for a total value of $266,640.00. Following the completion of the sale, the chief financial officer directly owned 84,267 shares in the company, valued at $7,489,650.96. The trade was a 3.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction on Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the transaction, the insider directly owned 59,094 shares in the company, valued at $6,428,245.32. The trade was a 5.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 219,710 shares of company stock worth $22,761,608 in the last three months. 13.98% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kera Capital Partners Inc. raised its holdings in Roku by 40.5% in the 4th quarter. Kera Capital Partners Inc. now owns 5,563 shares of the company’s stock worth $604,000 after purchasing an additional 1,603 shares during the period. Virtu Financial LLC bought a new stake in Roku during the fourth quarter valued at about $1,112,000. Compound Planning Inc. increased its position in Roku by 32.4% in the fourth quarter. Compound Planning Inc. now owns 3,688 shares of the company’s stock worth $400,000 after buying an additional 902 shares in the last quarter. Invesco Ltd. raised its stake in shares of Roku by 6.8% in the fourth quarter. Invesco Ltd. now owns 205,115 shares of the company’s stock worth $22,253,000 after buying an additional 13,111 shares during the period. Finally, Corient Private Wealth LLC lifted its position in shares of Roku by 1,836.4% during the 4th quarter. Corient Private Wealth LLC now owns 296,903 shares of the company’s stock valued at $32,211,000 after buying an additional 281,570 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.