Roku (NASDAQ:ROKU) Shares Up 3.1% - What's Next?

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price shot up 3.1% during mid-day trading on Tuesday . The stock traded as high as $62.50 and last traded at $58.92. 1,845,308 shares changed hands during trading, a decline of 51% from the average session volume of 3,740,003 shares. The stock had previously closed at $57.13.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on ROKU shares. Moffett Nathanson raised Roku from a "sell" rating to a "neutral" rating and set a $70.00 target price on the stock in a report on Tuesday, March 4th. JMP Securities raised their target price on Roku from $95.00 to $115.00 and gave the stock a "market outperform" rating in a research report on Friday, February 14th. Compass Point began coverage on Roku in a report on Sunday, March 23rd. They issued a "buy" rating for the company. Jefferies Financial Group raised shares of Roku from an "underperform" rating to a "hold" rating and raised their price objective for the stock from $55.00 to $100.00 in a report on Thursday, February 20th. Finally, Redburn Atlantic upgraded shares of Roku from a "neutral" rating to a "buy" rating and set a $100.00 price objective for the company in a research report on Monday, April 7th. One research analyst has rated the stock with a sell rating, five have given a hold rating, eighteen have assigned a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $96.70.

Roku Stock Performance

The company has a market capitalization of $8.79 billion, a price-to-earnings ratio of -67.66 and a beta of 2.17. The business has a 50-day simple moving average of $76.49 and a two-hundred day simple moving average of $76.57.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, beating analysts' consensus estimates of ($0.44) by $0.20. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. Research analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Monday, February 10th. The stock was sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares of the company's stock, valued at approximately $2,333,486.34. The trade was a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 5,000 shares of Roku stock in a transaction on Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the transaction, the chief financial officer now directly owns 58,555 shares of the company's stock, valued at $5,878,922. This trade represents a 7.87 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 72,905 shares of company stock worth $6,638,056. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC lifted its position in shares of Roku by 23.9% in the fourth quarter. Farther Finance Advisors LLC now owns 627 shares of the company's stock valued at $47,000 after acquiring an additional 121 shares in the last quarter. United Advisor Group LLC boosted its position in Roku by 0.9% during the fourth quarter. United Advisor Group LLC now owns 14,430 shares of the company's stock worth $1,073,000 after acquiring an additional 130 shares during the last quarter. Cerity Partners LLC grew its stake in Roku by 0.5% in the 4th quarter. Cerity Partners LLC now owns 26,679 shares of the company's stock worth $1,984,000 after acquiring an additional 145 shares during the period. Richard W. Paul & Associates LLC raised its holdings in Roku by 1.1% in the 4th quarter. Richard W. Paul & Associates LLC now owns 15,997 shares of the company's stock valued at $1,189,000 after acquiring an additional 177 shares during the last quarter. Finally, CIBC Asset Management Inc lifted its stake in shares of Roku by 5.2% during the 4th quarter. CIBC Asset Management Inc now owns 3,859 shares of the company's stock worth $287,000 after purchasing an additional 191 shares during the period. Institutional investors and hedge funds own 86.30% of the company's stock.

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.