Roku (NASDAQ:ROKU) Trading Up 4.5% - Here's Why

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) 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 changed hands during trading, a decline of 73% from the average daily volume of 4,405,465 shares. The stock had previously closed at $68.87.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of recent analyst reports. Citigroup boosted their target price on shares of Roku from $60.00 to $77.00 and gave the company a "neutral" rating in a research note on Wednesday, September 25th. Bank of America upped their price objective on shares of Roku from $75.00 to $90.00 and gave the company a "buy" rating in a report on Monday, September 30th. Wells Fargo & Company upped their price objective on shares of Roku from $72.00 to $74.00 and gave the company an "equal weight" rating in a report on Thursday, October 31st. Moffett Nathanson upgraded shares of Roku from a "sell" rating to a "neutral" rating and set a $80.00 price target on the stock in a report on Tuesday, October 1st. Finally, Wolfe Research upgraded Roku from a "peer perform" rating to an "outperform" rating and set a $93.00 price objective on the stock in a research report on Thursday, September 12th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $84.67.

Roku Price Performance

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

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.35) by $0.29. The business had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business's revenue for the quarter was up 16.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($2.33) EPS. On average, equities research analysts expect that Roku, Inc. will post -1.1 EPS for the current year.

Insider Transactions at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the business's stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the transaction, the chief financial officer now owns 53,267 shares in the company, valued at $4,061,608.75. The trade was a 1.84 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the completion of the transaction, the chief executive officer now owns 5,020 shares in the company, valued at $376,500. This trade represents a 83.28 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 69,776 shares of company stock valued at $5,267,305. Corporate insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Several large investors have recently made changes to their positions in the business. FMR LLC raised its holdings in Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company's stock valued at $1,087,824,000 after acquiring an additional 244,793 shares in the last quarter. ARK Investment Management LLC grew its stake in shares of Roku by 1.3% in the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company's stock valued at $762,096,000 after purchasing an additional 159,785 shares during the period. Vanguard Group Inc. grew its stake in shares of Roku by 0.8% in the 1st quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company's stock valued at $778,560,000 after purchasing an additional 92,658 shares during the period. Holocene Advisors LP bought a new stake in Roku during the 3rd quarter worth approximately $129,015,000. Finally, Westfield Capital Management Co. LP grew its position 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 worth $114,646,000 after acquiring an additional 856,401 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.

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.

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