Roku (NASDAQ:ROKU) Hits New 12-Month High - Here's Why

Key Points

• Roku shares reached a new 52-week high of $159.85, trading above their 50-day and 200-day moving averages. Despite the rally, analysts’ average rating remains “Hold,” with an average price target of $156.17.
• Roku reported stronger-than-expected quarterly results, posting $1.08 in EPS versus $0.61 expected and $1.35 billion in revenue, up 21.9% year over year.
• Insiders sold 162,452 shares worth approximately $22.1 million during the latest quarter, while institutional investors continued to hold a significant 86.3% of the company’s outstanding stock.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $159.85 and last traded at $159.7520, with a volume of 570882 shares traded. The stock had previously closed at $158.18.

Analyst Ratings Changes

Several research firms have commented on ROKU. Susquehanna downgraded shares of Roku from a "positive" rating to a "neutral" rating and set a $160.00 price target on the stock. in a research note on Tuesday, June 16th. Weiss Ratings raised shares of Roku from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Fox Advisors set a $157.00 target price on shares of Roku in a research report on Friday, July 17th. Seaport Research Partners downgraded shares of Roku from a "buy" rating to a "neutral" rating in a research note on Friday, August 7th. Finally, Wells Fargo & Company restated an "equal weight" rating and set a $165.00 price target (down from $167.00) on shares of Roku in a research report on Friday, August 14th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $156.17.

Roku Stock Up 0.1%

The firm's fifty day moving average price is $144.80 and its 200-day moving average price is $120.57. The stock has a market cap of $23.51 billion, a P/E ratio of 67.69 and a beta of 2.01.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. The firm's revenue was up 21.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.07 EPS. Sell-side analysts predict that Roku, Inc. will post 2.82 earnings per share for the current year.

Insider Activity at Roku

In related news, Director Neil D. Hunt sold 2,000 shares of the firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $146.25, for a total value of $292,500.00. Following the sale, the director directly owned 9,629 shares of the company's stock, valued at $1,408,241.25. This trade represents a 17.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 10,719 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $150.00, for a total value of $1,607,850.00. Following the transaction, the insider directly owned 40,380 shares of the company's stock, valued at $6,057,000. The trade was a 20.98% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 162,452 shares of company stock valued at $22,052,982 in the last quarter. 13.45% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently made changes to their positions in ROKU. Jefferies Financial Group Inc. acquired a new position in shares of Roku in the 4th quarter valued at $1,345,000. Moran Wealth Management LLC acquired a new stake in shares of Roku during the 1st quarter worth approximately $2,990,000. Contravisory Investment Management Inc. purchased a new position in Roku during the second quarter worth approximately $1,184,000. California Public Employees Retirement System increased its position in shares of Roku by 14.8% in the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company's stock valued at $24,674,000 after buying an additional 33,593 shares in the last quarter. Finally, Lazard Asset Management LLC raised its position in Roku by 31.6% during the first quarter. Lazard Asset Management LLC now owns 96,204 shares of the company's stock worth $9,103,000 after acquiring an additional 23,092 shares during the period. Institutional investors own 86.30% of the company's stock.

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.

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