Roku (NASDAQ:ROKU) Shares Climb 1.4% - Here's What Happened

Key Points

• Roku shares rose 1.4% to $154.67 in midday trading, although volume was 46% below the average session level.
• Analysts remain cautious, with Roku holding an average “Hold” rating and a consensus price target of $156.17; recent target changes ranged from $157 to $172.
• Roku exceeded quarterly earnings and revenue expectations, reporting $1.08 EPS and $1.35 billion in revenue, with revenue up 21.9% year over year. Insiders have sold approximately $17.2 million in stock over the past 90 days, while institutional investors own 86.3% of shares.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price rose 1.4% during trading on Thursday. The company traded as high as $155.13 and last traded at $154.67. 1,783,918 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 3,280,018 shares. The stock had previously closed at $152.57.

Analyst Upgrades and Downgrades

Several research firms recently commented on ROKU. Fox Advisors set a $157.00 price target on Roku in a research report on Friday, July 17th. Citigroup upped their price objective on Roku from $120.00 to $157.00 and gave the company a "neutral" rating in a research report on Friday, July 17th. UBS Group upped their price objective on Roku from $126.00 to $172.00 and gave the company a "neutral" rating in a research report on Friday, August 7th. Guggenheim lowered Roku from a "buy" rating to a "neutral" rating and raised their price objective for the company from $145.00 to $160.00 in a research note on Friday, August 7th. Finally, JPMorgan Chase & Co. assumed coverage on Roku in a research note on Monday, August 24th. They issued a "neutral" rating and a $160.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Roku presently has an average rating of "Hold" and a consensus price target of $156.17.

Roku Stock Performance

The business's fifty day moving average is $154.66 and its two-hundred day moving average is $136.62. The company has a market cap of $22.96 billion, a P/E ratio of 66.10 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same period last year, the company posted $0.07 earnings per share. The company's quarterly revenue was up 21.9% compared to the same quarter last year. Analysts expect that Roku, Inc. will post 2.92 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In related news, insider Charles Collier sold 20,538 shares of the company's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $145.93, for a total value of $2,997,110.34. Following the completion of the sale, the insider directly owned 15,200 shares of the company's stock, valued at $2,218,136. This represents a 57.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher T. Handman sold 2,999 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $466,764.36. Following the transaction, the senior vice president owned 8,997 shares in the company, valued at approximately $1,400,293.08. The trade was a 25.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 112,285 shares of company stock worth $17,154,985. Insiders own 13.45% of the company's stock.

Hedge Funds Weigh In On Roku

Several institutional investors have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership raised its stake in shares of Roku by 229.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock worth $192,868,000 after acquiring an additional 1,419,772 shares in the last quarter. Renaissance Technologies LLC increased its position in shares of Roku by 22.8% during the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company's stock worth $148,090,000 after purchasing an additional 290,200 shares in the last quarter. Fred Alger Management LLC increased its position in shares of Roku by 7,087.7% during the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock worth $154,212,000 after purchasing an additional 1,401,664 shares in the last quarter. HBK Investments L P purchased a new stake in shares of Roku during the 2nd quarter valued at $163,604,000. Finally, Assenagon Asset Management S.A. lifted its holdings in shares of Roku by 24.7% during the 1st quarter. Assenagon Asset Management S.A. now owns 1,162,051 shares of the company's stock valued at $109,953,000 after purchasing an additional 230,398 shares during the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

Roku, Inc develops and operates a television streaming platform that connects consumers with digital entertainment. Its platform enables users to access streaming services, live television, movies, music and other content through Roku devices and Roku-powered televisions.

The company offers Roku streaming players, Roku-branded televisions and the Roku operating system, which it licenses to television manufacturers. Roku also operates The Roku Channel, an ad-supported streaming service offering movies, television programs, news, live channels and other content.

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