Roku (NASDAQ:ROKU) Stock Price Up 1.6% - Here's What Happened

Key Points

• Roku shares rose 1.6% to $157.45, with trading volume 55% below the average daily volume. The company has a $23.37 billion market capitalization and a beta of 2.05.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $156.17. Recent firms have downgraded Roku or lowered their ratings, although Needham maintained a “Buy” rating.
• Roku exceeded quarterly expectations, reporting $1.08 in earnings per share versus a $0.61 estimate and $1.35 billion in revenue, up 21.9% year over year. Insiders sold $15.8 million of stock in the last quarter, while institutional investors own 86.3% of the company.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares traded up 1.6% on Monday . The stock traded as high as $157.83 and last traded at $157.45. 1,579,584 shares traded hands during trading, a decline of 55% from the average daily volume of 3,500,231 shares. The stock had previously closed at $154.93.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on ROKU shares. Wells Fargo & Company reiterated an "equal weight" rating and issued a $165.00 price target (down from $167.00) on shares of Roku in a research report on Friday, August 14th. Oppenheimer cut shares of Roku from an "outperform" rating to a "market perform" rating in a report on Monday, June 15th. Needham & Company LLC reaffirmed a "buy" rating on shares of Roku in a research note on Friday, August 7th. Piper Sandler downgraded Roku from an "overweight" rating to a "neutral" rating and upped their target price for the company from $148.00 to $160.00 in a report on Tuesday, June 16th. Finally, KeyCorp lowered Roku from an "overweight" rating to a "sector weight" rating in a report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have issued a Hold rating to the company. According to data from MarketBeat.com, Roku presently has a consensus rating of "Hold" and an average target price of $156.17.

Roku Stock Up 1.6%

The company has a 50-day moving average price of $150.02 and a 200-day moving average price of $127.28. The company has a market capitalization of $23.37 billion, a price-to-earnings ratio of 67.29 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.08 earnings per share for the quarter, beating 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 firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the prior year, the firm earned $0.07 EPS. The business's revenue was up 21.9% on a year-over-year basis. Equities analysts expect that Roku, Inc. will post 2.85 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, CAO Matthew Banks sold 546 shares of Roku stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $84,979.44. Following the sale, the chief accounting officer owned 8,122 shares in the company, valued at $1,264,108.08. The trade was a 6.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 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. Also, insider Gilbert Fuchsberg sold 4,824 shares of the firm's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $750,807.36. Following the transaction, the insider directly owned 40,168 shares of the company's stock, valued at $6,251,747.52. The trade was a 10.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold a total of 105,285 shares of company stock valued at $15,841,744 in the last quarter. 13.45% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System boosted its stake in shares of Roku by 13,741.7% in the 2nd quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company's stock valued at $2,888,886,000 after purchasing an additional 20,761,653 shares in the last quarter. Geode Capital Management LLC boosted its position in Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock valued at $267,389,000 after buying an additional 168,214 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Roku by 229.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock worth $192,868,000 after buying an additional 1,419,772 shares during the last quarter. Renaissance Technologies LLC increased its holdings 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 buying an additional 290,200 shares in the last quarter. Finally, Fred Alger Management LLC raised its stake in shares of Roku by 7,087.7% in the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock valued at $154,212,000 after acquiring an additional 1,401,664 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Company Profile

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. Its Roku operating system powers streaming players, Roku-branded televisions and smart-TV products made by licensing partners. The platform provides access to streaming services, live television, movies, music and other applications.

The company also operates The Roku Channel, its own ad-supported streaming service offering licensed and original content, including movies, television programs, live channels and premium subscription options.

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