Roku (NASDAQ:ROKU) Sees Strong Trading Volume on Analyst Upgrade

Key Points

• Roku shares traded heavily after Citizens JMP lifted its price target from $170 to $175 and kept an outperform rating. The stock saw about 5.23 million shares change hands, well above the prior session’s volume.
• Other analysts remain bullish, with several firms recently raising targets and the broader consensus sitting at a Moderate Buy with a $148.42 average price target. The article notes 20 analysts rate Roku a Buy versus seven Holds.
• Insider selling continued, including sales by Mustafa Ozgen and CEO Anthony J. Wood, while insiders have sold more than 706,000 shares over the past 90 days. Separately, the article highlights strong institutional ownership at 86.30%.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) saw unusually-strong trading volume on Monday after Citizens Jmp raised their price target on the stock from $170.00 to $175.00. Citizens Jmp currently has a market outperform rating on the stock. Approximately 5,231,883 shares changed hands during trading, an increase of 66% from the previous session's volume of 3,154,038 shares.The stock last traded at $140.4840 and had previously closed at $143.66.

A number of other equities analysts have also commented on ROKU. Rosenblatt Securities raised their price objective on shares of Roku from $118.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. UBS Group set a $170.00 price objective on shares of Roku in a research note on Thursday, May 28th. KeyCorp raised their price objective on shares of Roku from $140.00 to $150.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Guggenheim raised their price objective on shares of Roku from $140.00 to $145.00 and gave the stock a "buy" rating in a research note on Tuesday, June 9th. Finally, Susquehanna lifted their target price on shares of Roku from $130.00 to $160.00 and gave the company a "positive" rating in a research note on Friday, May 1st. Twenty investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Roku has a consensus rating of "Moderate Buy" and a consensus price target of $148.42.

Insiders Place Their Bets

In related news, insider Mustafa Ozgen sold 10,194 shares of Roku stock in a transaction on Friday, June 12th. The shares were sold at an average price of $144.00, for a total value of $1,467,936.00. Following the transaction, the insider owned 19,185 shares in the company, valued at $2,762,640. This trade represents a 34.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Friday, June 12th. The stock was sold at an average price of $130.00, for a total transaction of $3,250,000.00. 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. Insiders have sold 706,194 shares of company stock worth $80,756,499 in the last 90 days. 13.45% of the stock is owned by corporate insiders.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox Corp. agreed to acquire Roku in a $22 billion deal, offering $96 in cash and Fox stock for each Roku share and signaling a major strategic premium for shareholders. Reuters: Fox to buy Roku in $22 billion deal
• Positive Sentiment: Roku saw unusually heavy call-option buying, suggesting traders are positioning for continued upside or further deal-related volatility. Seeking Alpha: Roku, Inc. (ROKU) M&A Call Transcript
• Positive Sentiment: Citizens JMP raised its price target on Roku to $175 and kept an “outperform” rating, reinforcing bullish sentiment around the stock after the deal announcement. Benzinga report on Citizens JMP price target increase
• Neutral Sentiment: Technical indicators also turned supportive, with reports that Roku recently moved above its 20-day and 50-day moving averages, which may have added momentum before the acquisition news.
• Negative Sentiment: Some coverage noted the offer’s premium may be modest relative to recent trading, and a shareholder law firm launched an investigation into whether Roku investors are getting a fair price, which could create deal uncertainty. PR Newswire: Shareholder Alert

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Raleigh Capital Management Inc. raised its holdings in Roku by 6.5% in the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company's stock worth $144,000 after acquiring an additional 93 shares during the period. Apollon Wealth Management LLC raised its holdings in Roku by 1.5% in the 4th quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company's stock worth $700,000 after acquiring an additional 96 shares during the period. Thoroughbred Financial Services LLC increased its holdings in shares of Roku by 1.0% during the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company's stock worth $995,000 after purchasing an additional 100 shares during the period. Quantum Portfolio Management LLC raised its position in shares of Roku by 2.6% during the first quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company's stock valued at $391,000 after buying an additional 105 shares during the last quarter. Finally, HB Wealth Management LLC lifted its stake in shares of Roku by 3.7% in the first quarter. HB Wealth Management LLC now owns 3,447 shares of the company's stock valued at $326,000 after buying an additional 122 shares during the period. Institutional investors own 86.30% of the company's stock.

Roku Price Performance

The company's 50 day moving average is $118.73 and its two-hundred day moving average is $106.32. The firm has a market cap of $20.94 billion, a P/E ratio of 107.11 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The business had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter last year, the company earned ($0.19) earnings per share. The firm's revenue was up 22.4% on a year-over-year basis. Research analysts predict that Roku, Inc. will post 2.41 EPS for the current year.

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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