Roku (NASDAQ:ROKU) Shares Up 1.2% - Here's What Happened

Key Points

• Roku shares rose 1.2% in mid-day trading, reaching as high as $138.58 after closing at $136.53 the prior day. Trading volume came in slightly below average.
• Several analysts adjusted their views on the stock, with Piper Sandler and KeyCorp both downgrading Roku while Rosenblatt and Citigroup maintained or reiterated positive ratings. Overall, Wall Street’s consensus remains Hold with an average price target of $153.71.
• Roku’s most recent earnings beat expectations, reporting $0.57 EPS on $1.25 billion in revenue, both above estimates. Insider selling was also notable, with CFO Dan Jedda and other executives selling shares in recent weeks.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price rose 1.2% during mid-day trading on Tuesday . The stock traded as high as $138.58 and last traded at $138.14. 3,602,179 shares changed hands during trading, a decline of 7% from the average session volume of 3,871,384 shares. The stock had previously closed at $136.53.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Piper Sandler cut shares of Roku from an "overweight" rating to a "neutral" rating and increased their price objective for the company from $148.00 to $160.00 in a research note on Tuesday, June 16th. Rosenblatt Securities lifted their target price on shares of Roku from $150.00 to $160.00 and gave the stock a "buy" rating in a research report on Tuesday, June 16th. Citigroup reaffirmed an "outperform" rating on shares of Roku in a report on Monday, June 15th. Stifel Nicolaus set a $160.00 price objective on shares of Roku in a research note on Monday, March 2nd. Finally, KeyCorp cut shares of Roku from an "overweight" rating to a "sector weight" rating in a research note on Monday, June 15th. Eleven investment analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company. According to MarketBeat, Roku currently has an average rating of "Hold" and an average price target of $153.71.

Roku Stock Performance

The company has a market capitalization of $20.37 billion, a PE ratio of 103.87 and a beta of 2.06. The stock's fifty day simple moving average is $126.30 and its 200-day simple moving average is $109.37.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping analysts' consensus estimates of $0.34 by $0.23. The business had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company's quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.19) earnings per share. On average, equities analysts anticipate that Roku, Inc. will post 2.41 EPS for the current year.

Insider Activity

In other Roku news, CFO Dan Jedda sold 7,000 shares of Roku stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $143.87, for a total value of $1,007,090.00. Following the completion of the sale, the chief financial officer directly owned 79,963 shares of the company's stock, valued at approximately $11,504,276.81. The trade was a 8.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,537 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $124.94, for a total value of $2,565,892.78. Following the completion of the transaction, the insider owned 15,200 shares of the company's stock, valued at $1,899,088. This trade represents a 57.47% 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. Insiders have sold 713,194 shares of company stock valued at $81,763,589 in the last 90 days. Insiders own 13.45% of the company's stock.

Hedge Funds Weigh In On Roku

Large investors have recently added to or reduced their stakes in the business. Raleigh Capital Management Inc. grew its stake in Roku by 6.5% during the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company's stock valued at $144,000 after purchasing an additional 93 shares in the last quarter. Apollon Wealth Management LLC raised its position in shares of Roku by 1.5% in the 4th quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company's stock valued at $700,000 after purchasing an additional 96 shares in the last quarter. Quantum Portfolio Management LLC boosted its stake in shares of Roku by 2.6% during the 1st 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. HB Wealth Management LLC boosted its stake in shares of Roku by 3.7% during the 1st 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 last quarter. Finally, Quarry LP grew its position in shares of Roku by 21.7% during the fourth quarter. Quarry LP now owns 689 shares of the company's stock worth $75,000 after buying an additional 123 shares in the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

About Roku

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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