Roku (NASDAQ:ROKU) Shares Up 3.9% - Here's What Happened

Key Points

• Roku reported a quarterly EPS of $0.53 vs. $0.28 expected and revenue of $1.39B vs. $1.35B, with revenue up 16.1% year‑over‑year.
• Analysts have been raising targets and ratings — the stock carries a consensus "Moderate Buy" with an average price target of $123.96 (multiple firms lifted targets into the $115–$145 range).
• Insiders have been net sellers recently: CEO Anthony Wood sold 50,000 shares and insiders disposed of 219,710 shares (~$22.8M) over the last three months, while insiders still own about 14% of the stock.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price was up 3.9% during trading on Tuesday . The company traded as high as $87.77 and last traded at $87.68. Approximately 3,242,879 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 3,818,756 shares. The stock had previously closed at $84.42.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Citizens Jmp restated a "market outperform" rating and issued a $145.00 price target on shares of Roku in a research report on Tuesday, December 2nd. Jefferies Financial Group upgraded shares of Roku from a "hold" rating to a "buy" rating and raised their target price for the stock from $100.00 to $135.00 in a report on Thursday, December 11th. Guggenheim lifted their price target on shares of Roku from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Thursday, December 4th. KeyCorp upped their price target on shares of Roku from $128.00 to $130.00 and gave the company an "overweight" rating in a report on Friday, February 13th. Finally, Arete Research set a $132.00 price objective on shares of Roku and gave the stock a "buy" rating in a research note on Monday, January 5th. One analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $123.96.

Roku Price Performance

The stock's 50-day moving average price is $101.88 and its 200 day moving average price is $99.11. The firm has a market capitalization of $12.93 billion, a PE ratio of 153.83 and a beta of 1.99.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.25. The company had revenue of $1.39 billion for the quarter, compared to analysts' expectations of $1.35 billion. Roku had a return on equity of 3.40% and a net margin of 1.87%.Roku's revenue was up 16.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.24) earnings per share. Equities research analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In related news, insider Gilbert Fuchsberg sold 3,250 shares of the company's stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the completion of the sale, the insider directly owned 59,094 shares of the company's stock, valued at $6,428,245.32. This represents a 5.21% 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. Also, CEO Anthony J. Wood sold 50,000 shares of the stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $90.79, for a total transaction of $4,539,500.00. The SEC filing for this sale provides additional information. Insiders sold a total of 219,710 shares of company stock valued at $22,761,608 over the last three months. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Institutional investors have recently bought and sold shares of the business. Blue Trust Inc. boosted its position in Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company's stock valued at $25,000 after acquiring an additional 204 shares in the last quarter. Aventura Private Wealth LLC purchased a new stake in shares of Roku during the 4th quarter worth $26,000. Westfuller Advisors LLC bought a new stake in Roku during the third quarter valued at about $30,000. WPG Advisers LLC purchased a new position in Roku in the fourth quarter valued at about $31,000. Finally, Safe Harbor Fiduciary LLC bought a new position in Roku in the fourth quarter worth about $31,000. 86.30% of the stock is 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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