Roku (NASDAQ:ROKU) Stock Price Up 3.1% - Here's Why

Key Points

• Roku's stock price increased by 3.1% during mid-day trading, reaching a last trade of $86.92, although trading volume was down by 71% from the average.
• Several analysts have upgraded Roku’s stock ratings and target prices, with Pivotal Research raising their target from $100.00 to $120.00 and giving it a "buy" rating.
• Roku reported earnings of $0.07 per share for the last quarter, significantly above expectations, and its quarterly revenue grew by 14.7% year-over-year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shot up 3.1% during mid-day trading on Wednesday . The company traded as high as $88.47 and last traded at $86.92. 1,159,496 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 4,005,738 shares. The stock had previously closed at $84.32.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Needham & Company LLC raised their target price on shares of Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Pivotal Research increased their price target on Roku from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. KeyCorp increased their price target on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, Evercore ISI decreased their price target on Roku from $105.00 to $80.00 and set an "in-line" rating for the company in a report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, nineteen have assigned a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, Roku has an average rating of "Moderate Buy" and a consensus target price of $98.96.

Roku Trading Up 4.5%

The company has a 50 day moving average price of $85.41 and a 200 day moving average price of $77.22. The company has a market capitalization of $12.98 billion, a P/E ratio of -209.74, a P/E/G ratio of 11.48 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%. The firm's quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter last year, the company earned ($0.18) earnings per share. As a group, sell-side analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity

In related news, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction that occurred on Tuesday, July 15th. The shares were sold at an average price of $90.20, for a total value of $270,600.00. Following the transaction, the chief financial officer directly owned 76,132 shares of the company's stock, valued at $6,867,106.40. This trade represents a 3.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Matthew C. Banks sold 3,360 shares of the stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $85.05, for a total transaction of $285,768.00. Following the completion of the transaction, the chief accounting officer directly owned 5,195 shares of the company's stock, valued at approximately $441,834.75. The trade was a 39.28% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 337,233 shares of company stock valued at $30,423,181. 13.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently modified their holdings of the company. Cerity Partners LLC grew its holdings in shares of Roku by 0.5% in the fourth quarter. Cerity Partners LLC now owns 26,679 shares of the company's stock valued at $1,984,000 after acquiring an additional 145 shares in the last quarter. Raymond James Financial Inc. bought a new stake in shares of Roku in the 4th quarter worth approximately $2,950,000. Treasurer of the State of North Carolina raised its holdings in shares of Roku by 0.6% in the 4th quarter. Treasurer of the State of North Carolina now owns 55,563 shares of the company's stock worth $4,131,000 after purchasing an additional 350 shares during the period. Sterling Capital Management LLC raised its holdings in shares of Roku by 50.3% in the 4th quarter. Sterling Capital Management LLC now owns 6,672 shares of the company's stock worth $496,000 after purchasing an additional 2,232 shares during the period. Finally, Guggenheim Capital LLC raised its holdings in shares of Roku by 108.1% in the 4th quarter. Guggenheim Capital LLC now owns 14,475 shares of the company's stock worth $1,076,000 after purchasing an additional 7,518 shares during the period. Institutional investors own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

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