Roku (NASDAQ:ROKU) Trading Up 1.2% - Here's Why

Key Points

• Roku shares rose 1.2% on Monday, trading as high as $142.87 after closing at $140.69, though volume came in below average. The stock remains well above its 50-day and 200-day moving averages.
• Wall Street sentiment is mixed: Wells Fargo raised its target to $167 and kept an overweight rating, while other firms such as KeyCorp and Susquehanna turned more cautious. Overall, analysts currently rate Roku a Hold on average with a $153.71 target price.
• Roku’s latest earnings beat expectations, with EPS of $0.57 versus $0.34 expected and revenue of $1.25 billion versus $1.20 billion expected, up 22.4% year over year. Insider selling has also been notable, with directors and officers selling shares in recent months.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares rose 1.2% during trading on Monday . The stock traded as high as $142.87 and last traded at $142.34. 2,888,253 shares traded hands during mid-day trading, a decline of 25% from the average daily volume of 3,845,385 shares. The stock had previously closed at $140.69.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company upped their price target on shares of Roku from $137.00 to $167.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Weiss Ratings reissued a "hold (c-)" rating on shares of Roku in a research report on Friday, May 15th. KeyCorp downgraded Roku from an "overweight" rating to a "sector weight" rating in a research note on Monday, June 15th. Susquehanna lowered Roku from a "positive" rating to a "neutral" rating and set a $160.00 target price on the stock. in a report on Tuesday, June 16th. Finally, Rosenblatt Securities lifted their price target on Roku from $150.00 to $160.00 and gave the stock a "buy" rating in a research report on Tuesday, June 16th. Eleven analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $153.71.

Roku Price Performance

The stock's 50 day moving average is $130.91 and its two-hundred day moving average is $111.42. The firm has a market capitalization of $20.99 billion, a P/E ratio of 107.02 and a beta of 2.01.

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

Insider Activity

In related news, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $140.65, for a total value of $281,300.00. Following the sale, the director owned 9,629 shares of the company's stock, valued at approximately $1,354,318.85. The trade was a 17.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 554 shares of the company's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $138.88, for a total value of $76,939.52. Following the sale, the chief accounting officer owned 7,171 shares in the company, valued at $995,908.48. The trade was a 7.17% decrease in their position. 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. Over the last ninety days, insiders sold 477,737 shares of company stock worth $58,132,511. 13.45% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC boosted its holdings in shares of Roku by 275.5% in the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company's stock valued at $258,897,000 after buying an additional 1,897,407 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Roku by 229.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock valued at $192,868,000 after buying an additional 1,419,772 shares in the last quarter. Fred Alger Management LLC increased its holdings in Roku by 7,087.7% during the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock worth $154,212,000 after buying an additional 1,401,664 shares during the last quarter. Holocene Advisors LP raised its position in Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock worth $165,259,000 after acquiring an additional 1,285,585 shares in the last quarter. Finally, Norges Bank bought a new stake in Roku during the fourth quarter worth $92,808,000. 86.30% of the stock is currently owned by 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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