Roku (NASDAQ:ROKU) Trading Up 12.1% - Here's Why

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price traded up 12.1% during trading on Monday . The company traded as high as $67.60 and last traded at $68.33. 2,568,719 shares were traded during trading, a decline of 32% from the average session volume of 3,776,377 shares. The stock had previously closed at $60.93.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on ROKU shares. Citigroup dropped their target price on shares of Roku from $81.00 to $68.00 and set a "neutral" rating on the stock in a report on Tuesday, May 6th. Evercore ISI lowered their target price on shares of Roku from $105.00 to $80.00 and set an "in-line" rating on the stock in a report on Friday, May 2nd. Bank of America assumed coverage on shares of Roku in a research report on Thursday, March 27th. They set a "buy" rating and a $100.00 price target on the stock. Wedbush cut their target price on shares of Roku from $125.00 to $100.00 and set an "outperform" rating on the stock in a research report on Monday, April 28th. Finally, Compass Point assumed coverage on shares of Roku in a research note on Sunday, March 23rd. They set a "buy" rating for the company. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have assigned a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $87.93.

Roku Trading Up 12.9%

The stock has a market capitalization of $10.04 billion, a price-to-earnings ratio of -77.28 and a beta of 2.06. The stock has a 50-day moving average price of $66.49 and a 200 day moving average price of $74.60.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.08. The business had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business's revenue was up 15.8% on a year-over-year basis. During the same period last year, the company posted ($0.35) EPS. Equities research analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $2,510,000.00. Following the completion of the sale, the chief executive officer now owns 26,538 shares in the company, valued at $2,664,415.20. This trade represents a 48.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Charles Collier sold 7,181 shares of the firm's stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total transaction of $561,913.25. Following the completion of the sale, the insider now owns 7,380 shares of the company's stock, valued at approximately $577,485. The trade was a 49.32% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 47,111 shares of company stock valued at $4,377,112. 13.98% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Entropy Technologies LP lifted its holdings in shares of Roku by 264.4% during the 4th quarter. Entropy Technologies LP now owns 25,525 shares of the company's stock valued at $1,898,000 after acquiring an additional 18,520 shares in the last quarter. Geode Capital Management LLC raised its stake in Roku by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock worth $159,353,000 after acquiring an additional 56,820 shares during the period. Charles Schwab Investment Management Inc. grew its position in Roku by 3.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 990,867 shares of the company's stock worth $73,661,000 after purchasing an additional 34,898 shares during the last quarter. Achmea Investment Management B.V. grew its position in Roku by 146.4% in the 4th quarter. Achmea Investment Management B.V. now owns 10,168 shares of the company's stock worth $756,000 after purchasing an additional 6,042 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. grew its position in Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock worth $96,402,000 after purchasing an additional 1,082,548 shares during the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

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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