Roku (NASDAQ:ROKU) Trading Up 2.1% - What's Next?

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) traded up 2.1% on Tuesday . The company traded as high as $70.60 and last traded at $70.46. 577,156 shares were traded during trading, a decline of 85% from the average session volume of 3,763,352 shares. The stock had previously closed at $69.01.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Compass Point assumed coverage on shares of Roku in a research report on Sunday, March 23rd. They set a "buy" rating on the stock. Citigroup cut their price objective on shares of Roku from $81.00 to $68.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 6th. Guggenheim reaffirmed a "buy" rating and issued a $100.00 price target on shares of Roku in a research note on Friday, May 2nd. Moffett Nathanson raised shares of Roku from a "sell" rating to a "neutral" rating and set a $70.00 price target on the stock in a research note on Tuesday, March 4th. Finally, Rosenblatt Securities reduced their price target on shares of Roku from $100.00 to $75.00 and set a "neutral" rating on the stock in a research note on Friday, May 2nd. One equities 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 assigned a strong buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $87.93.

Roku Stock Performance

The firm has a market capitalization of $10.45 billion, a P/E ratio of -80.42 and a beta of 2.06. The business's fifty day moving average price is $65.51 and its two-hundred day moving average price is $74.39.

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

Insider Activity

In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the completion of the transaction, the chief executive officer now directly owns 6,243 shares of the company's stock, valued at $468,225. This trade represents a 80.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Matthew C. Banks sold 1,906 shares of the stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total transaction of $153,166.16. Following the completion of the transaction, the chief accounting officer now directly owns 7,256 shares of the company's stock, valued at $583,092.16. The trade was a 20.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 40,100 shares of company stock worth $3,039,215. Corporate insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

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

About Roku

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.