Roku (NASDAQ:ROKU) Trading Up 2.2% - Here's Why

Key Points

• The shares of Roku, Inc. rose by 2.2% during mid-day trading, reaching a last trade price of $96.28, despite a decline in trading volume compared to its average.
• Several brokerages have raised their target price for Roku, with Pivotal Research setting a target at $120.00 and the average consensus target price now at $101.33, indicating a generally positive outlook.
• Roku reported a quarterly earnings per share of $0.07, beating estimates significantly and marking a year-over-year revenue increase of 14.7% to $1.11 billion.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) were up 2.2% during mid-day trading on Monday . The company traded as high as $96.93 and last traded at $96.28. Approximately 1,785,359 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 3,810,756 shares. The stock had previously closed at $94.21.

Analyst Ratings Changes

A number of brokerages have weighed in on ROKU. JPMorgan Chase & Co. raised their target price on shares of Roku from $100.00 to $105.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Piper Sandler raised their target price on shares of Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a research note on Thursday, July 10th. Citigroup raised their target price on shares of Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a research note on Thursday, September 18th. Pivotal Research raised their target price on shares of Roku from $100.00 to $120.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Wedbush reaffirmed an "outperform" rating and set a $100.00 target price on shares of Roku in a research note on Monday, July 28th. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Trading Up 2.2%

The stock's fifty day moving average price is $96.30 and its 200 day moving average price is $82.99.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The firm had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the prior year, the company posted ($0.18) earnings per share. The business's revenue for the quarter was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling

In related news, CAO Matthew C. Banks sold 2,180 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $97.85, for a total value of $213,313.00. Following the sale, the chief accounting officer owned 5,355 shares in the company, valued at approximately $523,986.75. This trade represents a 28.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Dan Jedda sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, October 15th. The stock was sold at an average price of $95.82, for a total transaction of $287,460.00. Following the completion of the sale, the chief financial officer owned 80,420 shares in the company, valued at $7,705,844.40. This represents a 3.60% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 328,331 shares of company stock valued at $32,640,556 in the last ninety days. Corporate insiders own 13.98% of the company's stock.

Institutional Investors Weigh In On Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Tableaux LLC purchased a new position in shares of Roku during the 2nd quarter worth $1,746,000. Acadian Asset Management LLC boosted its stake in shares of Roku by 456.7% during the 1st quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock worth $134,222,000 after acquiring an additional 1,563,449 shares during the last quarter. Duquesne Family Office LLC boosted its stake in shares of Roku by 123.0% during the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock worth $96,723,000 after acquiring an additional 606,900 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Roku by 38,431.7% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company's stock worth $34,470,000 after acquiring an additional 488,083 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of Roku by 491.5% during the 1st quarter. AQR Capital Management LLC now owns 562,027 shares of the company's stock worth $38,943,000 after acquiring an additional 467,005 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

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.

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