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

Key Points

• Shares traded up about 2.2% to roughly $118.73 on Monday with midday volume (~2.25M) ~32% below the average session; Wall Street consensus is a “Moderate Buy” with an average price target of $128.21 (21 Buys, 5 Holds).
• Roku reported a quarterly earnings beat — EPS $0.53 vs. $0.28 expected and revenue $1.39B vs. $1.35B expected, with revenue up 16.1% year-over-year.
• Company insiders have been selling shares (including the CFO and CEO under pre-arranged Rule 10b5‑1 plans); insiders sold 426,375 shares (~$43.4M) in the last 90 days and still own about 13.98% of the stock.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares traded up 2.2% during trading on Monday . The stock traded as high as $118.84 and last traded at $118.73. 2,248,171 shares were traded during mid-day trading, a decline of 32% from the average session volume of 3,307,689 shares. The stock had previously closed at $116.19.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on ROKU shares. Evercore reiterated an "outperform" rating and set a $150.00 target price on shares of Roku in a report on Friday, February 13th. Piper Sandler restated an "overweight" rating and set a $140.00 price target (up from $135.00) on shares of Roku in a research report on Friday, February 13th. Needham & Company LLC reaffirmed a "buy" rating and issued a $110.00 price target on shares of Roku in a research note on Friday, February 13th. Wells Fargo & Company increased their price objective on Roku from $116.00 to $137.00 and gave the stock an "overweight" rating in a report on Friday, February 13th. Finally, Stifel Nicolaus set a $160.00 price objective on Roku in a report on Monday, March 2nd. Twenty-one analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $128.21.

Roku Stock Performance

The stock has a market capitalization of $17.50 billion, a P/E ratio of 208.30 and a beta of 2.00. The business has a 50-day moving average price of $95.64 and a 200 day moving average price of $99.85.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The business had revenue of $1.39 billion during the quarter, compared to analysts' expectations of $1.35 billion. During the same quarter in the previous year, the business earned ($0.24) earnings per share. The firm's quarterly revenue was up 16.1% compared to the same quarter last year. As a group, research analysts forecast that Roku, Inc. will post 2.1 earnings per share for the current fiscal year.

Insider Activity at Roku

In other news, CFO Dan Jedda sold 7,000 shares of the company's stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $107.00, for a total value of $749,000.00. Following the transaction, the chief financial officer owned 78,115 shares in the company, valued at approximately $8,358,305. This represents a 8.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $110.19, for a total transaction of $2,754,750.00. 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. Insiders sold a total of 426,375 shares of company stock worth $43,390,928 in the last ninety days. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Blue Trust Inc. increased its holdings in shares of Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company's stock worth $25,000 after purchasing an additional 204 shares in the last quarter. Aventura Private Wealth LLC bought a new position in shares of Roku during the fourth quarter valued at $26,000. WPG Advisers LLC purchased a new stake in shares of Roku during the fourth quarter valued at $31,000. Safe Harbor Fiduciary LLC purchased a new stake in shares of Roku during the fourth quarter valued at $31,000. Finally, Westfuller Advisors LLC bought a new stake in Roku in the 3rd quarter worth about $30,000. 86.30% of the stock is 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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