Roku (NASDAQ:ROKU) Trading Up 2.7% on Earnings Beat

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares were up 2.7% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $71.25 and last traded at $70.01. Approximately 2,204,640 shares traded hands during trading, a decline of 40% from the average daily volume of 3,681,103 shares. The stock had previously closed at $68.18.

The company reported ($0.19) earnings per share for the quarter, beating analysts' consensus estimates of ($0.27) by $0.08. The company had revenue of $1.02 billion for the quarter, compared to analysts' expectations of $1.01 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. Roku's revenue for the quarter was up 15.8% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.35) EPS.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. FBN Securities initiated coverage on Roku in a report on Friday, March 28th. They set an "outperform" rating and a $93.00 price objective on the stock. Benchmark reissued a "buy" rating and issued a $130.00 price target on shares of Roku in a report on Friday. Bank of America started coverage on Roku in a research report on Thursday, March 27th. They set a "buy" rating and a $100.00 price target for the company. Citigroup reaffirmed an "outperform" rating on shares of Roku in a report on Thursday, April 24th. Finally, JPMorgan Chase & Co. lowered their price objective on Roku from $115.00 to $75.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 22nd. One research analyst has rated the stock with a sell rating, seven have given a hold rating, sixteen have given a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $89.46.

Insider Activity

In related news, CFO Dan Jedda sold 5,000 shares of the company'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 $502,000.00. Following the sale, the chief financial officer now owns 58,555 shares of the company's stock, valued at $5,878,922. The trade was a 7.87 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 4,600 shares of the business's stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $345,000.00. Following the completion of the sale, the chief executive officer now owns 6,243 shares in the company, valued at $468,225. This represents a 42.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 71,905 shares of company stock worth $6,560,876 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 made changes to their positions in the company. Farther Finance Advisors LLC increased its stake in Roku by 23.9% in the fourth quarter. Farther Finance Advisors LLC now owns 627 shares of the company's stock valued at $47,000 after purchasing an additional 121 shares in the last quarter. United Advisor Group LLC grew its stake in Roku by 0.9% in the fourth quarter. United Advisor Group LLC now owns 14,430 shares of the company's stock valued at $1,073,000 after purchasing an additional 130 shares in the last quarter. Cerity Partners LLC increased its holdings in Roku by 0.5% during the fourth quarter. Cerity Partners LLC now owns 26,679 shares of the company's stock worth $1,984,000 after buying an additional 145 shares during the last quarter. Richard W. Paul & Associates LLC raised its holdings in shares of Roku by 1.1% in the 4th quarter. Richard W. Paul & Associates LLC now owns 15,997 shares of the company's stock valued at $1,189,000 after purchasing an additional 177 shares during the period. Finally, CIBC Asset Management Inc lifted its position in shares of Roku by 5.2% in the fourth quarter. CIBC Asset Management Inc now owns 3,859 shares of the company's stock valued at $287,000 after buying an additional 191 shares during the last quarter. Institutional investors own 86.30% of the company's stock.

Roku Price Performance

The company has a market capitalization of $8.98 billion, a P/E ratio of -69.16 and a beta of 2.17. The company's 50-day moving average price is $69.14 and its two-hundred day moving average price is $75.29.

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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