Traders Buy High Volume of Roku Call Options (NASDAQ:ROKU)

Roku, Inc. (NASDAQ:ROKU - Get Free Report) was the target of some unusual options trading activity on Monday. Traders bought 42,179 call options on the company. This is an increase of approximately 69% compared to the average volume of 24,933 call options.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on ROKU shares. JPMorgan Chase & Co. upped their target price on Roku from $75.00 to $85.00 and gave the company an "overweight" rating in a research report on Tuesday, June 3rd. Guggenheim restated a "buy" rating and issued a $100.00 price target on shares of Roku in a research note on Friday, May 2nd. Jefferies Financial Group upgraded shares of Roku from an "underperform" rating to a "hold" rating and upped their price objective for the stock from $55.00 to $100.00 in a research report on Thursday, February 20th. Loop Capital decreased their target price on Roku from $90.00 to $80.00 and set a "hold" rating on the stock in a research report on Friday, May 2nd. Finally, 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. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $88.37.

Roku Stock Performance

Shares of NASDAQ:ROKU traded up $5.73 during trading on Monday, hitting $80.14. The company's stock had a trading volume of 6,451,710 shares, compared to its average volume of 3,837,544. The company has a market capitalization of $11.70 billion, a PE ratio of -90.12 and a beta of 2.09. Roku has a fifty-two week low of $48.33 and a fifty-two week high of $104.96. The business has a 50 day moving average price of $67.45 and a two-hundred day moving average price of $74.88.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.27) by $0.08. The firm 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%. The firm's revenue was up 15.8% compared to the same quarter last year. During the same quarter last year, the company earned ($0.35) earnings per share. As a group, equities analysts expect that Roku will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In other news, Director Mai Fyfield sold 914 shares of the firm's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $78.50, for a total value of $71,749.00. Following the completion of the sale, the director now owns 4,374 shares of the company's stock, valued at $343,359. This trade represents a 17.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $80.27, for a total value of $2,006,750.00. Following the transaction, the chief executive officer now directly owns 11,953 shares in the company, valued at $959,467.31. This represents a 67.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 64,737 shares of company stock valued at $4,987,114. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Several hedge funds have recently added to or reduced their stakes in the stock. Garde Capital Inc. purchased a new position in shares of Roku in the 1st quarter valued at $25,000. Banque Transatlantique SA acquired a new position in Roku in the first quarter valued at $28,000. Vision Financial Markets LLC acquired a new position in Roku in the fourth quarter valued at $30,000. Beaird Harris Wealth Management LLC purchased a new position in shares of Roku during the first quarter worth about $30,000. Finally, Golden State Wealth Management LLC increased its position in shares of Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock worth $31,000 after purchasing an additional 247 shares in the last quarter. 86.30% of the stock is currently 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.

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