Roku (NASDAQ:ROKU) Shares Up 0.3% on Earnings Beat

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 0.3% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $85.71 and last traded at $85.06. 2,140,334 shares traded hands during mid-day trading, a decline of 26% from the average session volume of 2,906,844 shares. The stock had previously closed at $84.78.

The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. Piper Sandler lifted their target price on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Jefferies Financial Group dropped their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a report on Friday, November 1st. Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $74.00 to $129.00 in a report on Friday. Moffett Nathanson lowered Roku from a “neutral” rating to a “sell” rating and set a $55.00 price objective for the company. in a report on Friday, January 10th. Finally, Macquarie reissued an “outperform” rating and issued a $90.00 target price on shares of Roku in a research note on Thursday, October 31st. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating, fifteen have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $93.18.

Insider Activity

In other Roku news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction dated Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the sale, the chief financial officer now owns 65,555 shares in the company, valued at $4,916,625. This represents a 1.50 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Charles Collier sold 10,771 shares of the stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the sale, the insider now owns 3,790 shares of the company’s stock, valued at $269,620.60. This represents a 73.97 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 97,885 shares of company stock worth $7,911,162 over the last three months. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several hedge funds have recently modified their holdings of ROKU. Entropy Technologies LP increased its stake in Roku by 264.4% during the fourth quarter. Entropy Technologies LP now owns 25,525 shares of the company’s stock worth $1,898,000 after acquiring an additional 18,520 shares during the last quarter. Holocene Advisors LP bought a new stake in Roku during the 3rd quarter valued at $129,015,000. Kessler Investment Group LLC increased its position in Roku by 21.8% during the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after purchasing an additional 13,590 shares during the period. National Bank of Canada FI raised its stake in Roku by 11,626.3% in the third quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock worth $11,259,000 after buying an additional 149,514 shares in the last quarter. Finally, EULAV Asset Management lifted its position in shares of Roku by 59.1% during the third quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock valued at $13,663,000 after buying an additional 68,000 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Price Performance

The company has a market cap of $14.38 billion, a PE ratio of -82.56 and a beta of 2.05. The stock’s 50-day moving average is $80.56 and its 200 day moving average is $73.65.

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.