Roku (NASDAQ:ROKU) Shares Up 4.8% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 4.8% on Monday . The stock traded as high as $62.49 and last traded at $57.92. 2,674,237 shares traded hands during trading, a decline of 28% from the average session volume of 3,729,429 shares. The stock had previously closed at $55.28.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Needham & Company LLC restated a “buy” rating and set a $120.00 price target on shares of Roku in a research report on Monday, March 24th. Rosenblatt Securities restated a “neutral” rating and issued a $86.00 target price on shares of Roku in a report on Thursday, February 13th. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and lifted their target price for the stock from $65.00 to $125.00 in a research note on Friday, February 14th. UBS Group raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Thursday, March 27th. Finally, Benchmark boosted their price objective on shares of Roku from $100.00 to $130.00 and gave the company a “buy” rating in a research report on Friday, February 14th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, eighteen have assigned a buy rating and three have issued a strong buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $96.70.

Roku Price Performance

The firm’s 50 day moving average is $79.19 and its 200 day moving average is $77.25. The firm has a market cap of $8.34 billion, a P/E ratio of -64.19 and a beta of 2.17.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping the consensus estimate of ($0.44) by $0.20. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. As a group, analysts expect that Roku, Inc. will post -0.3 EPS for the current year.

Insider Activity

In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the sale, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at approximately $2,116,936.26. This represents a 48.51 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the transaction, the chief financial officer now directly owns 63,555 shares of the company’s stock, valued at $4,905,174.90. This trade represents a 1.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 97,905 shares of company stock worth $8,632,306 over the last three months. 13.98% of the stock is currently owned by corporate insiders.

Institutional Trading of Roku

Several institutional investors have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC raised its stake in shares of Roku by 23.9% in the fourth quarter. Farther Finance Advisors LLC now owns 627 shares of the company’s stock worth $47,000 after purchasing an additional 121 shares during the last quarter. United Advisor Group LLC raised its position in Roku by 0.9% in the 4th quarter. United Advisor Group LLC now owns 14,430 shares of the company’s stock worth $1,073,000 after buying an additional 130 shares during the last quarter. Cerity Partners LLC raised its position in Roku by 0.5% in the 4th 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 lifted its stake in Roku by 1.1% during the 4th quarter. Richard W. Paul & Associates LLC now owns 15,997 shares of the company’s stock valued at $1,189,000 after acquiring an additional 177 shares during the period. Finally, CIBC Asset Management Inc boosted its holdings in shares of Roku by 5.2% during the 4th quarter. CIBC Asset Management Inc now owns 3,859 shares of the company’s stock valued at $287,000 after acquiring an additional 191 shares during 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.