Roku (NASDAQ:ROKU) Shares Gap Up – What’s Next?

Roku, Inc. (NASDAQ:ROKU) shares gapped up prior to trading on Wednesday . The stock had previously closed at $75.69, but opened at $80.17. Roku shares last traded at $80.91, with a volume of 2,249,983 shares traded.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ROKU. Guggenheim raised Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a research note on Friday, August 23rd. Jefferies Financial Group dropped their price objective on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Needham & Company LLC reissued a “buy” rating and issued a $100.00 target price on shares of Roku in a research note on Wednesday. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target for the company in a research note on Thursday, September 12th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research report on Thursday, October 10th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Roku presently has an average rating of “Moderate Buy” and a consensus target price of $82.62.

Roku Trading Up 11.9 %

The firm’s fifty day moving average price is $73.68 and its two-hundred day moving average price is $65.60. The stock has a market capitalization of $12.30 billion, a PE ratio of -69.76 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. Roku’s quarterly revenue was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($2.33) EPS. As a group, sell-side analysts anticipate that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In related news, insider Charles Collier sold 10,771 shares of Roku stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.14, for a total transaction of $766,248.94. Following the transaction, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. This trade represents a 73.97 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the sale, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at $518,940.16. This represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 88,550 shares of company stock valued at $6,621,873 over the last quarter. 13.98% of the stock is currently owned by insiders.

Institutional Trading of Roku

Several institutional investors have recently added to or reduced their stakes in ROKU. Raelipskie Partnership acquired a new position in Roku during the 3rd quarter worth about $32,000. EverSource Wealth Advisors LLC boosted its position in shares of Roku by 123.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after purchasing an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC acquired a new stake in Roku in the 3rd quarter valued at about $43,000. GS Investments Inc. increased its position in Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares in the last quarter. Finally, Cedar Wealth Management LLC purchased a new position in Roku in the 2nd quarter valued at about $48,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.