Roku (NASDAQ:ROKU) Shares Up 11.6% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) was up 11.6% during mid-day trading on Tuesday . The company traded as high as $77.30 and last traded at $77.05. Approximately 8,292,402 shares changed hands during mid-day trading, an increase of 119% from the average daily volume of 3,784,015 shares. The stock had previously closed at $69.03.

Analyst Ratings Changes

A number of analysts have recently issued reports on ROKU shares. Guggenheim raised shares of 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. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price objective on shares of Roku in a research note on Wednesday. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. Benchmark reissued a “buy” rating and issued a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Finally, Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and raised their target price for the company from $70.00 to $90.00 in a research note on Monday, November 18th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Roku currently has a consensus rating of “Moderate Buy” and an average target price of $82.62.

Roku Stock Up 9.6 %

The company’s fifty day moving average price is $73.86 and its 200-day moving average price is $65.72.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.35) by $0.29. The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business’s revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the business earned ($2.33) EPS. On average, research analysts expect that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Transactions at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the completion of the sale, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at $376,500. The trade was a 83.28 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the business’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 approximately $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 88,550 shares of company stock worth $6,621,873. 13.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roku

Large investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC boosted its position in Roku by 238.6% in the 2nd quarter. SG Americas Securities LLC now owns 73,528 shares of the company’s stock valued at $4,407,000 after buying an additional 51,815 shares during the period. Kessler Investment Group LLC lifted its position in shares of Roku by 21.8% in the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock worth $5,672,000 after purchasing an additional 13,590 shares during the period. Holocene Advisors LP purchased a new stake in shares of Roku in the 3rd quarter worth approximately $129,015,000. Cetera Investment Advisers lifted its position in shares of Roku by 240.3% in the 1st quarter. Cetera Investment Advisers now owns 41,805 shares of the company’s stock worth $2,724,000 after purchasing an additional 29,521 shares during the period. Finally, EULAV Asset Management lifted its position in shares of Roku by 59.1% in the 3rd quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock worth $13,663,000 after purchasing an additional 68,000 shares during the period. 86.30% of the stock is 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.