Roku (NASDAQ:ROKU) Stock Price Up 2.7% After Analyst Upgrade

Roku, Inc. (NASDAQ:ROKU)’s share price rose 2.7% during mid-day trading on Thursday after Bank of America raised their price target on the stock from $100.00 to $110.00. Bank of America currently has a buy rating on the stock. Roku traded as high as $88.70 and last traded at $88.71. Approximately 705,434 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 3,839,495 shares. The stock had previously closed at $86.40.

Several other research firms have also weighed in on ROKU. UBS Group cut their target price on Roku from $90.00 to $72.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 15th. Compass Point began coverage on Roku in a research note on Sunday, March 23rd. They issued a “buy” rating on the stock. Guggenheim reissued a “buy” rating and issued a $100.00 target price on shares of Roku in a research note on Friday, May 2nd. JMP Securities reissued a “market outperform” rating and issued a $95.00 target price on shares of Roku in a research note on Tuesday, June 17th. Finally, Citigroup reaffirmed a “neutral” rating and set a $84.00 price target (up previously from $68.00) on shares of Roku in a research report on Wednesday, June 18th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $90.37.

Insider Activity at Roku

In other news, CAO Matthew C. Banks sold 629 shares of the company’s stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $72.98, for a total transaction of $45,904.42. Following the sale, the chief accounting officer owned 8,555 shares in the company, valued at $624,343.90. This represents a 6.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Mai Fyfield sold 914 shares of the company’s stock in a transaction that occurred 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 sale, the director owned 4,374 shares in the company, valued at approximately $343,359. This represents a 17.28% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 64,020 shares of company stock worth $4,979,594. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Garde Capital Inc. raised its stake in shares of Roku by 398.6% during the 2nd quarter. Garde Capital Inc. now owns 1,760 shares of the company’s stock worth $155,000 after purchasing an additional 1,407 shares in the last quarter. Kera Capital Partners Inc. acquired a new position in shares of Roku during the 2nd quarter worth approximately $245,000. Voya Investment Management LLC increased its holdings in shares of Roku by 5.4% during the 1st quarter. Voya Investment Management LLC now owns 40,288 shares of the company’s stock worth $2,838,000 after acquiring an additional 2,062 shares during the last quarter. Anderson Financial Strategies LLC acquired a new position in shares of Roku during the 1st quarter worth approximately $68,000. Finally, Strs Ohio acquired a new position in shares of Roku during the 1st quarter worth approximately $3,984,000. Institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The firm has a market capitalization of $12.86 billion, a price-to-earnings ratio of -120.72 and a beta of 2.12. The business has a fifty day moving average of $74.59 and a two-hundred day moving average of $75.33.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.27) by $0.08. The business had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The firm’s revenue was up 15.8% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.35) EPS. As a group, sell-side analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

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.