Roku (NASDAQ:ROKU) Trading Up 3.7% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s share price rose 3.7% during mid-day trading on Wednesday . The company traded as high as $98.95 and last traded at $97.51. Approximately 4,546,742 shares were traded during mid-day trading, an increase of 18% from the average daily volume of 3,855,676 shares. The stock had previously closed at $94.07.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Morgan Stanley set a $135.00 price target on shares of Roku and gave the company an “overweight” rating in a research report on Tuesday, December 16th. Citigroup restated a “market outperform” rating on shares of Roku in a report on Monday. Citizens Jmp reiterated a “market outperform” rating and issued a $145.00 price target on shares of Roku in a report on Tuesday, December 2nd. Oppenheimer raised their target price on shares of Roku from $105.00 to $120.00 and gave the stock an “outperform” rating in a research report on Friday, February 13th. Finally, Wedbush lifted their target price on shares of Roku from $130.00 to $140.00 and gave the company an “outperform” rating in a research note on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $125.40.

Roku Stock Up 3.7%

The firm’s fifty day moving average price is $99.99 and its two-hundred day moving average price is $99.45. The stock has a market capitalization of $14.38 billion, a PE ratio of 171.07 and a beta of 1.98.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The company had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.35 billion. During the same period last year, the firm earned ($0.24) EPS. Roku’s revenue for the quarter was up 16.1% compared to the same quarter last year. As a group, analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insiders Place Their Bets

In other Roku news, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total transaction of $192,960.00. Following the completion of the sale, the director directly owned 7,782 shares of the company’s stock, valued at $750,807.36. This trade represents a 20.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of Roku stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $108.78, for a total transaction of $353,535.00. Following the sale, the insider owned 59,094 shares in the company, valued at approximately $6,428,245.32. The trade was a 5.21% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 216,979 shares of company stock worth $22,499,335. 13.98% of the stock is currently owned by insiders.

Institutional Trading of Roku

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. Vanguard Group Inc. increased its holdings in shares of Roku by 2.5% in the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock worth $1,301,557,000 after purchasing an additional 322,858 shares during the last quarter. AQR Capital Management LLC grew its holdings in Roku by 10.6% during the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock valued at $310,298,000 after buying an additional 274,024 shares in the last quarter. Acadian Asset Management LLC increased its stake in Roku by 41.2% in the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after acquiring an additional 785,864 shares during the last quarter. Geode Capital Management LLC increased its holdings in Roku by 7.3% during the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock valued at $267,389,000 after buying an additional 168,214 shares during the period. Finally, Tableaux LLC bought a new position in shares of Roku in the 2nd quarter worth $1,746,000. 86.30% of the stock is currently owned by institutional investors.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.