Roku (NASDAQ:ROKU) Shares Up 4.9% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price rose 4.9% on Monday . The stock traded as high as $98.93 and last traded at $97.81. Approximately 2,566,956 shares traded hands during trading, a decline of 29% from the average daily volume of 3,610,590 shares. The stock had previously closed at $93.27.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on ROKU shares. JPMorgan Chase & Co. increased their price objective on shares of Roku from $115.00 to $125.00 and gave the stock an “overweight” rating in a research note on Friday, December 12th. Citigroup reaffirmed a “market outperform” rating on shares of Roku in a report on Monday, March 2nd. Piper Sandler reiterated an “overweight” rating and issued a $140.00 price target (up from $135.00) on shares of Roku in a research note on Friday, February 13th. Stifel Nicolaus set a $160.00 price target on Roku in a report on Monday, March 2nd. Finally, Guggenheim boosted their price objective on Roku from $110.00 to $115.00 and gave the company a “buy” rating in a research report on Thursday, December 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $125.40.

Roku Price Performance

The business has a 50-day moving average of $96.40 and a 200 day moving average of $99.70. The company has a market capitalization of $14.42 billion, a PE ratio of 171.60 and a beta of 1.98.

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

Insider Transactions at Roku

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $95.57, for a total transaction of $310,602.50. Following the completion of the transaction, the insider owned 60,456 shares in the company, valued at $5,777,779.92. This trade represents a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Christopher T. Handman sold 2,999 shares of Roku stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total transaction of $286,614.43. Following the completion of the transaction, the senior vice president directly owned 2,999 shares of the company’s stock, valued at $286,614.43. The trade was a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 213,124 shares of company stock valued at $21,433,878 in the last 90 days. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several hedge funds have recently made changes to their positions in ROKU. AQR Capital Management LLC grew its position in Roku by 275.5% in the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after acquiring an additional 1,897,407 shares in the last quarter. Fred Alger Management LLC raised its position in Roku by 7,087.7% during the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock valued at $154,212,000 after purchasing an additional 1,401,664 shares during the period. Holocene Advisors LP lifted its stake in shares of Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after purchasing an additional 1,285,585 shares during the last quarter. Norges Bank bought a new stake in shares of Roku in the 4th quarter valued at approximately $92,808,000. Finally, Alyeska Investment Group L.P. boosted its holdings in shares of Roku by 380.9% in the 4th quarter. Alyeska Investment Group L.P. now owns 882,915 shares of the company’s stock worth $95,787,000 after purchasing an additional 699,336 shares during the period. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Company Profile

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.