Roku (NASDAQ:ROKU) Shares Up 2.8% – Here’s What Happened
by Amy Steele · The Cerbat GemRoku, Inc. (NASDAQ:ROKU – Get Free Report) shares were up 2.8% on Thursday . The company traded as high as $128.85 and last traded at $125.59. Approximately 1,928,621 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 3,052,276 shares. The stock had previously closed at $122.20.
Trending Headlines about Roku
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Roku continues to expand its free ad-supported streaming lineup, adding new channels including Sports Illustrated and FIFA Plus, plus four more free channels in June. That supports engagement on The Roku Channel and could improve ad inventory and viewing time. Article Title
- Positive Sentiment: The company also launched a $25 bundle pairing the Streaming Stick Plus with Fox One, which may help drive device sales and keep Roku’s ecosystem competitive. Article Title
- Positive Sentiment: Roku has been benefiting from a bullish narrative around its growing household reach and stronger live-sports positioning, which investors may see as supportive of future ad and platform revenue. Article Title
Analyst Upgrades and Downgrades
Several brokerages have commented on ROKU. Piper Sandler reiterated an “overweight” rating on shares of Roku in a report on Friday. Evercore restated an “outperform” rating and issued a $150.00 price target on shares of Roku in a research report on Friday, February 13th. Robert W. Baird raised their price objective on shares of Roku from $130.00 to $160.00 and gave the stock an “outperform” rating in a research note on Monday, May 11th. Benchmark lifted their price objective on shares of Roku from $130.00 to $160.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Finally, Wells Fargo & Company boosted their target price on shares of Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Twenty-two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $145.29.
Read Our Latest Stock Report on ROKU
Roku Price Performance
The firm’s fifty day moving average is $115.32 and its 200 day moving average is $105.15. The firm has a market capitalization of $18.02 billion, a price-to-earnings ratio of 91.93 and a beta of 2.06.
Roku (NASDAQ:ROKU – Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the prior year, the firm earned ($0.19) EPS. The company’s revenue was up 22.4% compared to the same quarter last year. Equities research analysts forecast that Roku, Inc. will post 2.41 EPS for the current fiscal year.
Insider Transactions at Roku
In other news, CFO Dan Jedda sold 15,000 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $94.23, for a total transaction of $1,413,450.00. Following the completion of the sale, the chief financial officer directly owned 85,115 shares of the company’s stock, valued at $8,020,386.45. This trade represents a 14.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Gilbert Fuchsberg sold 9,593 shares of Roku stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $125.52, for a total value of $1,204,113.36. Following the sale, the insider owned 50,863 shares of the company’s stock, valued at approximately $6,384,323.76. This represents a 15.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 696,631 shares of company stock worth $77,636,680. 13.45% of the stock is owned by company insiders.
Institutional Inflows and Outflows
Several hedge funds have recently modified their holdings of ROKU. Blue Trust Inc. lifted its stake in shares of Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares during the last quarter. Aventura Private Wealth LLC acquired a new stake in shares of Roku in the fourth quarter worth about $26,000. Bayban boosted its stake in shares of Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after acquiring an additional 260 shares in the last quarter. WPG Advisers LLC bought a new stake in shares of Roku during the 4th quarter worth about $31,000. Finally, Safe Harbor Fiduciary LLC acquired a new position in shares of Roku during the 4th quarter valued at about $31,000. Institutional investors and hedge funds own 86.30% of the company’s stock.
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.