Roku (NASDAQ:ROKU) Sets New 52-Week High After Earnings Beat

Roku, Inc. (NASDAQ:ROKU)’s stock price reached a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $104.96 and last traded at $100.28, with a volume of 3451680 shares trading hands. The stock had previously closed at $86.80.

The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. UBS Group assumed coverage on shares of Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price for the company. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and upped their target price for the company from $65.00 to $125.00 in a research note on Friday. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and upped their target price for the company from $70.00 to $90.00 in a research note on Monday, November 18th. Finally, Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $74.00 to $129.00 in a research note on Friday. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating, fifteen have issued a buy rating and two have given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $90.36.

Insider Activity at Roku

In other news, insider Charles Collier sold 10,771 shares of Roku stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the transaction, the insider now owns 3,790 shares of the company’s stock, valued at $269,620.60. This trade represents a 73.97 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at approximately $2,333,486.34. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 97,885 shares of company stock valued at $7,911,162. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently modified their holdings of the stock. FMR LLC boosted its holdings in shares of Roku by 31.7% during the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock worth $1,426,134,000 after buying an additional 4,613,570 shares during the period. Vanguard Group Inc. boosted its holdings in shares of Roku by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock worth $910,597,000 after buying an additional 185,676 shares during the period. Marshall Wace LLP boosted its holdings in shares of Roku by 663.9% during the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock worth $173,644,000 after buying an additional 2,030,036 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Roku by 2.7% during the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock worth $159,353,000 after buying an additional 56,820 shares during the period. Finally, Holocene Advisors LP bought a new stake in shares of Roku during the 3rd quarter worth about $129,015,000. Institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The firm has a market cap of $14.51 billion, a P/E ratio of -82.52 and a beta of 2.05. The firm’s fifty day moving average is $80.17 and its 200 day moving average is $73.28.

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.