Roku (NASDAQ:ROKU) Shares Up 11.3% After Strong Earnings

Roku, Inc. (NASDAQ:ROKU)’s share price was up 11.3% on Friday following a stronger than expected earnings report. The stock traded as high as $104.96 and last traded at $96.62. Approximately 11,150,977 shares traded hands during trading, an increase of 225% from the average daily volume of 3,432,463 shares. The stock had previously closed at $86.80.

The company reported ($0.24) EPS for the quarter, beating analysts’ consensus estimates 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 Analyst Weigh In

ROKU has been the topic of a number of research reports. JPMorgan Chase & Co. boosted their target price on shares of Roku from $92.00 to $115.00 and gave the company an “overweight” rating in a research report on Friday. Citizens Jmp upgraded shares of Roku to a “strong-buy” rating in a research report on Tuesday, January 21st. UBS Group started coverage on shares of Roku in a research report on Friday, November 22nd. They set a “neutral” rating and a $73.00 target price on the stock. Macquarie restated an “outperform” rating and set a $90.00 price objective on shares of Roku in a report on Thursday, October 31st. Finally, Wedbush restated an “outperform” rating and set a $100.00 price objective on shares of Roku in a report on Monday. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating, fifteen have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $90.36.

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the 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 owns 26,538 shares in the company, valued at approximately $2,333,486.34. This represents a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. This represents a 54.48 % 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 worth $7,911,162. 13.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Farther Finance Advisors LLC boosted its position in Roku by 23.9% during the fourth quarter. Farther Finance Advisors LLC now owns 627 shares of the company’s stock worth $47,000 after purchasing an additional 121 shares during the period. Cerity Partners LLC boosted its position in Roku by 0.5% during the fourth quarter. Cerity Partners LLC now owns 26,679 shares of the company’s stock worth $1,984,000 after purchasing an additional 145 shares during the period. GS Investments Inc. boosted its position in Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after purchasing an additional 147 shares during the period. PFG Investments LLC boosted its position in Roku by 3.7% during the third quarter. PFG Investments LLC now owns 4,157 shares of the company’s stock worth $310,000 after purchasing an additional 150 shares during the period. Finally, True Vision MN LLC boosted its position in Roku by 3.1% during the third quarter. True Vision MN LLC now owns 5,018 shares of the company’s stock worth $375,000 after purchasing an additional 152 shares during the period. Institutional investors own 86.30% of the company’s stock.

Roku Stock Up 11.3 %

The stock has a market cap of $14.03 billion, a P/E ratio of -81.07 and a beta of 2.05. The business’s 50-day simple moving average is $80.17 and its two-hundred day simple moving average is $73.28.

About Roku

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.