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

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

The company reported ($0.24) earnings per share (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%.

Analysts Set New Price Targets

A number of research firms recently commented on ROKU. JPMorgan Chase & Co. raised their price objective on shares of Roku from $92.00 to $115.00 and gave the stock an “overweight” rating in a research note on Friday. Bank of America raised their price objective on shares of Roku from $90.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price objective on shares of Roku in a research note on Tuesday, January 7th. Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $74.00 to $129.00 in a research note on Friday. Finally, Piper Sandler raised their price objective on shares of Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating, fifteen have given a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, Roku currently has a consensus rating of “Moderate Buy” and a consensus target price of $90.36.

Insider Transactions at Roku

In related news, insider Charles Collier sold 10,771 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.14, for a total transaction of $766,248.94. Following the completion of the sale, the insider now directly owns 3,790 shares of the company’s stock, valued at $269,620.60. The trade was a 73.97 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction on 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. The trade was a 54.48 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 97,885 shares of company stock worth $7,911,162. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Large investors have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC boosted its holdings in shares of Roku by 23.9% during the 4th quarter. Farther Finance Advisors LLC now owns 627 shares of the company’s stock worth $47,000 after buying an additional 121 shares during the period. Cerity Partners LLC grew its holdings in Roku by 0.5% during the 4th quarter. Cerity Partners LLC now owns 26,679 shares of the company’s stock worth $1,984,000 after acquiring an additional 145 shares during the last quarter. GS Investments Inc. boosted its stake in shares of Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after purchasing an additional 147 shares during the last quarter. PFG Investments LLC boosted its stake in shares of Roku by 3.7% in the 3rd quarter. PFG Investments LLC now owns 4,157 shares of the company’s stock valued at $310,000 after purchasing an additional 150 shares during the last quarter. Finally, True Vision MN LLC boosted its stake in shares of Roku by 3.1% in the 3rd quarter. True Vision MN LLC now owns 5,018 shares of the company’s stock valued at $375,000 after purchasing an additional 152 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Performance

The stock’s 50 day moving average price is $80.17 and its 200 day moving average price is $73.28. The company has a market capitalization of $14.03 billion, a P/E ratio of -81.07 and a beta of 2.05.

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.