Roku (NASDAQ:ROKU) Shares Gap Up – Here’s What Happened

Shares of Roku, Inc. (NASDAQ:ROKU) gapped up prior to trading on Tuesday . The stock had previously closed at $79.91, but opened at $84.20. Roku shares last traded at $83.91, with a volume of 609,013 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on ROKU. Wells Fargo & Company increased their price objective on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 31st. Needham & Company LLC reiterated a “buy” rating and set a $100.00 price target on shares of Roku in a research report on Tuesday. Wolfe Research upgraded shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective for the company in a research report on Thursday, September 12th. UBS Group began coverage on Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price target on the stock. Finally, Bank of America upped their price objective on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Roku presently has a consensus rating of “Moderate Buy” and an average target price of $83.81.

Roku Stock Up 6.4 %

The company has a market capitalization of $12.05 billion, a price-to-earnings ratio of -69.17 and a beta of 2.05. The stock has a 50 day moving average of $75.50 and a 200 day moving average of $69.71.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same period in the prior year, the firm posted ($2.33) EPS. The company’s quarterly revenue was up 16.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Transactions at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the sale, the chief financial officer now directly owns 65,555 shares in the company, valued at approximately $4,916,625. This trade represents a 1.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 10,771 shares of the stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.14, for a total transaction of $766,248.94. Following the transaction, the insider now directly owns 3,790 shares in the company, valued at $269,620.60. This trade represents a 73.97 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 48,095 shares of company stock valued at $3,731,038. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ROKU. FMR LLC increased its holdings in shares of Roku by 1.7% during the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after acquiring an additional 244,793 shares in the last quarter. Holocene Advisors LP acquired a new stake in Roku in the 3rd quarter valued at $129,015,000. Westfield Capital Management Co. LP increased its stake in Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after purchasing an additional 856,401 shares in the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Roku by 3.2% during the third quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock worth $71,373,000 after buying an additional 30,038 shares during the last quarter. Finally, Point72 Asset Management L.P. raised its holdings in Roku by 352.5% during the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after buying an additional 507,643 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

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.