Roku (NASDAQ:ROKU) Trading 0.3% Higher Following Strong Earnings

Roku, Inc. (NASDAQ:ROKU) rose 0.3% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $85.71 and last traded at $85.06. Approximately 2,140,334 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 2,906,844 shares. The stock had previously closed at $84.78.

The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Wedbush reissued an “outperform” rating and issued a $100.00 target price on shares of Roku in a report on Monday, February 10th. UBS Group upped their price objective on shares of Roku from $73.00 to $90.00 and gave the stock a “neutral” rating in a report on Friday. Benchmark lifted their price target on Roku from $100.00 to $130.00 and gave the company a “buy” rating in a research report on Friday. Jefferies Financial Group cut their target price on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Finally, Bank of America increased their price target on Roku from $90.00 to $120.00 and gave the company a “buy” rating in a research report on Friday. Three investment analysts have rated the stock with a sell rating, six have given a hold rating, fifteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Roku presently has an average rating of “Moderate Buy” and a consensus price target of $93.18.

Insider Buying and Selling at Roku

In related news, CAO Matthew C. Banks sold 8,693 shares of the business’s 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 directly owns 7,264 shares in the company, valued at $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 transaction of $766,248.94. Following the sale, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. This trade represents a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 97,885 shares of company stock worth $7,911,162 over the last 90 days. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. FMR LLC raised its position in Roku by 31.7% in the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after purchasing an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Roku by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock worth $910,597,000 after purchasing an additional 185,676 shares during the period. Marshall Wace LLP grew its position 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. T. Rowe Price Investment Management Inc. increased its stake in Roku by 10.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock valued at $168,734,000 after purchasing an additional 215,841 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock valued at $159,353,000 after buying an additional 56,820 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Stock Up 14.1 %

The company has a market capitalization of $14.38 billion, a P/E ratio of -82.56 and a beta of 2.05. The firm has a fifty day simple moving average of $80.56 and a 200-day simple moving average of $73.65.

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.