Roku (NASDAQ:ROKU) Stock Price Up 11.3% on Earnings Beat

Roku, Inc. (NASDAQ:ROKU)’s share price rose 11.3% on Friday following a stronger than expected earnings report. The company traded as high as $104.96 and last traded at $96.62. Approximately 11,150,977 shares were traded 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%.

Analysts Set New Price Targets

A number of analysts have commented on ROKU shares. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and upped their price target for the company from $65.00 to $125.00 in a research report on Friday. Moffett Nathanson cut shares of Roku from a “neutral” rating to a “sell” rating and set a $55.00 price target on the stock. in a research report on Friday, January 10th. Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Roku in a research report on Tuesday, January 7th. Finally, Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $74.00 to $129.00 in a research report on Friday. Three analysts have rated the stock with a sell rating, six have assigned a hold rating, fifteen have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $93.18.

Insider Buying and Selling at Roku

In other Roku news, insider Charles Collier sold 10,771 shares of the 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 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the completion of the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at approximately $2,193,100.32. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 97,885 shares of company stock worth $7,911,162. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Entropy Technologies LP grew its position in shares of Roku by 264.4% during the 4th quarter. Entropy Technologies LP now owns 25,525 shares of the company’s stock valued at $1,898,000 after acquiring an additional 18,520 shares during the period. Holocene Advisors LP bought a new position in shares of Roku during the 3rd quarter valued at approximately $129,015,000. Kessler Investment Group LLC grew its position in shares of Roku by 21.8% during the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after acquiring an additional 13,590 shares during the period. National Bank of Canada FI grew its position in shares of Roku by 11,626.3% during the 3rd quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock valued at $11,259,000 after acquiring an additional 149,514 shares during the period. Finally, EULAV Asset Management grew its position in shares of Roku by 59.1% during the 3rd quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock valued at $13,663,000 after acquiring an additional 68,000 shares during the period. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Trading Up 14.1 %

The stock’s 50-day moving average price is $80.56 and its two-hundred day moving average price is $73.65. The stock has a market capitalization of $14.38 billion, a P/E ratio of -82.56 and a beta of 2.05.

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.