Roku (NASDAQ:ROKU) Trading Up 2.7% Following Analyst Upgrade

Roku, Inc. (NASDAQ:ROKU) shares shot up 2.7% during trading on Thursday after Bank of America raised their price target on the stock from $100.00 to $110.00. Bank of America currently has a buy rating on the stock. Roku traded as high as $88.70 and last traded at $88.71. 705,434 shares were traded during mid-day trading, a decline of 82% from the average session volume of 3,839,495 shares. The stock had previously closed at $86.40.

A number of other research analysts also recently issued reports on the company. Benchmark restated a “buy” rating and set a $130.00 price target on shares of Roku in a research note on Friday, May 2nd. JMP Securities restated a “market outperform” rating and set a $95.00 price target on shares of Roku in a research note on Tuesday, June 17th. Piper Sandler began coverage on Roku in a research note on Thursday, April 17th. They set a “neutral” rating and a $65.00 price target on the stock. UBS Group dropped their price target on Roku from $90.00 to $72.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 15th. Finally, JPMorgan Chase & Co. increased their price objective on Roku from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 3rd. One research analyst has rated the stock with a sell rating, seven have given a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $90.37.

Insider Activity

In related news, CAO Matthew C. Banks sold 629 shares of Roku stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $72.98, for a total transaction of $45,904.42. Following the completion of the transaction, the chief accounting officer directly owned 8,555 shares of the company’s stock, valued at approximately $624,343.90. The trade was a 6.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 1,500 shares of the firm’s stock in a transaction on Monday, June 16th. The stock was sold at an average price of $81.32, for a total value of $121,980.00. Following the transaction, the chief financial officer directly owned 80,632 shares of the company’s stock, valued at $6,556,994.24. The trade was a 1.83% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 64,020 shares of company stock valued at $4,979,594 in the last 90 days. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently made changes to their positions in the stock. FMR LLC raised its holdings in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock worth $1,426,134,000 after acquiring an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of Roku by 2.1% in the first quarter. Vanguard Group Inc. now owns 12,503,595 shares of the company’s stock worth $880,753,000 after acquiring an additional 254,504 shares during the last quarter. Marshall Wace LLP raised its holdings in shares of Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock worth $173,644,000 after acquiring an additional 2,030,036 shares during the last quarter. T. Rowe Price Investment Management Inc. raised its holdings in shares of 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 worth $168,734,000 after acquiring an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock worth $159,353,000 after acquiring an additional 56,820 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Up 2.0%

The company has a market capitalization of $12.86 billion, a price-to-earnings ratio of -120.72 and a beta of 2.12. The stock has a fifty day moving average price of $74.15 and a two-hundred day moving average price of $75.29.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.27) by $0.08. The company had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.01 billion. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The business’s revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.35) earnings per share. As a group, research analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

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.