Roku (NASDAQ:ROKU) Trading Up 1.7% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) shot up 1.7% on Tuesday . The company traded as high as $107.42 and last traded at $106.79. 2,206,667 shares traded hands during trading, a decline of 42% from the average session volume of 3,825,527 shares. The stock had previously closed at $105.00.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on ROKU shares. Susquehanna reiterated a “positive” rating and issued a $130.00 price target on shares of Roku in a report on Friday, October 31st. UBS Group upped their target price on shares of Roku from $95.00 to $103.00 and gave the company a “neutral” rating in a research report on Monday, November 3rd. Wells Fargo & Company lifted their price target on shares of Roku from $113.00 to $116.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. Morgan Stanley restated an “underweight” rating on shares of Roku in a report on Friday, October 31st. Finally, Wedbush reaffirmed an “outperform” rating and issued a $110.00 price objective on shares of Roku in a research note on Monday, October 27th. Three analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Roku presently has an average rating of “Moderate Buy” and an average target price of $110.18.

Roku Price Performance

The business’s 50-day moving average price is $99.14 and its two-hundred day moving average price is $87.58. The company has a market capitalization of $15.78 billion, a P/E ratio of -533.92 and a beta of 2.18.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The firm had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period in the previous year, the company posted ($0.06) earnings per share. The company’s revenue for the quarter was up 14.0% on a year-over-year basis. Roku has set its Q4 2025 guidance at EPS. Research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Neil D. Hunt sold 2,000 shares of the company’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $106.61, for a total value of $213,220.00. Following the completion of the transaction, the director directly owned 7,782 shares of the company’s stock, valued at approximately $829,639.02. This represents a 20.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Anthony J. Wood sold 18,700 shares of the company’s stock in a transaction dated Thursday, October 30th. The stock was sold at an average price of $100.00, for a total value of $1,870,000.00. The SEC filing for this sale provides additional information. Insiders sold a total of 460,463 shares of company stock valued at $48,200,847 in the last quarter. 13.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Large investors have recently bought and sold shares of the company. Banque Transatlantique SA bought a new stake in shares of Roku in the first quarter worth $28,000. Beaird Harris Wealth Management LLC bought a new stake in Roku during the 1st quarter worth about $30,000. Westfuller Advisors LLC acquired a new position in shares of Roku during the 3rd quarter worth about $30,000. Root Financial Partners LLC bought a new position in shares of Roku in the 3rd quarter valued at about $33,000. Finally, Rakuten Securities Inc. increased its position in shares of Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after acquiring an additional 158 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.