Roku Sees Unusually Large Options Volume (NASDAQ:ROKU)

Roku, Inc. (NASDAQ:ROKU) saw unusually large options trading on Monday. Stock traders bought 52,887 call options on the company. This represents an increase of 64% compared to the typical daily volume of 32,308 call options.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company increased their target price 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. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price for the company in a report on Thursday, September 12th. Benchmark reissued a “buy” rating and set a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Rosenblatt Securities lifted their target price on shares of Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Finally, Jefferies Financial Group lowered 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. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $82.62.

Insiders Place Their Bets

In other news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the sale, the chief financial officer now owns 65,555 shares of the company’s stock, valued at approximately $4,916,625. This represents a 1.50 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total value of $1,930,000.00. Following the sale, the chief executive officer now directly owns 5,020 shares in the company, valued at $387,544. This represents a 83.28 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 90,240 shares of company stock worth $6,729,582 over the last ninety days. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors have recently added to or reduced their stakes in ROKU. Raelipskie Partnership bought a new position in shares of Roku in the third quarter worth about $32,000. EverSource Wealth Advisors LLC raised its stake in shares of Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after acquiring an additional 375 shares during the last quarter. Future Financial Wealth Managment LLC bought a new position in shares of Roku in the third quarter worth about $43,000. GS Investments Inc. raised its stake in shares of Roku by 33.4% in the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after acquiring an additional 147 shares during the last quarter. Finally, Cedar Wealth Management LLC bought a new position in shares of Roku in the second quarter worth about $48,000. 86.30% of the stock is owned by institutional investors.

Roku Price Performance

Shares of Roku stock traded up $8.02 during trading on Monday, hitting $77.05. 8,206,365 shares of the company’s stock traded hands, compared to its average volume of 4,414,370. The firm’s fifty day moving average price is $73.63 and its 200 day moving average price is $65.38. Roku has a twelve month low of $48.33 and a twelve month high of $108.84. The company has a market cap of $11.19 billion, a PE ratio of -57.52 and a beta of 2.07.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same period last year, the firm posted ($2.33) EPS. The firm’s quarterly revenue was up 16.5% on a year-over-year basis. As a group, equities research analysts anticipate that Roku will post -1.1 earnings per share for the current year.

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.