Roku Sees Unusually High Options Volume (NASDAQ:ROKU)

Roku, Inc. (NASDAQ:ROKU) saw some unusual options trading on Wednesday. Stock traders purchased 85,814 call options on the company. This represents an increase of approximately 71% compared to the average daily volume of 50,053 call options.

Roku Stock Performance

NASDAQ ROKU opened at $57.16 on Thursday. The firm has a 50-day simple moving average of $57.87 and a 200 day simple moving average of $71.16. Roku has a twelve month low of $51.51 and a twelve month high of $108.84. The stock has a market cap of $8.24 billion, a PE ratio of -14.33 and a beta of 1.92.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, April 25th. The company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.64) by $0.29. Roku had a negative net margin of 15.64% and a negative return on equity of 23.81%. The business had revenue of $881.50 million during the quarter, compared to analysts’ expectations of $843.54 million. During the same quarter last year, the company earned ($1.38) earnings per share. The firm’s revenue was up 19.0% on a year-over-year basis. Research analysts forecast that Roku will post -1.94 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently weighed in on ROKU. Wedbush dropped their price target on shares of Roku from $80.00 to $75.00 and set an “outperform” rating on the stock in a research note on Friday, April 26th. Susquehanna lowered their target price on shares of Roku from $110.00 to $80.00 and set a “positive” rating on the stock in a research report on Monday, April 29th. Seaport Res Ptn raised shares of Roku from a “neutral” rating to a “buy” rating in a research report on Monday, April 29th. Wells Fargo & Company increased their target price on shares of Roku from $45.00 to $52.00 and gave the stock an “underweight” rating in a research report on Friday, April 26th. Finally, Rosenblatt Securities reissued a “neutral” rating and set a $89.00 target price on shares of Roku in a research report on Friday, April 26th. Four investment analysts have rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat, Roku presently has an average rating of “Hold” and an average price target of $82.50.

Insider Activity

In other news, SVP Stephen H. Kay sold 12,124 shares of the stock in a transaction on Thursday, June 13th. The stock was sold at an average price of $55.59, for a total value of $673,973.16. Following the completion of the sale, the senior vice president now owns 91,905 shares in the company, valued at $5,108,998.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, SVP Stephen H. Kay sold 3,322 shares of the company’s stock in a transaction on Tuesday, June 4th. The shares were sold at an average price of $57.09, for a total value of $189,652.98. Following the transaction, the senior vice president now directly owns 82,036 shares of the company’s stock, valued at $4,683,435.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Stephen H. Kay sold 12,124 shares of the company’s stock in a transaction on Thursday, June 13th. The stock was sold at an average price of $55.59, for a total transaction of $673,973.16. Following the completion of the transaction, the senior vice president now directly owns 91,905 shares in the company, valued at $5,108,998.95. The disclosure for this sale can be found here. Insiders sold 23,898 shares of company stock worth $1,347,966 over the last quarter. Corporate insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several hedge funds have recently made changes to their positions in ROKU. Vanguard Group Inc. increased its holdings in shares of Roku by 0.8% in the first quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock valued at $778,560,000 after purchasing an additional 92,658 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. grew its holdings in Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock worth $478,939,000 after acquiring an additional 1,457,925 shares during the period. Nikko Asset Management Americas Inc. grew its holdings in Roku by 25.8% during the 1st quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock worth $462,108,000 after acquiring an additional 1,455,408 shares during the period. Wellington Management Group LLP grew its holdings in Roku by 34.6% during the 3rd quarter. Wellington Management Group LLP now owns 2,543,081 shares of the company’s stock worth $179,516,000 after acquiring an additional 653,940 shares during the period. Finally, Norges Bank acquired a new stake in Roku during the 4th quarter worth $90,386,000. Institutional investors 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.