Roku, Inc. (NASDAQ:ROKU – Get Free Report) SVP Christopher Handman sold 2,999 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $466,764.36. Following the sale, the senior vice president owned 8,997 shares in the company, valued at approximately $1,400,293.08. This trade represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Roku Price Performance
NASDAQ:ROKU opened at $155.59 on Friday. The firm has a market capitalization of $23.09 billion, a price-to-earnings ratio of 66.49 and a beta of 2.05. The business has a 50 day simple moving average of $148.57 and a 200-day simple moving average of $124.70. Roku, Inc. has a 1 year low of $78.53 and a 1 year high of $159.89.
Roku (NASDAQ:ROKU – Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%.The firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter in the previous year, the company posted $0.07 EPS. The company’s revenue for the quarter was up 21.9% compared to the same quarter last year. As a group, analysts expect that Roku, Inc. will post 2.85 earnings per share for the current fiscal year.
Roku News Roundup
- Positive Sentiment: Improving earnings outlook: Zacks assigned Roku a No. 1 “Strong Buy” ranking, citing upward EPS revisions. The rating follows Roku’s latest quarterly results, which exceeded consensus estimates for both earnings and revenue, with revenue rising 21.9% year over year. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
- Positive Sentiment: Short-term technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving near-term trading momentum and investor support. Roku Just Overtook the 20-Day Moving Average
- Positive Sentiment: Premium hardware expansion: Roku’s Pro Series OLED televisions, starting at $999, could improve its position in higher-end TV hardware and provide additional opportunities to monetize its platform. Roku’s $999 OLED Could Change How TV Makers Make Money
- Neutral Sentiment: Platform activity: Pluto TV launched a major update on Roku TVs and players, while the Roku Streaming Stick Plus returned to its prior Amazon price. These developments may support engagement and device demand, but their direct impact on near-term revenue is unclear. Pluto TV Rolls Out an Update on Roku Devices
- Neutral Sentiment: Consumer support coverage: Articles describing simple Roku troubleshooting steps and retail discounts for Roku TVs may help customer experience and product sales, but are unlikely to materially affect valuation. Common Roku Problems
- Negative Sentiment: Concentrated insider selling: Executives and directors sold a combined 20,846 shares worth roughly $3.25 million. The transactions were made under pre-arranged Rule 10b5-1 plans, and most covered tax withholding on vested equity awards, reducing the bearish significance. Still, the volume of selling may weigh on sentiment, particularly with ROKU near its annual high. Roku Insider Selling
Wall Street Analysts Forecast Growth
A number of equities analysts recently commented on ROKU shares. Seaport Research Partners cut shares of Roku from a “buy” rating to a “neutral” rating in a research note on Friday, August 7th. Piper Sandler downgraded shares of Roku from an “overweight” rating to a “neutral” rating and raised their price objective for the stock from $148.00 to $160.00 in a research note on Tuesday, June 16th. Needham & Company LLC restated a “buy” rating on shares of Roku in a research report on Friday, August 7th. Guggenheim cut Roku from a “buy” rating to a “neutral” rating and upped their target price for the company from $145.00 to $160.00 in a research note on Friday, August 7th. Finally, Wells Fargo & Company reiterated an “equal weight” rating and issued a $165.00 price target (down from $167.00) on shares of Roku in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the company’s stock. Based on data from MarketBeat, Roku has a consensus rating of “Hold” and an average price target of $156.17.
Get Our Latest Research Report on Roku
Institutional Inflows and Outflows
Institutional investors have recently bought and sold shares of the company. Bayban raised its position in Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after purchasing an additional 260 shares in the last quarter. Safe Harbor Fiduciary LLC bought a new position in shares of Roku during the 4th quarter worth $31,000. Rakuten Securities Inc. increased its stake in shares of Roku by 55.6% during the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after buying an additional 158 shares during the period. Elevation Wealth Partners LLC increased its stake in shares of Roku by 208.7% during the second quarter. Elevation Wealth Partners LLC now owns 318 shares of the company’s stock valued at $44,000 after buying an additional 215 shares during the period. Finally, Osbon Capital Management LLC bought a new stake in shares of Roku in the fourth quarter valued at about $45,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.
About Roku
Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.
At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.
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