Roku, Inc. (NASDAQ:ROKU – Get Free Report) shares rose 1.4% during trading on Wednesday . The stock traded as high as $158.22 and last traded at $157.70. 2,488,475 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 3,538,043 shares. The stock had previously closed at $155.53.
Roku News Summary
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Improving earnings outlook: Zacks gave Roku a No. 1, “Strong Buy,” ranking based on bullish EPS revisions. The outlook builds on Roku’s latest quarterly results, which exceeded analyst expectations for both earnings and revenue. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
- Positive Sentiment: Technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving short-term momentum and investor support. Roku Just Overtook the 20-Day Moving Average
- Positive Sentiment: Expansion into premium televisions: Roku’s new Pro Series OLED televisions, starting at $999, could strengthen its brand in higher-end hardware and create additional opportunities to monetize its streaming platform. Roku’s $999 OLED Could Change How TV Makers Make Money
- Neutral Sentiment: Platform and product activity: Pluto TV rolled out a major update on Roku devices, while Roku Streaming Stick Plus returned to its previous Amazon price. These developments may support engagement and sales, but their direct effect on revenue is unclear. Pluto TV Update on Roku Devices
- Negative Sentiment: Insider selling: Directors and executives sold approximately 20,846 shares worth $3.25 million. Most transactions were conducted under pre-arranged Rule 10b5-1 plans, with several sales used to cover tax withholding on vested equity awards, limiting the bearish signal. Nevertheless, the concentration of sales could weigh modestly on sentiment. Roku Insider Selling
Wall Street Analysts Forecast Growth
ROKU has been the subject of a number of research reports. JPMorgan Chase & Co. initiated coverage on Roku in a research note on Monday, August 24th. They issued a “neutral” rating and a $160.00 price objective for the company. Jefferies Financial Group lowered Roku from a “buy” rating to a “hold” rating and set a $160.00 target price on the stock. in a research report on Monday, June 15th. Citizens Jmp downgraded shares of Roku from a “market outperform” rating to a “hold” rating in a research report on Tuesday, June 16th. Fox Advisors set a $157.00 price target on shares of Roku in a research report on Friday, July 17th. Finally, William Blair lowered shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $156.17.
Roku Trading Up 0.4%
The stock has a market capitalization of $23.50 billion, a P/E ratio of 67.65 and a beta of 2.05. The business has a fifty day simple moving average of $148.16 and a 200 day simple moving average of $124.48.
Roku (NASDAQ:ROKU – Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.47. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%.Roku’s quarterly revenue was up 21.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 earnings per share. As a group, research analysts forecast that Roku, Inc. will post 2.85 earnings per share for the current year.
Insider Transactions at Roku
In related news, CEO Anthony Wood sold 25,000 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $130.00, for a total transaction of $3,250,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 10,719 shares of Roku stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $150.00, for a total value of $1,607,850.00. Following the sale, the insider owned 40,380 shares in the company, valued at $6,057,000. This trade represents a 20.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 145,773 shares of company stock worth $20,575,950. 13.45% of the stock is owned by insiders.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LP increased its stake in shares of Roku by 58.7% during the 2nd quarter. Corient Private Wealth LP now owns 133,101 shares of the company’s stock worth $18,387,000 after purchasing an additional 49,233 shares during the last quarter. Absolute Gestao de Investimentos Ltda. purchased a new position in Roku in the second quarter valued at approximately $8,427,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Roku during the second quarter valued at $4,474,000. California State Teachers Retirement System increased its position in Roku by 13,741.7% in the second quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company’s stock worth $2,888,886,000 after buying an additional 20,761,653 shares during the last quarter. Finally, Readystate Asset Management LP purchased a new stake in Roku in the second quarter worth $22,373,000. 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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