Roku (NASDAQ:ROKU) Director Sells $244,220.00 in Stock

Roku, Inc. (NASDAQ:ROKU) Director Neil Hunt sold 2,000 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $122.11, for a total transaction of $244,220.00. Following the sale, the director owned 7,782 shares in the company, valued at approximately $950,260.02. The trade was a 20.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Roku Stock Performance

Shares of NASDAQ:ROKU traded down $1.58 during trading on Tuesday, reaching $124.44. 2,822,132 shares of the stock traded hands, compared to its average volume of 3,312,268. The stock has a 50-day moving average of $101.11 and a two-hundred day moving average of $101.06. Roku, Inc. has a 52-week low of $58.77 and a 52-week high of $127.90. The stock has a market cap of $18.35 billion, a P/E ratio of 93.57 and a beta of 2.04.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.23. The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. Roku had a return on equity of 7.68% and a net margin of 4.06%.The company’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the prior year, the company posted ($0.19) earnings per share. Sell-side analysts expect that Roku, Inc. will post 2.24 earnings per share for the current year.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q1 earnings beat — Roku reported stronger-than-expected Q1 revenue and EPS with platform revenue surging and record free cash flow, supporting the company’s ad/subscription monetization thesis. ROKU Shares Rise 6% on Q1 Earnings Beat, Revenues and EPS Up Y/Y
• Positive Sentiment: Content and distribution additions — Roku added 15 new free channels to its platform, which can increase engagement, ad inventory and potential ad revenue. Roku Just Added 15 New Channels — And They’re All Free
• Positive Sentiment: New low-cost subscription (Howdy) — Roku’s Howdy $3/month service is getting coverage as a viable low-price add-on that could drive ARPU and reduce churn if adoption scales. Here’s Why Howdy, Roku’s Low-Cost Streaming Service, Is Worth Your $3/Month
• Positive Sentiment: Structural cost/market tailwind — analysis suggests Roku’s low-memory hardware footprint may benefit it amid rising memory prices, potentially protecting margins vs. peers. How ROKU Stock Could Be One of the Biggest Winners of Sky-High Memory Prices
• Neutral Sentiment: Analyst update — Citigroup raised its price target to $120 but kept a “neutral” rating, signaling mixed analyst sentiment and implying limited near-term upside from that house. Benzinga coverage of analyst update
• Negative Sentiment: Class-action lawsuits alleging updates “bricked” TCL TVs running Roku software — multiple outlets report a new suit accusing Roku (with TCL) of shipping updates that rendered devices unusable; litigation and reputational risk could pressure the stock and lead to legal costs or remedial expenses. TCL and Roku sued for allegedly bricking TVs with updates Roku and TCL are being sued for allegedly bricking smart TVs ROKU and TCL accused of bricking TVs in new class action lawsuit

Analysts Set New Price Targets

Several research analysts have recently weighed in on ROKU shares. Wells Fargo & Company boosted their price objective on shares of Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a report on Friday. Jefferies Financial Group lifted their price objective on Roku from $135.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, April 13th. Bank of America lifted their price objective on Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, January 12th. Evercore reaffirmed an “outperform” rating and issued a $150.00 price objective on shares of Roku in a report on Friday, February 13th. Finally, Weiss Ratings raised Roku from a “sell (d-)” rating to a “hold (c-)” rating in a report on Tuesday, February 17th. Twenty-one analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and a consensus price target of $142.17.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ROKU. AQR Capital Management LLC lifted its holdings in Roku by 275.5% in the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Fred Alger Management LLC increased its holdings in Roku by 7,087.7% in the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock valued at $154,212,000 after acquiring an additional 1,401,664 shares during the last quarter. Holocene Advisors LP increased its holdings in Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after acquiring an additional 1,285,585 shares during the last quarter. Norges Bank bought a new stake in Roku in the 4th quarter valued at $92,808,000. Finally, Alyeska Investment Group L.P. increased its holdings in Roku by 380.9% in the 4th quarter. Alyeska Investment Group L.P. now owns 882,915 shares of the company’s stock valued at $95,787,000 after acquiring an additional 699,336 shares during the last quarter. 86.30% of the stock is 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.