Roku (NASDAQ:ROKU) Stock Price Up 2.1% After Earnings Beat

Roku, Inc. (NASDAQ:ROKU) shot up 2.1% on Thursday following a stronger than expected earnings report. The stock traded as high as $150.61 and last traded at $150.07. Approximately 3,814,299 shares were traded during trading, an increase of 3% from the average daily volume of 3,715,770 shares. The stock had previously closed at $146.96.

The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.60 by $0.48. Roku had a net margin of 4.06% and a return on equity of 7.64%. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.30 billion.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Analysts are revising forecasts ahead of Roku’s earnings call, with investors focused on platform revenue, advertising demand, user engagement and management’s outlook. Strong results or guidance could provide additional support for the stock. Benzinga analyst forecast article
• Positive Sentiment: Roku expanded its free, ad-supported live-TV lineup with four new channels. The additional content may help increase viewing time and strengthen Roku’s advertising ecosystem, although the near-term financial impact is likely modest. Roku free live TV channels article
• Neutral Sentiment: An upcoming Aurzen Roku TV portable projector is being promoted at a preorder price below $70. The product could increase Roku-branded platform exposure, but it appears to be a third-party device and is unlikely to materially change near-term results. Android Authority projector article
• Negative Sentiment: Several insiders reported stock sales, including Charles Collier’s sale of 20,538 shares and additional sales by Director Neil Hunt and CAO Matthew Banks. Because the transactions were executed under pre-arranged Rule 10b5-1 plans, they are less conclusive as a signal of management’s outlook, but the sales may weigh modestly on sentiment. Roku insider trading article
• Negative Sentiment: Roku’s shares have approached a three-year high while trading at a high earnings multiple. This leaves limited room for disappointment: weaker device sales, slowing advertising growth or cautious guidance could prompt a sharp reaction following the earnings release. Schaeffers Research earnings article

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the company. Pivotal Research restated a “buy” rating and issued a $160.00 price target (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Wells Fargo & Company upped their price objective on shares of Roku from $137.00 to $167.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. Needham & Company LLC increased their target price on Roku from $140.00 to $170.00 and gave the stock a “buy” rating in a research note on Monday, June 15th. Weiss Ratings reissued a “hold (c-)” rating on shares of Roku in a research report on Friday, May 15th. Finally, Piper Sandler downgraded Roku from an “overweight” rating to a “neutral” rating and boosted their price objective for the stock from $148.00 to $160.00 in a research report on Tuesday, June 16th. Ten equities research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $155.12.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 7,000 shares of the company’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $122.56, for a total transaction of $857,920.00. Following the completion of the transaction, the chief financial officer owned 71,115 shares in the company, valued at approximately $8,715,854.40. This represents a 8.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was sold at an average price of $128.79, for a total transaction of $9,659,250.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 226,733 shares of company stock valued at $29,862,532. Company insiders own 13.45% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Blue Trust Inc. lifted its stake in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares during the period. Bayban lifted its holdings in Roku by 1,300.0% in 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. WPG Advisers LLC purchased a new stake in Roku in the 4th quarter worth approximately $31,000. Safe Harbor Fiduciary LLC purchased a new position in Roku during the fourth quarter worth about $31,000. Finally, Rakuten Securities Inc. grew its holdings in Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after purchasing an additional 158 shares during the period. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Up 2.1%

The stock has a market cap of $22.12 billion, a price-to-earnings ratio of 112.84 and a beta of 2.01. The stock has a fifty day moving average of $137.55 and a two-hundred day moving average of $115.71.

Roku Company Profile

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.