Roku (NASDAQ:ROKU) CAO Sells $84,979.44 in Stock

Roku, Inc. (NASDAQ:ROKU) CAO Matthew Banks sold 546 shares of Roku stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $84,979.44. Following the transaction, the chief accounting officer directly owned 8,122 shares in the company, valued at approximately $1,264,108.08. This represents a 6.30% decrease in their position. The transaction was disclosed in a filing 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 Stock Down 1.7%

ROKU stock opened at $155.59 on Friday. The firm has a market cap of $23.09 billion, a PE ratio of 66.49 and a beta of 2.05. The business has a 50 day moving average of $148.57 and a 200-day moving average of $124.70. Roku, Inc. has a 12-month low of $78.53 and a 12-month high of $159.89.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%.The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same period last year, the business posted $0.07 earnings per share. Roku’s revenue was up 21.9% on a year-over-year basis. On average, research analysts expect that Roku, Inc. will post 2.85 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. KeyCorp downgraded shares of Roku from an “overweight” rating to a “sector weight” rating in a report on Monday, June 15th. Fox Advisors set a $157.00 price objective on shares of Roku in a report on Friday, July 17th. Wolfe Research lowered shares of Roku from an “outperform” rating to a “peer perform” rating in a research report on Tuesday, June 16th. William Blair cut shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Roku in a research report on Friday, August 7th. One research 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. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $156.17.

Institutional Investors Weigh In On Roku

Large investors have recently added to or reduced their stakes in the company. Empowered Funds LLC lifted its holdings in Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after purchasing an additional 515 shares during the last quarter. Focus Partners Wealth bought a new stake in shares of Roku in the first quarter valued at approximately $229,000. EverSource Wealth Advisors LLC raised its position in shares of Roku by 145.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock valued at $123,000 after purchasing an additional 826 shares during the period. First Trust Advisors LP lifted its stake in shares of Roku by 231.0% during the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock valued at $6,221,000 after buying an additional 49,399 shares in the last quarter. Finally, Brown Advisory Inc. purchased a new stake in shares of Roku during the 2nd quarter valued at approximately $326,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• 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

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.