Key Points
- Roku CEO Anthony Wood sold 25,000 shares on Friday, June 12, at an average price of $130 each, totaling about $3.25 million. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- Roku stock was surging, trading up 20.1% and opening at $143.66, near its 52-week high of $148.88. The company’s market cap is about $21.18 billion.
- Recent operating results were strong, with Roku reporting $0.57 EPS versus $0.34 expected and $1.25 billion in revenue, beating estimates and rising 22.4% year over year. Analyst sentiment remains bullish, with multiple firms raising price targets and a consensus target of $146.96.
Roku, Inc. (NASDAQ:ROKU - Get Free Report) Director Mai Fyfield sold 832 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $119.64, for a total transaction of $99,540.48. Following the sale, the director directly owned 5,389 shares of the company's stock, valued at approximately $644,739.96. This trade represents a 13.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Roku Stock Up 20.1%
Shares of ROKU stock opened at $143.66 on Friday. The company has a market cap of $21.18 billion, a price-to-earnings ratio of 108.02 and a beta of 2.06. Roku, Inc. has a 52 week low of $73.91 and a 52 week high of $148.88. The firm has a 50 day moving average of $118.73 and a 200-day moving average of $106.23.
Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company's quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter last year, the firm posted ($0.19) EPS. Analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current year.
Hedge Funds Weigh In On Roku
Large investors have recently modified their holdings of the company. Jefferies Financial Group Inc. bought a new position in shares of Roku in the 4th quarter worth $1,345,000. Holocene Advisors LP lifted its holdings in shares of Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock worth $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. Crossmark Global Holdings Inc. bought a new position in Roku during the 3rd quarter valued at $2,997,000. MH & Associates Securities Management Corp ADV bought a new position in Roku during the 4th quarter valued at $2,398,000. Finally, Magnetar Financial LLC purchased a new position in Roku during the 3rd quarter worth $5,466,000. 86.30% of the stock is currently owned by institutional investors.
Roku News Roundup
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Roku is reportedly in sale talks, including a possible media tie-up, which could signal a strategic transaction or premium valuation if a deal materializes. Roku said to be in sale talks, including likely media tie-up, Bloomberg News reports
- Positive Sentiment: Evercore ISI raised its price target to $185 from $160 and kept a bullish rating, reinforcing optimism around Roku’s monetization efforts in its home screen and advertising-tech initiatives. Roku shares jump as fresh bullish analyst notes extend recent price-target hikes
- Positive Sentiment: Additional recent price-target hikes from firms like Morgan Stanley have added to the bullish analyst narrative, suggesting Wall Street sees more upside in Roku’s ad and platform strategy. Roku shares jump as fresh bullish analyst notes extend recent price-target hikes
- Neutral Sentiment: Several media stories highlighted Roku’s expanding free channels and consumer product discounts, but these appear more promotional than material fundamental catalysts. Roku Quietly Added Four New Free Channels For The Month Of June
- Negative Sentiment: CEO Anthony Wood sold 18,000 shares in a pre-arranged trading plan, which may add some caution, although the sale was not necessarily a bearish signal. Roku (NASDAQ:ROKU) CEO Anthony Wood Sells 18,000 Shares
Analysts Set New Price Targets
ROKU has been the subject of several recent analyst reports. Rosenblatt Securities raised their price objective on shares of Roku from $118.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Pivotal Research reaffirmed a "buy" rating and set a $160.00 price objective (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Benchmark raised their price objective on shares of Roku from $130.00 to $160.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Morgan Stanley increased their target price on Roku from $150.00 to $170.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. Finally, Guggenheim increased their target price on Roku from $140.00 to $145.00 and gave the stock a "buy" rating in a report on Tuesday. Twenty-two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $146.96.
Check Out Our Latest Analysis on ROKU
About Roku
(
Get Free Report)
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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