Key Points
- Roku insider Gilbert Fuchsberg sold 10,719 shares at an average price of $150, generating $1.61 million. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced his stake by 20.98% to 40,380 shares.
- Roku reported strong quarterly results, with revenue rising 21.9% year over year to $1.35 billion and earnings of $1.08 per share, beating analyst estimates of $1.30 billion and $0.61, respectively.
- Shares opened at $153.11 near their 52-week high, while analysts maintained a consensus “Hold” rating and an average price target of $155.75, reflecting limited implied upside.
Roku, Inc. (NASDAQ:ROKU - Get Free Report) insider Gilbert Fuchsberg sold 10,719 shares of the stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $150.00, for a total transaction of $1,607,850.00. Following the sale, the insider owned 40,380 shares in the company, valued at approximately $6,057,000. This trade represents a 20.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Gilbert Fuchsberg also recently made the following trade(s):
- On Tuesday, June 2nd, Gilbert Fuchsberg sold 4,376 shares of Roku stock. The stock was sold at an average price of $127.26, for a total transaction of $556,889.76.
Roku Stock Up 2.0%
Shares of ROKU stock opened at $153.11 on Friday. The business has a 50 day moving average of $138.39 and a two-hundred day moving average of $116.30. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $153.54. The company has a market cap of $22.57 billion, a P/E ratio of 65.43 and a beta of 2.01.
Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, topping analysts' consensus estimates of $0.61 by $0.47. The business had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.30 billion. Roku had a return on equity of 13.95% and a net margin of 6.82%.The business's quarterly revenue was up 21.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.07 EPS. Analysts expect that Roku, Inc. will post 2.41 EPS for the current fiscal year.
Analyst Ratings Changes
Several equities research analysts have weighed in on ROKU shares. Wells Fargo & Company increased their target price on Roku from $137.00 to $167.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Evercore downgraded shares of Roku from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. UBS Group set a $160.00 price target on shares of Roku in a research report on Monday, June 15th. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $160.00 price objective (up from $150.00) on shares of Roku in a report on Tuesday, June 16th. Finally, Guggenheim downgraded shares of Roku from a "buy" rating to a "neutral" rating and lifted their price objective for the company from $145.00 to $160.00 in a research report on Friday. Nine research analysts have rated the stock with a Buy rating and eighteen have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $155.75.
Read Our Latest Analysis on Roku
Institutional Trading of Roku
Several large investors have recently added to or reduced their stakes in the business. Jefferies Financial Group Inc. bought a new position in shares of Roku in the fourth quarter worth $1,345,000. Moran Wealth Management LLC acquired a new position in shares of Roku during the first quarter valued at $2,990,000. MH & Associates Securities Management Corp ADV bought a new stake in shares of Roku during the fourth quarter valued at about $2,398,000. California Public Employees Retirement System raised its stake in shares of Roku by 14.8% during the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company's stock valued at $24,674,000 after purchasing an additional 33,593 shares in the last quarter. Finally, Katamaran Capital LLP lifted its holdings in Roku by 90.8% in the first quarter. Katamaran Capital LLP now owns 52,548 shares of the company's stock worth $4,972,000 after purchasing an additional 25,002 shares during the period. 86.30% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting Roku
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates
- Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26%
- Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI
- Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results
- Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis
Roku Company Profile
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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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