Key Points
- Roku insider Charles Collier sold 7,067 shares for approximately $1.11 million at an average price of $156.86, reducing his direct ownership by 23.74%. The transaction was conducted under a Rule 10b5-1 plan to cover tax withholding on vested equity awards.
- Roku reported stronger-than-expected quarterly results, with earnings of $1.08 per share versus the $0.61 consensus estimate and revenue of $1.35 billion, up 21.9% year over year.
- Shares were trading near their 52-week high, with a market capitalization of about $23.5 billion; however, analysts maintained a consensus “Hold” rating and an average price target of $156.17.
Roku, Inc. (NASDAQ:ROKU - Get Free Report) CAO Matthew Banks sold 546 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $84,979.44. Following the completion of the sale, the chief accounting officer owned 8,122 shares of the company's stock, valued at approximately $1,264,108.08. This trade represents a 6.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 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 Up 0.4%
ROKU opened at $158.31 on Friday. The stock has a market cap of $23.50 billion, a price-to-earnings ratio of 67.65 and a beta of 2.05. Roku, Inc. has a twelve month low of $78.53 and a twelve month high of $159.89. The company's 50-day moving average price is $148.16 and its two-hundred day moving average price is $124.48.
Roku (NASDAQ:ROKU - Get Free Report) last announced its 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. Roku had a return on equity of 13.73% and a net margin of 6.82%.The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the company earned $0.07 EPS. The company's quarterly revenue was up 21.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Roku, Inc. will post 2.85 earnings per share for the current year.
Roku News Roundup
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Improving earnings outlook: Zacks gave Roku a No. 1, “Strong Buy,” ranking based on bullish EPS revisions. The outlook builds on Roku’s latest quarterly results, which exceeded analyst expectations for both earnings and revenue. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
- Positive Sentiment: Technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving short-term momentum and investor support. Roku Just Overtook the 20-Day Moving Average
- Positive Sentiment: Expansion into premium televisions: Roku’s new Pro Series OLED televisions, starting at $999, could strengthen its brand in higher-end hardware and create additional opportunities to monetize its streaming platform. Roku’s $999 OLED Could Change How TV Makers Make Money
- Neutral Sentiment: Platform and product activity: Pluto TV rolled out a major update on Roku devices, while Roku Streaming Stick Plus returned to its previous Amazon price. These developments may support engagement and sales, but their direct effect on revenue is unclear. Pluto TV Update on Roku Devices
- Negative Sentiment: Insider selling: Directors and executives sold approximately 20,846 shares worth $3.25 million. Most transactions were conducted under pre-arranged Rule 10b5-1 plans, with several sales used to cover tax withholding on vested equity awards, limiting the bearish signal. Nevertheless, the concentration of sales could weigh modestly on sentiment. Roku Insider Selling
Analyst Ratings Changes
A number of research analysts recently commented on ROKU shares. Morgan Stanley increased their target price on Roku from $150.00 to $170.00 and gave the company an "overweight" rating in a research note on Thursday, June 4th. KeyCorp lowered Roku from an "overweight" rating to a "sector weight" rating in a research note on Monday, June 15th. Weiss Ratings upgraded Roku from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, August 11th. Citigroup increased their price target on shares of Roku from $120.00 to $157.00 and gave the company a "neutral" rating in a research report on Friday, July 17th. Finally, Seaport Research Partners cut Roku from a "buy" rating to a "neutral" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $156.17.
View Our Latest Stock Analysis on Roku
Institutional Trading of Roku
Several large investors have recently modified their holdings of ROKU. Corient Private Wealth LP lifted its holdings in Roku by 58.7% in the second quarter. Corient Private Wealth LP now owns 133,101 shares of the company's stock valued at $18,387,000 after acquiring an additional 49,233 shares during the period. Absolute Gestao de Investimentos Ltda. bought a new stake in shares of Roku during the 2nd quarter valued at about $8,427,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Roku during the 2nd quarter valued at about $4,474,000. California State Teachers Retirement System lifted its stake in shares of Roku by 13,741.7% in the 2nd quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company's stock worth $2,888,886,000 after purchasing an additional 20,761,653 shares during the period. Finally, Readystate Asset Management LP bought a new position in shares of Roku in the 2nd quarter worth approximately $22,373,000. Institutional investors own 86.30% of the company's stock.
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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