Key Points
- Roku director Neil Hunt sold 2,000 shares for $312,340, reducing his direct stake by 17.2% to 9,629 shares. The sale was made under a pre-arranged Rule 10b5-1 plan.
- Roku’s quarterly results beat expectations: revenue reached $1.50 billion, up 24.1% year over year, while EPS was $1.20 versus analysts’ $0.55 estimate.
- Analysts’ consensus rating was Hold, with a consensus price target of $156.17; Roku shares opened at $160.36 on Wednesday.
Roku, Inc. (NASDAQ:ROKU - Get Free Report) Director Neil Hunt sold 2,000 shares of the business's stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $156.17, for a total value of $312,340.00. Following the transaction, the director directly owned 9,629 shares in the company, valued at $1,503,760.93. This trade represents a 17.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Roku Stock Up 3.1%
NASDAQ ROKU opened at $160.36 on Wednesday. Roku, Inc. has a fifty-two week low of $78.53 and a fifty-two week high of $161.26. The business has a 50 day moving average price of $155.15 and a two-hundred day moving average price of $128.06. The stock has a market cap of $23.80 billion, a PE ratio of 47.44 and a beta of 2.12.
Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The company reported $1.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.55 by $0.65. Roku had a net margin of 9.34% and a return on equity of 19.19%. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.41 billion. During the same quarter last year, the firm posted $0.16 earnings per share. The business's quarterly revenue was up 24.1% on a year-over-year basis. Sell-side analysts anticipate that Roku, Inc. will post 2.97 EPS for the current fiscal year.
Analysts Set New Price Targets
Several research firms recently issued reports on ROKU. BMO Capital Markets raised shares of Roku from a "market perform" rating to an "outperform" rating in a research note on Tuesday. Citigroup upped their price objective 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. JPMorgan Chase & Co. began coverage on Roku in a research note on Monday, August 24th. They set a "neutral" rating and a $160.00 target price for the company. UBS Group lifted their target price on Roku from $126.00 to $172.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, Wedbush reiterated a "neutral" rating and issued a $155.00 price target on shares of Roku in a research note on Thursday, September 24th. 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. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $156.17.
Check Out Our Latest Report on ROKU
Institutional Trading of Roku
A number of hedge funds have recently made changes to their positions in ROKU. Arrowstreet Capital Limited Partnership raised its holdings in Roku by 229.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock valued at $192,868,000 after acquiring an additional 1,419,772 shares in the last quarter. Renaissance Technologies LLC grew its holdings in Roku by 22.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company's stock worth $148,090,000 after acquiring an additional 290,200 shares in the last quarter. HBK Investments L P acquired a new position in Roku during the 2nd quarter worth $163,604,000. Bank of America Corp DE grew its holdings in Roku by 5.5% during the 1st quarter. Bank of America Corp DE now owns 1,082,755 shares of the company's stock worth $102,450,000 after acquiring an additional 56,893 shares in the last quarter. Finally, Janus Henderson Group PLC increased its position in shares of Roku by 1,320.4% in the 1st quarter. Janus Henderson Group PLC now owns 834,619 shares of the company's stock worth $78,967,000 after purchasing an additional 775,861 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.
Key Stories Impacting Roku
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Roku reported third-quarter revenue of $1.50 billion, up 24.1% year over year and above analyst expectations of $1.41 billion. EPS of $1.20 also exceeded the $0.55 consensus, while net income reached $183 million. Advertising revenue rose 23%, helping drive the profit improvement. Roku earnings report
- Positive Sentiment: Fox reportedly received all foreign regulatory approvals for its proposed acquisition of Roku, helping narrow the deal spread. The transaction still faces remaining steps before closing. Fox-Roku regulatory update
- Neutral Sentiment: Executives’ share sales may attract attention, but both the director and chief accounting officer sold shares under pre-arranged Rule 10b5-1 plans, which limits the signal these transactions provide about their view of the stock. Director sale filing Chief accounting officer sale filing
- Negative Sentiment: Rosenblatt Securities downgraded Roku from “buy” to “neutral,” setting a $160 price target—close to the recent trading level and suggesting limited near-term upside in the firm’s view. Analyst downgrade
- Negative Sentiment: Roku said it expects heavier costs in the fourth quarter, which could temper the impact of the strong results. Earnings cost commentary
Roku Company Profile
(
Get Free Report)
Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.
Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.
Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.
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