Matthew Banks Sells 546 Shares of Roku (NASDAQ:ROKU) Stock

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

Shares of Roku stock opened at $155.59 on Friday. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $159.89. The business has a 50 day moving average price of $148.57 and a 200-day moving average price of $124.70. The company has a market cap of $23.09 billion, a PE ratio of 66.49 and a beta of 2.05.

Roku (NASDAQ:ROKU) last announced its earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the firm earned $0.07 earnings per share. Roku’s quarterly revenue was up 21.9% on a year-over-year basis. As a group, research analysts anticipate that Roku, Inc. will post 2.85 EPS for the current year.

Analyst Ratings Changes

ROKU has been the subject of several recent analyst reports. Robert W. Baird reiterated a “neutral” rating and issued a $160.00 target price on shares of Roku in a research note on Monday, June 15th. Wells Fargo & Company reissued an “equal weight” rating and set a $165.00 price target (down from $167.00) on shares of Roku in a research report on Friday, August 14th. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. started coverage on shares of Roku in a research report on Monday, August 24th. They issued a “neutral” rating and a $160.00 price objective for the company. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $160.00 price objective on shares of Roku in a research note on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $156.17.

Key Roku News

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

Institutional Investors Weigh In On Roku

Several large investors have recently made changes to their positions in the business. Bayban boosted its holdings in shares of Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after buying an additional 260 shares during the last quarter. Safe Harbor Fiduciary LLC purchased a new stake in Roku during the fourth quarter worth about $31,000. Rakuten Securities Inc. increased its holdings in Roku by 55.6% during the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock worth $39,000 after buying an additional 158 shares during the last quarter. Elevation Wealth Partners LLC raised its position in Roku by 208.7% in the second quarter. Elevation Wealth Partners LLC now owns 318 shares of the company’s stock worth $44,000 after acquiring an additional 215 shares during the period. Finally, Osbon Capital Management LLC bought a new stake in Roku in the fourth quarter worth about $45,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.