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

Roku, Inc. (NASDAQ:ROKU) CAO Matthew Banks sold 546 shares of Roku stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $84,979.44. Following the completion of the sale, the chief accounting officer directly owned 8,122 shares in the company, valued at approximately $1,264,108.08. This represents a 6.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through 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 Performance

NASDAQ ROKU opened at $158.31 on Friday. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $159.89. The stock’s 50 day moving average price is $148.16 and its two-hundred day moving average price is $124.48. The stock has a market capitalization of $23.50 billion, a price-to-earnings ratio of 67.65 and a beta of 2.05.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same period last year, the business earned $0.07 EPS. The business’s quarterly revenue was up 21.9% on a year-over-year basis. On average, equities research analysts forecast that Roku, Inc. will post 2.85 EPS for the current year.

Key Stories Impacting Roku

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

Analysts Set New Price Targets

Several brokerages recently commented on ROKU. Weiss Ratings raised shares of Roku from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Wedbush lowered Roku from an “outperform” rating to a “neutral” rating and set a $155.00 price objective on the stock. in a report on Tuesday, June 16th. Wolfe Research downgraded Roku from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 16th. Needham & Company LLC reissued a “buy” rating on shares of Roku in a research report on Friday, August 7th. Finally, UBS Group upped their price target on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have assigned a Hold rating to the stock. According to MarketBeat.com, Roku presently has an average rating of “Hold” and a consensus target price of $156.17.

Institutional Investors Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. California State Teachers Retirement System boosted its stake in Roku by 13,741.7% in the second quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company’s stock valued at $2,888,886,000 after buying an additional 20,761,653 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Roku by 10.6% during the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock valued at $310,298,000 after purchasing an additional 274,024 shares in the last quarter. Geode Capital Management LLC grew its holdings in Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock worth $267,389,000 after purchasing an additional 168,214 shares during the period. Arrowstreet Capital Limited Partnership grew its stake 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 during the period. Finally, Renaissance Technologies LLC increased its position in shares of Roku by 22.8% during the first 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. 86.30% of the stock is currently owned by 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.