Roku (NASDAQ:ROKU) CAO Sells $86,906.88 in Stock

Roku, Inc. (NASDAQ:ROKU) CAO Matthew Banks sold 552 shares of Roku stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $157.44, for a total transaction of $86,906.88. Following the sale, the chief accounting officer directly owned 7,016 shares of the company’s stock, valued at $1,104,599.04. This represents a 7.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Roku Stock Performance

Shares of NASDAQ:ROKU opened at $160.37 on Friday. Roku, Inc. has a 52-week low of $78.53 and a 52-week high of $163.57. The firm has a fifty day moving average of $155.25 and a 200 day moving average of $128.63. The firm has a market capitalization of $23.80 billion, a PE ratio of 47.46 and a beta of 2.12.

Roku (NASDAQ:ROKU) last released its earnings results on Monday, November 2nd. The company reported $1.20 EPS for the quarter, beating analysts’ consensus estimates of $0.55 by $0.65. Roku had a return on equity of 18.65% and a net margin of 9.34%. The business had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.41 billion. During the same quarter in the prior year, the firm earned $0.16 earnings per share. The firm’s revenue was up 24.1% on a year-over-year basis. On average, sell-side analysts forecast that Roku, Inc. will post 3.28 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently weighed in on ROKU shares. Seaport Research Partners downgraded Roku from a “buy” rating to a “neutral” rating in a research report on Friday, August 7th. BMO Capital Markets raised Roku from a “market perform” rating to an “outperform” rating in a research note on Tuesday. UBS Group increased their price target on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Wedbush reissued a “neutral” rating and set a $155.00 price target on shares of Roku in a research note on Thursday, September 24th. Finally, Wells Fargo & Company downgraded shares of Roku from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $167.00 to $165.00 in a research note on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eighteen have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus 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: Roku’s latest quarter came in well ahead of expectations: revenue rose 24.1% year over year to $1.50 billion, while EPS was $1.20 versus the $0.55 consensus. The earnings beat has helped support the stock’s recent rally. Roku shares rise after earnings beat
• Positive Sentiment: Recent articles highlight Roku’s fresh 52-week high and strong momentum. Zacks’ momentum-focused coverage and technical commentary about shares moving above a key moving average may attract trend-following investors. Roku momentum coverage
• Neutral Sentiment: Director Neil Hunt sold 2,000 shares through a pre-arranged Rule 10b5-1 plan. The planned sale is less informative about his near-term outlook than an unplanned transaction. SEC filing for director share sale
• Negative Sentiment: Analyst sentiment suggests limited upside after the rally: the reported consensus rating is “Hold,” and the average price target of $156.17 is below the recent trading level. This valuation gap could encourage profit-taking. Roku analyst price target
• Negative Sentiment: Roku’s decision to retire a popular aquatic-life screensaver drew complaints from some users. The customer reaction appears modest compared with earnings and valuation factors, but could weigh slightly on sentiment. Coverage of screensaver change

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Maryland State Retirement & Pension System raised its holdings in Roku by 12.8% in the 3rd quarter. Maryland State Retirement & Pension System now owns 7,952 shares of the company’s stock worth $1,211,000 after purchasing an additional 901 shares in the last quarter. Jacobi Capital Management LLC purchased a new stake in shares of Roku in the 3rd quarter worth about $89,000. Machina Capital S.A.S. lifted its position in shares of Roku by 1,142.5% in the 3rd quarter. Machina Capital S.A.S. now owns 33,174 shares of the company’s stock worth $5,052,000 after purchasing an additional 30,504 shares during the period. Lido Advisors LLC lifted its position in shares of Roku by 3.3% in the 3rd quarter. Lido Advisors LLC now owns 53,566 shares of the company’s stock worth $8,157,000 after purchasing an additional 1,697 shares during the period. Finally, New York Life Investment Management LLC boosted its stake in shares of Roku by 289.7% during the 3rd quarter. New York Life Investment Management LLC now owns 62,409 shares of the company’s stock valued at $9,504,000 after purchasing an additional 46,395 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

About Roku

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.