Insider Selling: Roku (NASDAQ:ROKU) Insider Sells $750,807.36 in Stock

Roku, Inc. (NASDAQ:ROKU) insider Gilbert Fuchsberg sold 4,824 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 transaction of $750,807.36. Following the completion of the sale, the insider directly owned 40,168 shares of the company’s stock, valued at $6,251,747.52. This represents a 10.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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.

Gilbert Fuchsberg also recently made the following trade(s):

• On Thursday, August 6th, Gilbert Fuchsberg sold 10,719 shares of Roku stock. The shares were sold at an average price of $150.00, for a total transaction of $1,607,850.00.

Roku Trading Down 1.7%

ROKU stock opened at $155.59 on Friday. Roku, Inc. has a 1 year low of $78.53 and a 1 year high of $159.89. The company has a fifty day simple moving average of $148.57 and a 200 day simple moving average of $124.70. The firm has a market cap of $23.09 billion, a PE ratio of 66.49 and a beta of 2.05.

Roku (NASDAQ:ROKU) last posted its earnings results on Wednesday, August 5th. The company reported $1.08 EPS 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 firm had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the prior year, the business posted $0.07 earnings per share. The business’s quarterly revenue was up 21.9% on a year-over-year basis. As a group, analysts forecast that Roku, Inc. will post 2.85 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts recently weighed in on ROKU shares. JPMorgan Chase & Co. began coverage on Roku in a research note on Monday, August 24th. They issued a “neutral” rating and a $160.00 price objective on the stock. Evercore cut Roku from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 15th. Citigroup increased their price target on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a report on Friday, July 17th. Guggenheim lowered shares of Roku from a “buy” rating to a “neutral” rating and lifted their price target for the company from $145.00 to $160.00 in a research report on Friday, August 7th. Finally, William Blair cut shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. One equities 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 stock. According to data from MarketBeat, Roku presently has an average rating of “Hold” and an average target price of $156.17.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. California State Teachers Retirement System lifted its stake in shares of 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 during the period. AQR Capital Management LLC grew its holdings in shares of Roku by 275.5% during the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Roku by 229.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after purchasing an additional 1,419,772 shares in the last quarter. Fred Alger Management LLC increased its position in shares of Roku by 7,087.7% during the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock valued at $154,212,000 after purchasing an additional 1,401,664 shares during the period. Finally, Norges Bank acquired a new position in shares of Roku in the fourth quarter valued at $92,808,000. Institutional investors own 86.30% of the company’s stock.

Key Stories Impacting Roku

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

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.