Insider Selling: Roku (NASDAQ:ROKU) Director Sells $312,340.00 in Stock

Roku, Inc. (NASDAQ:ROKU) Director Neil Hunt sold 2,000 shares of the company’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 transaction of $312,340.00. Following the completion of the sale, the director directly owned 9,629 shares of the company’s stock, valued at $1,503,760.93. The trade was a 17.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Roku Stock Performance

NASDAQ ROKU opened at $160.37 on Friday. The company has a market cap of $23.80 billion, a PE ratio of 47.46 and a beta of 2.12. The firm’s 50 day moving average price is $155.25 and its 200-day moving average price is $128.63. Roku, Inc. has a 52-week low of $78.53 and a 52-week high of $163.57.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Monday, November 2nd. The company reported $1.20 EPS for the quarter, topping analysts’ consensus estimates of $0.55 by $0.65. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.41 billion. Roku had a net margin of 9.34% and a return on equity of 18.65%. Roku’s revenue for the quarter was up 24.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.16 earnings per share. On average, analysts forecast that Roku, Inc. will post 3.28 earnings per share for the current fiscal year.

Analyst Ratings Changes

ROKU has been the subject of several recent research reports. Wells Fargo & Company lowered Roku from an “overweight” rating to an “equal weight” rating and reduced their price target for the stock from $167.00 to $165.00 in a research report on Friday, August 14th. BMO Capital Markets upgraded Roku from a “market perform” rating to an “outperform” rating in a research note on Tuesday. Needham & Company LLC reaffirmed a “buy” rating on shares of Roku in a research report on Tuesday. Citigroup lifted their target price on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a research note on Friday, July 17th. Finally, JPMorgan Chase & Co. started coverage on Roku in a research note on Monday, August 24th. They issued a “neutral” rating and a $160.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eighteen have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target 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 Investors Weigh In On Roku

Several institutional investors have recently bought and sold shares of ROKU. 55 North Private Wealth LLC raised its holdings in shares of Roku by 4.8% in the third quarter. 55 North Private Wealth LLC now owns 1,592 shares of the company’s stock worth $242,000 after buying an additional 73 shares during the last quarter. CX Institutional lifted its stake in shares of Roku by 44.1% during the third quarter. CX Institutional now owns 281 shares of the company’s stock worth $43,000 after buying an additional 86 shares during the period. Raleigh Capital Management Inc. grew its holdings in shares of Roku by 6.5% during the first quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock valued at $144,000 after buying an additional 93 shares during the last quarter. Apella Capital LLC grew its holdings in shares of Roku by 1.4% during the third quarter. Apella Capital LLC now owns 6,752 shares of the company’s stock valued at $1,031,000 after buying an additional 93 shares during the last quarter. Finally, Quantum Portfolio Management LLC grew its holdings in shares of Roku by 2.6% during the first quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock valued at $391,000 after buying an additional 105 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Company Profile

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.