Roku (NASDAQ:ROKU) Trading Down 1.7% on Insider Selling

Roku, Inc. (NASDAQ:ROKU) dropped 1.7% during mid-day trading on Friday following insider selling activity. The stock traded as low as $155.38 and last traded at $155.59. Approximately 2,073,208 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 3,520,545 shares. The stock had previously closed at $158.31.

Specifically, CAO Matthew Banks sold 546 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, insider Mustafa Ozgen sold 3,410 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $530,732.40. Following the transaction, the insider owned 25,569 shares in the company, valued at approximately $3,979,559.16. This represents a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In other Roku news, insider Charles Collier sold 7,067 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $156.86, for a total value of $1,108,529.62. Following the completion of the sale, the insider owned 22,700 shares in the company, valued at approximately $3,560,722. This trade represents a 23.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ROKU. Seaport Research Partners downgraded Roku from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 11th. UBS Group raised their target price on shares of Roku from $126.00 to $172.00 and gave the stock a “neutral” rating in a research report on Friday, August 7th. Guggenheim cut shares of Roku from a “buy” rating to a “neutral” rating and boosted their price target for the company from $145.00 to $160.00 in a research report on Friday, August 7th. Finally, Citigroup raised their price objective on shares of Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $156.17.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Improving earnings outlook: Zacks ranked Roku No. 1, or “Strong Buy,” citing favorable EPS estimate revisions. That view follows Roku’s latest quarterly beat, when revenue reached $1.35 billion and EPS came in at $1.08, ahead of estimates. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
• Positive Sentiment: Technical momentum: ROKU recently moved above its 20-day moving average, a signal that short-term buying momentum and investor support have improved. Roku Just Overtook the 20-Day Moving Average
• Positive Sentiment: Premium hardware expansion: Roku introduced Pro Series OLED televisions starting at $999. The launch could strengthen Roku’s position in higher-end connected TVs and provide more opportunities to monetize its platform and advertising ecosystem. Roku’s $999 OLED Could Change How TV Makers Make Money
• Neutral Sentiment: Platform and product activity: Pluto TV launched a major update on Roku devices, while the Roku Streaming Stick Plus returned to its former Amazon price. These developments could support engagement and hardware demand, although their near-term financial impact is uncertain. Pluto TV Update on Roku Devices
• Negative Sentiment: Insider selling: Roku executives and directors sold approximately 20,846 shares worth $3.25 million. Most sales were made under pre-arranged Rule 10b5-1 plans, with several covering taxes on vested equity awards, reducing their bearish significance. Still, the volume of selling could modestly pressure sentiment. Roku Insider Selling

Roku Stock Down 1.7%

The stock’s fifty day simple moving average is $148.16 and its two-hundred day simple moving average is $124.48. 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 released 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 net margin of 6.82% and a return on equity of 13.73%. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period last year, the business earned $0.07 earnings per share. The business’s revenue was up 21.9% on a year-over-year basis. On average, equities research analysts anticipate that Roku, Inc. will post 2.85 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Raleigh Capital Management Inc. boosted its stake in Roku by 6.5% in the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock worth $144,000 after purchasing an additional 93 shares in the last quarter. Quantum Portfolio Management LLC increased its stake in Roku by 2.6% during the 1st quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock valued at $391,000 after purchasing an additional 105 shares in the last quarter. HB Wealth Management LLC raised its holdings in Roku by 3.7% in the first quarter. HB Wealth Management LLC now owns 3,447 shares of the company’s stock worth $326,000 after buying an additional 122 shares during the last quarter. Quarry LP raised its holdings in Roku by 21.7% in the fourth quarter. Quarry LP now owns 689 shares of the company’s stock worth $75,000 after buying an additional 123 shares during the last quarter. Finally, Swiss Life Asset Management Ltd lifted its stake in shares of Roku by 2.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 5,969 shares of the company’s stock worth $648,000 after buying an additional 127 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) 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.