Roku (NASDAQ:ROKU) Trading 1% Higher – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price was up 1% during trading on Tuesday . The stock traded as high as $147.38 and last traded at $147.33. 3,992,400 shares changed hands during mid-day trading, an increase of 7% from the average daily volume of 3,717,152 shares. The stock had previously closed at $145.84.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, above the $1.30 billion analyst consensus, driven by strength in advertising and subscriptions. Diluted EPS was $1.08, beating estimates of $0.60 and rising sharply from $0.07 a year earlier. Reuters earnings report
• Positive Sentiment: Platform revenue growth, including advertising-related activity, helped Roku deliver a “double beat,” reinforcing the view that its advertising and subscription ecosystem is the company’s primary growth engine. Deadline Roku earnings report
• Positive Sentiment: The pending agreement for Fox Corporation to acquire Roku adds strategic value and may support investor interest, particularly as Roku approaches a three-year trading high. Roku second-quarter results release
• Neutral Sentiment: Because the Fox transaction is pending, Roku will not hold an earnings call or provide financial guidance. The lack of an updated outlook limits visibility into future operating performance and could increase volatility. Benzinga earnings highlights
• Negative Sentiment: Several insiders, including director Neil Hunt and executives Charles Collier and Matthew Banks, sold shares under pre-arranged Rule 10b5-1 plans. The transactions are not necessarily a signal of deteriorating fundamentals, but they may temper sentiment after the stock’s strong run. Roku insider trading report

Analysts Set New Price Targets

Several research firms recently weighed in on ROKU. Jefferies Financial Group downgraded Roku from a “buy” rating to a “hold” rating and set a $160.00 price objective on the stock. in a report on Monday, June 15th. Wells Fargo & Company upped their target price on Roku from $137.00 to $167.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. Piper Sandler downgraded Roku from an “overweight” rating to a “neutral” rating and increased their target price for the company from $148.00 to $160.00 in a research report on Tuesday, June 16th. Wedbush downgraded Roku from an “outperform” rating to a “neutral” rating and set a $155.00 target price for the company. in a research report on Tuesday, June 16th. Finally, Morgan Stanley lifted their price target on Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Ten equities research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $155.12.

Roku Stock Up 2.1%

The company has a market cap of $22.12 billion, a P/E ratio of 112.84 and a beta of 2.01. The firm’s 50 day moving average is $137.55 and its two-hundred day moving average is $115.71.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.48. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. As a group, research analysts forecast that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $146.25, for a total value of $292,500.00. Following the completion of the sale, the director directly owned 9,629 shares in the company, valued at approximately $1,408,241.25. The trade was a 17.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,538 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $145.93, for a total value of $2,997,110.34. Following the completion of the transaction, the insider directly owned 15,200 shares in the company, valued at approximately $2,218,136. This trade represents a 57.47% decrease in their ownership of the stock. 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. Insiders have sold a total of 226,733 shares of company stock valued at $29,862,532 over the last ninety days. Insiders own 13.45% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently modified their holdings of ROKU. Blue Trust Inc. grew its position in shares of Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares in the last quarter. Bayban boosted its position in Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after buying an additional 260 shares during the period. WPG Advisers LLC bought a new position in Roku during the 4th quarter valued at approximately $31,000. Safe Harbor Fiduciary LLC bought a new position in shares of Roku during the fourth quarter valued at approximately $31,000. Finally, Rakuten Securities Inc. raised its stake in Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock worth $39,000 after buying an additional 158 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.