Insider Selling: Roku (NASDAQ:ROKU) CAO Sells $80,730.00 in Stock

Roku, Inc. (NASDAQ:ROKU) CAO Matthew Banks sold 552 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $146.25, for a total transaction of $80,730.00. Following the completion of the transaction, the chief accounting officer owned 6,619 shares of the company’s stock, valued at approximately $968,028.75. This trade represents a 7.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Roku Price Performance

NASDAQ:ROKU opened at $153.11 on Friday. Roku, Inc. has a one year low of $78.53 and a one year high of $153.54. The company has a market cap of $22.57 billion, a PE ratio of 65.43 and a beta of 2.01. The firm’s 50 day simple moving average is $138.39 and its 200 day simple moving average is $116.30.

Roku (NASDAQ:ROKU) last announced its quarterly 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. The firm had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.95%. The company’s revenue was up 21.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.07 EPS. Equities research analysts expect that Roku, Inc. will post 2.41 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on ROKU shares. Susquehanna lowered Roku from a “positive” rating to a “neutral” rating and set a $160.00 target price for the company. in a research report on Tuesday, June 16th. Citizens Jmp lowered Roku from a “market outperform” rating to a “hold” rating in a research report on Tuesday, June 16th. Guggenheim cut Roku from a “buy” rating to a “neutral” rating and increased their price target for the company from $145.00 to $160.00 in a research note on Friday. Pivotal Research restated a “buy” rating and set a $160.00 price objective (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Finally, Robert W. Baird reaffirmed a “neutral” rating and issued a $160.00 price objective on shares of Roku in a research note on Monday, June 15th. Nine investment analysts have rated the stock with a Buy rating and eighteen have given a Hold rating to the stock. According to MarketBeat, Roku presently has an average rating of “Hold” and a consensus target price of $155.75.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently bought and sold shares of the company. Jefferies Financial Group Inc. purchased a new stake in shares of Roku in the fourth quarter worth approximately $1,345,000. Moran Wealth Management LLC purchased a new position in shares of Roku during the first quarter valued at approximately $2,990,000. MH & Associates Securities Management Corp ADV purchased a new position in shares of Roku during the fourth quarter valued at approximately $2,398,000. California Public Employees Retirement System grew its holdings in Roku by 14.8% during the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company’s stock worth $24,674,000 after buying an additional 33,593 shares in the last quarter. Finally, Katamaran Capital LLP grew its holdings in Roku by 90.8% during the first quarter. Katamaran Capital LLP now owns 52,548 shares of the company’s stock worth $4,972,000 after buying an additional 25,002 shares in the last quarter. Institutional investors own 86.30% of the company’s stock.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26%
• Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI
• Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results
• Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis

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.