Roku (NASDAQ:ROKU) Trading Up 1.4% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU)’s stock price was up 1.4% during trading on Thursday . The stock traded as high as $142.67 and last traded at $142.43. 4,002,234 shares traded hands during trading, an increase of 3% from the average session volume of 3,882,997 shares. The stock had previously closed at $140.51.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is benefiting from a reported $22 billion all-stock takeover agreement with Fox, which could imply a substantial strategic valuation for the company and highlights the importance of Roku’s streaming platform and advertising assets.
• Positive Sentiment: Roku announced a new show focused on the greatest American female athletes, a sign it continues to expand content offerings and attract more viewing engagement. Article Title
• Neutral Sentiment: Roku remains one of the more closely watched stocks on market news and screening sites, keeping attention high as investors assess the Fox deal and the company’s next move. Article Title
• Neutral Sentiment: Analysts currently have a consensus “Hold” rating on Roku, suggesting Wall Street sees meaningful upside potential but is still cautious on valuation and execution. Article Title
• Neutral Sentiment: Roku settled a Florida child-data case and pledged a privacy overhaul, which removes a legal overhang but also signals additional operational and compliance work ahead. Article Title
• Negative Sentiment: Recent insider selling by a Roku CAO and director may weigh on sentiment, even though the transactions were disclosed as part of pre-arranged 10b5-1 plans. Article Title
• Negative Sentiment: A shareholder law firm has launched an investigation into whether Roku is getting a fair price in the Fox transaction, which could add uncertainty and legal noise around the deal. Article Title

Analysts Set New Price Targets

ROKU has been the subject of several analyst reports. Oppenheimer downgraded Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. Weiss Ratings restated a “hold (c-)” rating on shares of Roku in a research note on Friday, May 15th. Wolfe Research downgraded shares of Roku from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 16th. Robert W. Baird reissued a “neutral” rating and set a $160.00 price target on shares of Roku in a research report on Monday, June 15th. Finally, Fox Advisors set a $160.00 price objective on shares of Roku in a research report on Tuesday, June 16th. Eleven analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $153.71.

Roku Stock Performance

The stock has a market capitalization of $21.00 billion, a PE ratio of 107.09 and a beta of 2.01. The firm has a 50-day moving average price of $128.23 and a 200-day moving average price of $110.31.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the previous year, the firm earned ($0.19) EPS. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. Sell-side analysts expect that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Insider Activity at Roku

In other Roku news, CFO Dan Jedda sold 7,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $143.87, for a total value of $1,007,090.00. Following the completion of the sale, the chief financial officer directly owned 79,963 shares of the company’s stock, valued at $11,504,276.81. This trade represents a 8.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $130.00, for a total value of $3,250,000.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 713,020 shares of company stock worth $81,860,846 over the last 90 days. Corporate insiders own 13.45% of the company’s stock.

Institutional Investors Weigh In On Roku

Institutional investors have recently added to or reduced their stakes in the business. Blue Trust Inc. increased its holdings in Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC bought a new position in shares of Roku in the fourth quarter worth $26,000. Bayban increased its holdings in shares of Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after purchasing an additional 260 shares during the period. WPG Advisers LLC purchased a new stake in shares of Roku in the fourth quarter worth $31,000. Finally, Safe Harbor Fiduciary LLC bought a new stake in Roku during the fourth quarter valued at $31,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.