Roku (NASDAQ:ROKU) Shares Up 1.4% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 1.4% on Wednesday . The company traded as high as $158.22 and last traded at $157.70. Approximately 2,488,475 shares changed hands during trading, a decline of 30% from the average session volume of 3,538,043 shares. The stock had previously closed at $155.53.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: New OLED lineup expands Roku’s addressable market. Roku introduced the Pro Series OLED and Pro Series LX OLED TVs, with prices starting at $999. The aggressively priced models could attract consumers seeking premium picture quality and strengthen Roku’s brand in higher-end televisions. The TVs are being sold exclusively through Amazon. Roku Launches All-New Pro Series OLED and Pro Series LX OLED TVs
• Positive Sentiment: Pricing may improve competitive positioning. Multiple reviews characterized Roku’s first OLED TVs as among the least expensive OLED options, potentially supporting unit sales, user additions and advertising opportunities on the Roku platform. Roku Rocks The TV World With Aggressively Priced Debut OLED Models
• Positive Sentiment: Hardware ecosystem remains highly visible. Coverage of Roku-compatible devices, including an Aurzen portable projector with built-in Roku TV functionality, reinforces the company’s distribution reach beyond traditional television sets. Roku TV Built-In Aurzen Portable Projector

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Evercore cut shares of Roku from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 15th. Robert W. Baird restated a “neutral” rating and set a $160.00 price objective on shares of Roku in a research report on Monday, June 15th. Wolfe Research cut Roku from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, June 16th. JPMorgan Chase & Co. assumed coverage on Roku in a report on Monday, August 24th. They issued a “neutral” rating and a $160.00 target price on the stock. Finally, Citizens Jmp lowered Roku from a “market outperform” rating to a “hold” rating in a research note on Tuesday, June 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $156.17.

Roku Stock Performance

The stock has a market capitalization of $23.41 billion, a price-to-earnings ratio of 67.39 and a beta of 2.01. The stock has a fifty day simple moving average of $147.26 and a two-hundred day simple moving average of $123.48.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same period last year, the company posted $0.07 earnings per share. The business’s quarterly revenue was up 21.9% on a year-over-year basis. Research analysts forecast that Roku, Inc. will post 2.85 earnings per share for the current year.

Insider Activity at Roku

In other Roku news, insider Gilbert Fuchsberg sold 10,719 shares of the company’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $150.00, for a total value of $1,607,850.00. Following the completion of the transaction, the insider owned 40,380 shares in the company, valued at $6,057,000. This represents a 20.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $146.25, for a total transaction of $292,500.00. Following the sale, the director owned 9,629 shares of the company’s stock, valued at approximately $1,408,241.25. The trade was a 17.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 145,464 shares of company stock valued at $19,887,430 over the last quarter. 13.45% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roku

Large investors have recently added to or reduced their stakes in the company. Raleigh Capital Management Inc. lifted its position 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 worth $144,000 after acquiring an additional 93 shares in the last quarter. Quantum Portfolio Management LLC boosted its holdings in shares of Roku by 2.6% in the 1st quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock worth $391,000 after purchasing an additional 105 shares in the last quarter. HB Wealth Management LLC grew its position in Roku by 3.7% during the first quarter. HB Wealth Management LLC now owns 3,447 shares of the company’s stock valued at $326,000 after acquiring an additional 122 shares during the last quarter. Quarry LP lifted its stake in Roku by 21.7% in the fourth quarter. Quarry LP now owns 689 shares of the company’s stock worth $75,000 after purchasing 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 4th quarter. Swiss Life Asset Management Ltd now owns 5,969 shares of the company’s stock valued at $648,000 after acquiring an additional 127 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.