Matthew Banks Sells 546 Shares of Roku (NASDAQ:ROKU) Stock

Key Points

• Roku CAO Matthew Banks sold 546 shares for approximately $84,979 at an average price of $155.64, reducing his position by 6.3%. The sale occurred under a pre-arranged Rule 10b5-1 plan to cover tax obligations from vested equity awards.
• Roku shares rose 0.4% to $158.31, near their 52-week high, while the company’s latest results exceeded expectations with $1.08 in EPS and $1.35 billion in revenue, up 21.9% year over year.
• Institutional ownership remains high at 86.3%, although analyst sentiment is mixed: Roku has a consensus “Hold” rating and an average price target of $156.17.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) CAO Matthew Banks sold 546 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $84,979.44. Following the completion of the transaction, the chief accounting officer owned 8,122 shares in the company, valued at approximately $1,264,108.08. This trade represents a 6.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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.

Roku Stock Up 0.4%

Shares of Roku stock traded up $0.61 during trading hours on Thursday, reaching $158.31. 2,026,749 shares of the company's stock were exchanged, compared to its average volume of 2,195,726. Roku, Inc. has a 1 year low of $78.53 and a 1 year high of $159.89. The company has a market capitalization of $23.50 billion, a P/E ratio of 67.65 and a beta of 2.05. The business has a fifty day moving average of $148.16 and a two-hundred day moving average of $124.48.

Roku (NASDAQ:ROKU - Get Free Report) last issued 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 return on equity of 13.73% and a net margin of 6.82%.The company had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same period in the prior year, the business earned $0.07 EPS. The firm's quarterly revenue was up 21.9% on a year-over-year basis. As a group, research analysts predict that Roku, Inc. will post 2.85 EPS for the current year.

Institutional Trading of Roku

Hedge funds have recently made changes to their positions in the company. Corient Private Wealth LP raised its holdings in Roku by 58.7% during the second quarter. Corient Private Wealth LP now owns 133,101 shares of the company's stock worth $18,387,000 after purchasing an additional 49,233 shares in the last quarter. Absolute Gestao de Investimentos Ltda. purchased a new position in shares of Roku in the 2nd quarter valued at about $8,427,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Roku in the second quarter valued at about $4,474,000. California State Teachers Retirement System lifted its stake in shares of Roku by 13,741.7% in the second quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company's stock valued at $2,888,886,000 after purchasing an additional 20,761,653 shares during the period. Finally, Readystate Asset Management LP purchased a new stake in Roku during the second quarter worth about $22,373,000. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Positive earnings revisions: Zacks said Roku has an improving earnings outlook and assigned the company a No. 1, “Strong Buy,” ranking. Upward EPS revisions can support investor confidence in future profitability. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
• Positive Sentiment: Technical momentum improved: Roku recently moved above its 20-day moving average, a signal that short-term buying momentum may be strengthening and that the stock has found support. Roku Just Overtook the 20-Day Moving Average
• Positive Sentiment: OLED expansion draws attention: Roku launched its Pro Series OLED televisions starting at $999. The move could give Roku greater influence over premium TV products and potentially create additional hardware and platform monetization opportunities. Roku’s $999 OLED Could Change How TV Makers Make Money
• Neutral Sentiment: Retail promotion: Best Buy is offering a $200 discount on a 75-inch Roku QLED 4K television. The promotion may increase product visibility and unit sales, although the discount could pressure hardware margins. Best Buy Roku QLED TV Promotion
• Negative Sentiment: Several insiders sold shares: Executives and a director collectively sold roughly 20,800 shares worth about $3.25 million. However, the transactions were made under pre-arranged Rule 10b5-1 plans, and most were specifically intended to cover tax withholding on vested equity awards. This reduces the bearish significance, though the cluster of sales could still weigh modestly on sentiment. Roku Insider Transaction Filing

Analyst Ratings Changes

ROKU has been the topic of several research reports. Evercore lowered Roku from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. Needham & Company LLC restated a "buy" rating on shares of Roku in a report on Friday, August 7th. JPMorgan Chase & Co. assumed coverage on Roku in a research report on Monday, August 24th. They set a "neutral" rating and a $160.00 price objective for the company. Citizens Jmp cut shares of Roku from a "market outperform" rating to a "hold" rating in a research report on Tuesday, June 16th. Finally, UBS Group boosted their target price on Roku from $126.00 to $172.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $156.17.

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.

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