Roku (NASDAQ:ROKU) Insider Charles Collier Sells 20,538 Shares of Company Stock

Key Points

• Roku insider Charles Collier sold 20,538 shares for approximately $3.11 million at an average price of $151.63, reducing his direct holdings by 47.5% to 22,700 shares. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan.
• Roku shares recently traded at $152.73, with a market capitalization of about $22.67 billion. The company’s latest quarterly results exceeded expectations, reporting $1.08 in EPS and $1.35 billion in revenue, up 21.9% year over year.
• Analyst sentiment is largely cautious: Roku has an average “Hold” rating and a consensus price target of $156.17, while institutional investors own approximately 86.3% of the stock.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) insider Charles Collier sold 20,538 shares of the stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $151.63, for a total value of $3,114,176.94. Following the completion of the transaction, the insider directly owned 22,700 shares in the company, valued at approximately $3,442,001. This represents a 47.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Charles Collier also recently made the following trade(s):

• On Friday, September 4th, Charles Collier sold 20,538 shares of Roku stock. The shares were sold at an average price of $156.99, for a total transaction of $3,224,260.62.
• On Wednesday, September 2nd, Charles Collier sold 7,067 shares of Roku stock. The shares were sold at an average price of $156.86, for a total transaction of $1,108,529.62.
• On Tuesday, August 4th, Charles Collier sold 20,538 shares of Roku stock. The stock was sold at an average price of $145.93, for a total value of $2,997,110.34.

Roku Price Performance

Shares of NASDAQ:ROKU traded up $0.67 during mid-day trading on Wednesday, reaching $152.73. 1,210,083 shares of the company traded hands, compared to its average volume of 3,347,519. The company's 50 day moving average price is $153.82 and its 200-day moving average price is $134.15. The firm has a market cap of $22.67 billion, a PE ratio of 65.27 and a beta of 2.05. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $159.89.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same period in the prior year, the firm posted $0.07 EPS. The firm's quarterly revenue was up 21.9% compared to the same quarter last year. On average, research analysts predict that Roku, Inc. will post 2.92 earnings per share for the current fiscal year.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: More free content could strengthen Roku’s platform. Roku added three free live channels, potentially increasing engagement on The Roku Channel and creating additional advertising inventory. Roku just added 3 free live channels to its lineup
• Positive Sentiment: New programming supports Roku’s content ambitions. Lucy Hale will headline Scarlett Holmes, a limited series being developed for Roku, adding original content that could help attract viewers and advertisers. Lucy Hale to headline Scarlett Holmes
• Positive Sentiment: Some analysts see continued growth in streaming and advertising. Zacks included ROKU among growth stocks to consider for the fourth quarter, while a separate Zacks report highlighted the stock’s recent investor interest. Zacks growth stock recommendation
• Positive Sentiment: A potential Fox-related transaction is viewed as a growth catalyst. Seeking Alpha argues that Fox’s interest or acquisition plans could expand Roku’s reach in the living-room media market, although investors should distinguish this thesis from a completed transaction. Fox acquisition boosts Roku growth prospects
• Neutral Sentiment: Product promotion may boost demand but could pressure margins. Roku’s new 65-inch 4K OLED television is discounted to $799.99 for October Prime Day, improving consumer visibility while offering limited evidence of broader profitability. Roku OLED TV Prime Day deal
• Negative Sentiment: Insider selling is a modest sentiment headwind. CAO Matthew Banks sold 554 shares for approximately $84,000, while director Neil Hunt sold 2,000 shares for about $302,000. Both transactions were made under pre-arranged Rule 10b5-1 plans, reducing their significance as a signal of deteriorating business conditions. Roku insider selling

Analyst Ratings Changes

A number of brokerages have issued reports on ROKU. Guggenheim lowered Roku from a "buy" rating to a "neutral" rating and increased their price target for the stock from $145.00 to $160.00 in a research note on Friday, August 7th. Wolfe Research downgraded Roku from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, June 16th. Wells Fargo & Company reaffirmed an "equal weight" rating and issued a $165.00 price objective (down from $167.00) on shares of Roku in a research note on Friday, August 14th. William Blair cut Roku from an "outperform" rating to a "market perform" rating in a research report on Monday, June 15th. Finally, Evercore downgraded Roku from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the company's stock. According to data from MarketBeat, Roku presently has an average rating of "Hold" and a consensus price target of $156.17.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Elevation Wealth Partners LLC grew its holdings in Roku by 52.5% during the 3rd quarter. Elevation Wealth Partners LLC now owns 485 shares of the company's stock valued at $74,000 after buying an additional 167 shares in the last quarter. CX Institutional increased its stake in Roku by 44.1% in the 3rd quarter. CX Institutional now owns 281 shares of the company's stock worth $43,000 after acquiring an additional 86 shares during the last quarter. QRG Capital Management Inc. raised its holdings in shares of Roku by 13.9% during the 2nd quarter. QRG Capital Management Inc. now owns 6,872 shares of the company's stock worth $949,000 after acquiring an additional 841 shares in the last quarter. HBK Investments L P purchased a new stake in shares of Roku during the 2nd quarter worth approximately $163,604,000. Finally, Sequoia Financial Advisors LLC boosted its position in shares of Roku by 22.4% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,018 shares of the company's stock valued at $831,000 after acquiring an additional 1,102 shares during the last quarter. 86.30% of the stock is owned by institutional investors.

Roku Company Profile

Roku, Inc develops and operates a television streaming platform that connects consumers with digital entertainment. Its platform enables users to access streaming services, live television, movies, music and other content through Roku devices and Roku-powered televisions.

The company offers Roku streaming players, Roku-branded televisions and the Roku operating system, which it licenses to television manufacturers. Roku also operates The Roku Channel, an ad-supported streaming service offering movies, television programs, news, live channels and other content.

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