Insider Selling: Roku (NASDAQ:ROKU) CFO Sells 7,000 Shares of Stock

Key Points

• Roku CFO Dan Jedda sold 7,000 shares on June 15 at an average price of $143.87, totaling about $1.01 million. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and his direct ownership fell by 8.05%.
• Roku shares slipped 2.1% to $137.95 in Tuesday trading, though the stock remains near its 52-week high of $148.88. Trading volume was far above average, with more than 15.2 million shares changing hands.
• Analysts remain cautious but constructive overall, with a consensus rating of “Hold” and an average price target of $151.56. Recent earnings were stronger than expected, as Roku beat EPS and revenue estimates and posted 22.4% year-over-year revenue growth.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) 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 transaction, the chief financial officer directly owned 79,963 shares in the company, valued at approximately $11,504,276.81. This represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dan Jedda also recently made the following trade(s):

• On Friday, May 15th, Dan Jedda sold 7,000 shares of Roku stock. The stock was sold at an average price of $122.56, for a total value of $857,920.00.
• On Wednesday, April 15th, Dan Jedda sold 7,000 shares of Roku stock. The shares were sold at an average price of $107.00, for a total value of $749,000.00.

Roku Stock Down 2.1%

NASDAQ:ROKU traded down $2.95 on Tuesday, reaching $137.95. 15,203,348 shares of the company's stock traded hands, compared to its average volume of 3,461,806. The stock has a 50-day simple moving average of $119.60 and a 200-day simple moving average of $106.65. The firm has a market cap of $20.34 billion, a PE ratio of 103.72 and a beta of 2.06. Roku, Inc. has a 12 month low of $77.64 and a 12 month high of $148.88.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating analysts' consensus estimates of $0.34 by $0.23. The business had revenue of $1.25 billion for the quarter, compared to analysts' expectations of $1.20 billion. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business's quarterly revenue was up 22.4% on a year-over-year basis. During the same period last year, the firm earned ($0.19) earnings per share. On average, equities analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. KeyCorp cut Roku from an "overweight" rating to a "sector weight" rating in a report on Monday. UBS Group set a $160.00 price target on Roku in a report on Monday. Fox Advisors set a $160.00 price target on Roku in a report on Tuesday. Guggenheim raised their price target on Roku from $140.00 to $145.00 and gave the company a "buy" rating in a report on Tuesday, June 9th. Finally, JPMorgan Chase & Co. reissued a "neutral" rating and set a $160.00 price target (up from $150.00) on shares of Roku in a report on Tuesday. Thirteen research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $151.56.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox’s acquisition gives Roku shareholders a guaranteed cash-and-stock payout at $160 per share, which is supporting the stock and setting a valuation floor. Reuters article on Fox buying Roku
• Positive Sentiment: Wall Street has been lifting price targets and maintaining bullish ratings, with some analysts saying Roku still has upside around the deal price and could attract interest from other bidders. Analyst ratings coverage
• Neutral Sentiment: The deal reinforces Roku’s importance in connected-TV operating systems, ad tech, and ad-supported streaming, which may help justify the premium Fox is paying. CNBC article on Fox and Roku
• Neutral Sentiment: Multiple shareholder-law-firm investigations into whether the sale is fair could create some headline noise, but these probes typically do not change the announced transaction terms immediately. Global Newswire article on investigation

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in ROKU. Empowered Funds LLC grew its position in shares of Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock valued at $232,000 after purchasing an additional 515 shares in the last quarter. Focus Partners Wealth purchased a new position in shares of Roku during the first quarter valued at about $229,000. EverSource Wealth Advisors LLC grew its position in shares of Roku by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock valued at $123,000 after purchasing an additional 826 shares in the last quarter. First Trust Advisors LP grew its position in shares of Roku by 231.0% during the second quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock valued at $6,221,000 after purchasing an additional 49,399 shares in the last quarter. Finally, Brown Advisory Inc. purchased a new position in shares of Roku during the second quarter valued at about $326,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

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.

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