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

Key Points

• Roku CAO Matthew Banks sold 546 shares on June 2 at an average price of $127.26, totaling about $69,484. The sale was made under a pre-arranged 10b5-1 plan to cover tax withholding tied to equity award vesting.
• Roku shares fell 3.9% to $122.20 in Wednesday trading, though the stock remains above both its 50-day and 200-day moving averages. Roku has a market cap of about $18.02 billion and has traded between $72.75 and $133.46 over the past year.
• Analyst sentiment remains bullish after several firms raised price targets, including Wells Fargo to $167 and UBS/Citizens JMP to $170. The stock currently has a consensus rating of Moderate Buy with an average target price of $144.46.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) CAO Matthew Banks sold 546 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $127.26, for a total value of $69,483.96. Following the completion of the transaction, the chief accounting officer owned 7,725 shares in the company, valued at $983,083.50. This trade represents a 6.60% decrease in their position. The sale 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 Trading Down 3.9%

NASDAQ ROKU traded down $4.92 on Wednesday, reaching $122.20. The stock had a trading volume of 2,357,791 shares, compared to its average volume of 3,062,960. The business has a 50 day moving average price of $113.01 and a 200 day moving average price of $104.54. Roku, Inc. has a 1 year low of $72.75 and a 1 year high of $133.46. The company has a market capitalization of $18.02 billion, a price-to-earnings ratio of 91.88 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last issued its 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. Roku had a return on equity of 7.64% and a net margin of 4.06%.The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the previous year, the company posted ($0.19) earnings per share. The business's quarterly revenue was up 22.4% compared to the same quarter last year. On average, analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Roku

Several hedge funds have recently modified their holdings of the business. Parallel Advisors LLC boosted its position in shares of Roku by 27.8% in the first quarter. Parallel Advisors LLC now owns 2,426 shares of the company's stock valued at $230,000 after acquiring an additional 528 shares during the period. Glenmede Trust Co. NA boosted its position in shares of Roku by 225.1% in the first quarter. Glenmede Trust Co. NA now owns 245,468 shares of the company's stock valued at $23,226,000 after acquiring an additional 169,960 shares during the period. Royal Fund Management LLC bought a new stake in shares of Roku in the first quarter valued at approximately $365,000. Bank of America Corp DE boosted its position in shares of Roku by 5.5% in the first quarter. Bank of America Corp DE now owns 1,082,755 shares of the company's stock valued at $102,450,000 after acquiring an additional 56,893 shares during the period. Finally, Janus Henderson Group PLC boosted its position in shares of Roku by 1,320.4% in the first quarter. Janus Henderson Group PLC now owns 834,619 shares of the company's stock valued at $78,967,000 after acquiring an additional 775,861 shares during the period. 86.30% of the stock is owned by institutional investors.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku was highlighted in a Seeking Alpha piece that argued Wall Street may still be underestimating the company, noting that Roku has reached 100 million households worldwide and is expanding its live sports offering with FOX One ahead of major World Cup coverage. 100 Million Households Later And Wall Street Still Underestimates Roku
• Neutral Sentiment: Recent articles also pointed to broadly bullish analyst sentiment on Roku, though the pieces were more reflective than event-driven and did not cite a new rating change or catalyst. Is It Worth Investing in Roku (ROKU) Based on Wall Street's Bullish Views?
• Neutral Sentiment: Zacks also published a similar analysis questioning whether Wall Street’s bullish views should drive investment decisions, but the article itself did not announce any new company-specific development. Is It Worth Investing in Roku (ROKU) Based on Wall Street's Bullish Views?
• Negative Sentiment: Multiple Roku insiders sold shares in pre-arranged 10b5-1 transactions, including SVP Christopher T. Handman, CAO Matthew C. Banks, Director Neil D. Hunt, insider Gilbert Fuchsberg, and insider Charles Collier. While the sales were tied to equity vesting and tax withholding, the breadth of selling can still weigh on investor sentiment. SEC Filing: Christopher T. Handman

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Wells Fargo & Company boosted their price target on Roku from $137.00 to $167.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Rosenblatt Securities boosted their price target on Roku from $118.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Citizens Jmp reaffirmed a "market outperform" rating and issued a $170.00 price target on shares of Roku in a research report on Thursday, May 28th. UBS Group set a $170.00 price target on Roku in a research report on Thursday, May 28th. Finally, Guggenheim boosted their price target on Roku from $130.00 to $140.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Twenty-two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and an average target price of $144.46.

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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