Roku (NASDAQ:ROKU) Insider Sells 10,719 Shares

Key Points

• Roku insider Gilbert Fuchsberg sold 10,719 shares at an average price of $150, generating approximately $1.61 million. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, and he retained 40,380 shares.
• Roku shares rose 2% to $153.11, near their 52-week high, giving the company a market capitalization of about $22.57 billion. The stock trades at roughly 65 times earnings.
• Analyst sentiment remains mixed: nine analysts rate Roku a Buy and 18 a Hold, producing a consensus rating of Hold and an average price target of $155.75; Morgan Stanley recently raised its target to $170.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) insider Gilbert Fuchsberg sold 10,719 shares of Roku stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $150.00, for a total value of $1,607,850.00. Following the transaction, the insider owned 40,380 shares of the company's stock, valued at approximately $6,057,000. This represents a 20.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Gilbert Fuchsberg also recently made the following trade(s):

• On Tuesday, June 2nd, Gilbert Fuchsberg sold 4,376 shares of Roku stock. The stock was sold at an average price of $127.26, for a total value of $556,889.76.

Roku Stock Up 2.0%

Shares of NASDAQ ROKU traded up $3.04 during midday trading on Friday, reaching $153.11. 2,848,914 shares of the stock were exchanged, compared to its average volume of 2,738,708. The firm has a market cap of $22.57 billion, a price-to-earnings ratio of 65.43 and a beta of 2.01. Roku, Inc. has a twelve month low of $78.53 and a twelve month high of $153.54. The firm has a 50-day simple moving average of $138.39 and a two-hundred day simple moving average of $116.30.

Analysts Set New Price Targets

ROKU has been the topic of several analyst reports. Morgan Stanley raised their price target on shares of Roku from $150.00 to $170.00 and gave the company an "overweight" rating in a research report on Thursday, June 4th. William Blair downgraded shares of Roku from an "outperform" rating to a "market perform" rating in a research report on Monday, June 15th. Seaport Research Partners reissued a "neutral" rating on shares of Roku in a research note on Friday. Weiss Ratings restated a "hold (c-)" rating on shares of Roku in a research report on Friday, May 15th. Finally, Wolfe Research cut Roku from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, June 16th. Nine analysts have rated the stock with a Buy rating and eighteen have given a Hold rating to the stock. According to MarketBeat.com, Roku presently has a consensus rating of "Hold" and an average target price of $155.75.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26%
• Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI
• Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results
• Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in ROKU. AQR Capital Management LLC raised its position in Roku by 10.6% during the fourth quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company's stock worth $310,298,000 after acquiring an additional 274,024 shares during the period. Geode Capital Management LLC lifted its holdings in Roku by 7.3% during the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock valued at $267,389,000 after purchasing an additional 168,214 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Roku by 229.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock valued at $192,868,000 after purchasing an additional 1,419,772 shares during the period. Renaissance Technologies LLC grew its position in shares of Roku by 22.8% in the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company's stock valued at $148,090,000 after purchasing an additional 290,200 shares during the period. Finally, Jacobs Levy Equity Management Inc. increased its stake in shares of Roku by 0.8% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company's stock worth $163,786,000 after purchasing an additional 12,705 shares in 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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