Roku (NASDAQ:ROKU) Insider Sells $1,204,113.36 in Stock

Key Points

• Insider sale: Roku insider Gilbert Fuchsberg sold 9,593 shares on May 1 at an average price of $125.52 for a total of $1,204,113.36 under a pre-arranged Rule 10b5-1 plan, reducing his stake by 15.87% to 50,863 shares valued at about $6.38M.
• Strong Q1 results: Roku beat expectations with Q1 EPS of $0.57 (vs. $0.34 expected) and revenue of $1.25B (vs. $1.20B), with revenue up 22.4% YoY and record free cash flow supporting its ad/subscription monetization thesis.
• Mixed outlook and risks: While analysts are generally bullish (consensus price target around $142 and more buy than hold ratings), Roku faces legal/reputational risk from class-action lawsuits alleging software updates "bricked" TCL TVs which could weigh on the stock.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) insider Gilbert Fuchsberg sold 9,593 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the sale, the insider directly owned 50,863 shares of the company's stock, valued at $6,384,323.76. This represents a 15.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Tuesday, March 3rd, Gilbert Fuchsberg sold 3,250 shares of Roku stock. The stock was sold at an average price of $95.57, for a total transaction of $310,602.50.

Roku Stock Performance

Roku stock traded down $1.58 during mid-day trading on Tuesday, reaching $124.44. The company's stock had a trading volume of 2,822,132 shares, compared to its average volume of 3,312,268. The company has a market capitalization of $18.35 billion, a price-to-earnings ratio of 93.57 and a beta of 2.04. Roku, Inc. has a 12 month low of $58.77 and a 12 month high of $127.90. The business's 50 day simple moving average is $101.11 and its 200 day simple moving average is $101.06.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.23. The business had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.68%. The firm's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.19) earnings per share. As a group, sell-side analysts expect that Roku, Inc. will post 2.24 EPS for the current year.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q1 earnings beat — Roku reported stronger-than-expected Q1 revenue and EPS with platform revenue surging and record free cash flow, supporting the company's ad/subscription monetization thesis. ROKU Shares Rise 6% on Q1 Earnings Beat, Revenues and EPS Up Y/Y
• Positive Sentiment: Content and distribution additions — Roku added 15 new free channels to its platform, which can increase engagement, ad inventory and potential ad revenue. Roku Just Added 15 New Channels — And They’re All Free
• Positive Sentiment: New low-cost subscription (Howdy) — Roku’s Howdy $3/month service is getting coverage as a viable low-price add-on that could drive ARPU and reduce churn if adoption scales. Here’s Why Howdy, Roku’s Low-Cost Streaming Service, Is Worth Your $3/Month
• Positive Sentiment: Structural cost/market tailwind — analysis suggests Roku’s low-memory hardware footprint may benefit it amid rising memory prices, potentially protecting margins vs. peers. How ROKU Stock Could Be One of the Biggest Winners of Sky-High Memory Prices
• Neutral Sentiment: Analyst update — Citigroup raised its price target to $120 but kept a "neutral" rating, signaling mixed analyst sentiment and implying limited near-term upside from that house. Benzinga coverage of analyst update
• Negative Sentiment: Class-action lawsuits alleging updates “bricked” TCL TVs running Roku software — multiple outlets report a new suit accusing Roku (with TCL) of shipping updates that rendered devices unusable; litigation and reputational risk could pressure the stock and lead to legal costs or remedial expenses. TCL and Roku sued for allegedly bricking TVs with updates Roku and TCL are being sued for allegedly bricking smart TVs ROKU and TCL accused of bricking TVs in new class action lawsuit

Analysts Set New Price Targets

A number of research analysts recently weighed in on ROKU shares. Moffett Nathanson reaffirmed a "neutral" rating and issued a $100.00 target price on shares of Roku in a research report on Friday, February 13th. Guggenheim raised their target price on shares of Roku from $130.00 to $140.00 and gave the company a "buy" rating in a research report on Friday. Oppenheimer raised their target price on shares of Roku from $105.00 to $120.00 and gave the company an "outperform" rating in a research report on Friday, February 13th. Evercore reaffirmed an "outperform" rating and issued a $150.00 target price on shares of Roku in a research report on Friday, February 13th. Finally, Bank of America raised their target price on shares of Roku from $115.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, January 12th. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $142.17.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Blue Trust Inc. grew its position in shares of Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company's stock valued at $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC bought a new position in shares of Roku in the 4th quarter valued at about $26,000. Bayban lifted its stake in shares of Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after buying an additional 260 shares during the last quarter. Westfuller Advisors LLC acquired a new stake in shares of Roku during the 3rd quarter worth about $30,000. Finally, WPG Advisers LLC acquired a new stake in shares of Roku during the 4th quarter worth about $31,000. 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.

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.