Roku (NASDAQ:ROKU) Insider Sells $1,467,936.00 in Stock

Key Points

• Roku insider Mustafa Ozgen sold 10,194 shares on June 12 at an average price of $144.00, totaling about $1.47 million. The sale reduced his position by 34.7% and was made under a pre-arranged Rule 10b5-1 plan.
• Roku’s stock has been surging, closing at $143.66 and trading near its 52-week high of $148.88, with unusually heavy volume. The shares are well above both the 50-day and 200-day moving averages.
• Fundamentals and sentiment remain constructive: Roku recently beat quarterly earnings and revenue expectations, and analysts have generally stayed bullish with a consensus “Moderate Buy” rating and a target price around $146.96.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) insider Mustafa Ozgen sold 10,194 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $144.00, for a total transaction of $1,467,936.00. Following the transaction, the insider owned 19,185 shares of the company's stock, valued at $2,762,640. This trade represents a 34.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Roku Stock Performance

ROKU stock traded up $24.02 during trading on Friday, hitting $143.66. 14,999,929 shares of the company's stock traded hands, compared to its average volume of 2,010,160. Roku, Inc. has a 52 week low of $73.91 and a 52 week high of $148.88. The business has a fifty day simple moving average of $118.73 and a 200 day simple moving average of $106.23. The stock has a market capitalization of $21.18 billion, a price-to-earnings ratio of 108.02 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The business had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same quarter last year, the business earned ($0.19) earnings per share. Roku's quarterly revenue was up 22.4% compared to the same quarter last year. Research analysts forecast that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Roku by 2.5% in the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company's stock valued at $1,301,557,000 after acquiring an additional 322,858 shares during the period. AQR Capital Management LLC raised its stake in shares of Roku by 10.6% in the fourth quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company's stock valued at $310,298,000 after acquiring an additional 274,024 shares during the period. Geode Capital Management LLC raised its stake in shares of Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock valued at $267,389,000 after acquiring an additional 168,214 shares during the period. Arrowstreet Capital Limited Partnership raised its stake 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 acquiring an additional 1,419,772 shares during the period. Finally, Holocene Advisors LP raised its stake in shares of Roku by 352.3% in the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock valued at $165,259,000 after acquiring an additional 1,285,585 shares during the period. Hedge funds and other institutional investors own 86.30% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have commented on ROKU. Needham & Company LLC increased their price objective on shares of Roku from $110.00 to $140.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Rosenblatt Securities increased their price objective on shares of Roku from $118.00 to $150.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Stifel Nicolaus set a $160.00 price objective on shares of Roku in a research report on Monday, March 2nd. Citizens Jmp reiterated a "market outperform" rating and set a $170.00 price objective on shares of Roku in a research report on Thursday, May 28th. Finally, Pivotal Research reissued a "buy" rating and issued a $160.00 target price (up from $140.00) on shares of Roku in a research note on Friday, May 1st. Twenty-two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Roku has an average rating of "Moderate Buy" and a consensus target price of $146.96.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is reportedly in sale talks, including a possible media tie-up, which could signal a strategic transaction or premium valuation if a deal materializes. Roku said to be in sale talks, including likely media tie-up, Bloomberg News reports
• Positive Sentiment: Evercore ISI raised its price target to $185 from $160 and kept a bullish rating, reinforcing optimism around Roku’s monetization efforts in its home screen and advertising-tech initiatives. Roku shares jump as fresh bullish analyst notes extend recent price-target hikes
• Positive Sentiment: Additional recent price-target hikes from firms like Morgan Stanley have added to the bullish analyst narrative, suggesting Wall Street sees more upside in Roku’s ad and platform strategy. Roku shares jump as fresh bullish analyst notes extend recent price-target hikes
• Neutral Sentiment: Several media stories highlighted Roku’s expanding free channels and consumer product discounts, but these appear more promotional than material fundamental catalysts. Roku Quietly Added Four New Free Channels For The Month Of June
• Negative Sentiment: CEO Anthony Wood sold 18,000 shares in a pre-arranged trading plan, which may add some caution, although the sale was not necessarily a bearish signal. Roku NASDAQ: ROKU CEO Anthony Wood Sells 18,000 Shares

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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