Stock Traders Purchase High Volume of Roku Call Options (NASDAQ:ROKU)

Roku, Inc. (NASDAQ:ROKU) saw some unusual options trading on Friday. Investors acquired 15,532 call options on the stock. This represents an increase of 46% compared to the average volume of 10,636 call options.

Roku Price Performance

Roku stock traded up $2.77 during trading hours on Friday, hitting $156.85. The stock had a trading volume of 871,373 shares, compared to its average volume of 3,653,555. Roku has a 1-year low of $78.53 and a 1-year high of $157.86. The stock has a market capitalization of $23.12 billion, a price-to-earnings ratio of 67.03 and a beta of 2.01. The stock’s fifty day moving average is $140.49 and its two-hundred day moving average is $117.71.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%.The business’s revenue was up 21.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.07 EPS. As a group, sell-side analysts anticipate that Roku will post 2.82 EPS for the current year.

Insider Buying and Selling

In other news, insider Gilbert Fuchsberg sold 10,719 shares of the firm’s stock in a transaction 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 completion of the sale, the insider owned 40,380 shares in the company, valued at approximately $6,057,000. This trade represents a 20.98% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $143.87, for a total transaction of $1,007,090.00. Following the transaction, the chief financial officer owned 79,963 shares in the company, valued at approximately $11,504,276.81. This trade represents a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 155,452 shares of company stock worth $20,953,212. 13.45% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Raleigh Capital Management Inc. grew its holdings in Roku by 6.5% during the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock valued at $144,000 after buying an additional 93 shares during the last quarter. Apollon Wealth Management LLC raised its holdings in shares of Roku by 1.5% in the fourth quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company’s stock worth $700,000 after acquiring an additional 96 shares during the last quarter. Quantum Portfolio Management LLC lifted its position in shares of Roku by 2.6% in the first quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock valued at $391,000 after acquiring an additional 105 shares in the last quarter. HB Wealth Management LLC lifted its position in shares of Roku by 3.7% in the first quarter. HB Wealth Management LLC now owns 3,447 shares of the company’s stock valued at $326,000 after acquiring an additional 122 shares in the last quarter. Finally, Quarry LP boosted its stake in shares of Roku by 21.7% during the fourth quarter. Quarry LP now owns 689 shares of the company’s stock valued at $75,000 after acquiring an additional 123 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Morgan Stanley increased their price objective on Roku from $150.00 to $170.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Wolfe Research cut shares of Roku from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, June 16th. Pivotal Research reiterated a “buy” rating and issued a $160.00 price target (up from $140.00) on shares of Roku in a report on Friday, May 1st. Susquehanna cut shares of Roku from a “positive” rating to a “neutral” rating and set a $160.00 price objective for the company. in a research note on Tuesday, June 16th. Finally, Evercore downgraded shares of Roku from a “strong-buy” rating to a “hold” rating in a report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $156.17.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Unusually heavy call-option activity suggests bullish short-term positioning: traders purchased 15,532 Roku call options, about 46% above typical call volume. However, options activity is speculative and does not guarantee sustained buying.
• Positive Sentiment: Zacks upgraded Roku from “Hold” to “Strong Buy,” adding to momentum following solid earnings and favorable estimate revisions. Zacks upgrade
• Positive Sentiment: Analysts highlighted Roku’s growing connected-TV advertising business, while recent earnings showed revenue growth of 21.9% year over year and earnings substantially above consensus. Roku advertising business growth
• Positive Sentiment: Roku was included in lists of momentum and discretionary stocks benefiting from easing inflation and oil prices, which could support consumer spending and advertising budgets. Discretionary stock recommendation
• Positive Sentiment: The addition of six free live-TV channels may improve Roku’s content offering, engagement and advertising inventory. New Roku live-TV channels
• Neutral Sentiment: Product coverage of an affordable Aurzen Roku smart projector and Roku’s “Gamechangers” programming increases brand visibility, but the direct effect on revenue is unclear. Roku smart projector
• Negative Sentiment: Some commentary argues that Roku’s position as an affordable streaming platform is weakening, raising concerns about competition, consumer value and long-term growth. Roku platform outlook
• Negative Sentiment: Criticism of Roku’s 24/7 AI-generated-content channel could damage perceptions of content quality and the brand, even if the channel creates inexpensive programming and advertising inventory. Roku AI content channel criticism
• Negative Sentiment: A bearish analysis recommends selling alongside insiders and cites debt, execution risks and uncertainty surrounding potential Fox-related synergies. Bearish Roku analysis

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.