Roku (NASDAQ:ROKU) Director Neil Hunt Sells 2,000 Shares of Stock

Roku, Inc. (NASDAQ:ROKU) Director Neil Hunt sold 2,000 shares of the stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $156.17, for a total value of $312,340.00. Following the transaction, the director owned 9,629 shares in the company, valued at $1,503,760.93. This trade represents a 17.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Roku Trading Up 3.1%

Shares of NASDAQ:ROKU opened at $160.36 on Wednesday. The stock’s 50-day moving average price is $155.15 and its two-hundred day moving average price is $128.06. Roku, Inc. has a 12-month low of $78.53 and a 12-month high of $161.26. The firm has a market cap of $23.80 billion, a price-to-earnings ratio of 47.44 and a beta of 2.12.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Monday, November 2nd. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $0.55 by $0.65. Roku had a return on equity of 19.19% and a net margin of 9.34%. The company had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same quarter in the previous year, the business earned $0.16 EPS. The firm’s revenue was up 24.1% on a year-over-year basis. As a group, research analysts forecast that Roku, Inc. will post 2.97 earnings per share for the current fiscal year.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported third-quarter revenue of $1.50 billion, up 24.1% year over year and above analyst expectations of $1.41 billion. EPS of $1.20 also exceeded the $0.55 consensus, while net income reached $183 million. Advertising revenue rose 23%, helping drive the profit improvement. Roku earnings report
• Positive Sentiment: Fox reportedly received all foreign regulatory approvals for its proposed acquisition of Roku, helping narrow the deal spread. The transaction still faces remaining steps before closing. Fox-Roku regulatory update
• Neutral Sentiment: Executives’ share sales may attract attention, but both the director and chief accounting officer sold shares under pre-arranged Rule 10b5-1 plans, which limits the signal these transactions provide about their view of the stock. Director sale filing Chief accounting officer sale filing
• Negative Sentiment: Rosenblatt Securities downgraded Roku from “buy” to “neutral,” setting a $160 price target—close to the recent trading level and suggesting limited near-term upside in the firm’s view. Analyst downgrade
• Negative Sentiment: Roku said it expects heavier costs in the fourth quarter, which could temper the impact of the strong results. Earnings cost commentary

Hedge Funds Weigh In On Roku

A number of large investors have recently modified their holdings of ROKU. 55 North Private Wealth LLC boosted its position in Roku by 4.8% during the 3rd quarter. 55 North Private Wealth LLC now owns 1,592 shares of the company’s stock worth $242,000 after purchasing an additional 73 shares during the period. CX Institutional increased its holdings in Roku by 44.1% in the 3rd quarter. CX Institutional now owns 281 shares of the company’s stock valued at $43,000 after purchasing an additional 86 shares in the last quarter. Raleigh Capital Management Inc. increased its holdings in Roku by 6.5% in the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock valued at $144,000 after purchasing an additional 93 shares in the last quarter. Apella Capital LLC raised its position in Roku by 1.4% in the third quarter. Apella Capital LLC now owns 6,752 shares of the company’s stock valued at $1,031,000 after purchasing an additional 93 shares during the period. Finally, Quantum Portfolio Management LLC raised its position in 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 purchasing an additional 105 shares during the period. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ROKU. JPMorgan Chase & Co. began coverage on shares of Roku in a research report on Monday, August 24th. They set a “neutral” rating and a $160.00 price target for the company. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. Weiss Ratings upgraded shares of Roku from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Fox Advisors set a $157.00 price objective on shares of Roku in a research note on Friday, July 17th. Finally, Wedbush restated a “neutral” rating and set a $155.00 price objective on shares of Roku in a report on Thursday, September 24th. One equities research 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’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $156.17.

About Roku

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.