Mustafa Ozgen Sells 3,410 Shares of Roku (NASDAQ:ROKU) Stock

Roku, Inc. (NASDAQ:ROKU) insider Mustafa Ozgen sold 3,410 shares of Roku stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $530,732.40. Following the completion of the sale, the insider owned 25,569 shares in the company, valued at approximately $3,979,559.16. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Mustafa Ozgen also recently made the following trade(s):

• On Friday, June 12th, Mustafa Ozgen sold 10,194 shares of Roku stock. The stock was sold at an average price of $144.00, for a total transaction of $1,467,936.00.

Roku Trading Down 1.7%

Shares of ROKU opened at $155.59 on Friday. The firm’s 50-day moving average price is $148.57 and its 200-day moving average price is $124.70. The firm has a market capitalization of $23.09 billion, a price-to-earnings ratio of 66.49 and a beta of 2.05. Roku, Inc. has a 1-year low of $78.53 and a 1-year high of $159.89.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the company earned $0.07 earnings per share. Roku’s quarterly revenue was up 21.9% on a year-over-year basis. On average, research analysts forecast that Roku, Inc. will post 2.85 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on ROKU shares. Citizens Jmp lowered Roku from a “market outperform” rating to a “hold” rating in a research report on Tuesday, June 16th. William Blair lowered Roku from an “outperform” rating to a “market perform” rating in a research report on Monday, June 15th. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 11th. Piper Sandler downgraded shares of Roku from an “overweight” rating to a “neutral” rating and upped their target price for the stock from $148.00 to $160.00 in a research report on Tuesday, June 16th. Finally, Needham & Company LLC reiterated a “buy” rating on shares of Roku in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $156.17.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Improving earnings outlook: Zacks assigned Roku a No. 1 “Strong Buy” ranking, citing upward EPS revisions. The rating follows Roku’s latest quarterly results, which exceeded consensus estimates for both earnings and revenue, with revenue rising 21.9% year over year. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
• Positive Sentiment: Short-term technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving near-term trading momentum and investor support. Roku Just Overtook the 20-Day Moving Average
• Positive Sentiment: Premium hardware expansion: Roku’s Pro Series OLED televisions, starting at $999, could improve its position in higher-end TV hardware and provide additional opportunities to monetize its platform. Roku’s $999 OLED Could Change How TV Makers Make Money
• Neutral Sentiment: Platform activity: Pluto TV launched a major update on Roku TVs and players, while the Roku Streaming Stick Plus returned to its prior Amazon price. These developments may support engagement and device demand, but their direct impact on near-term revenue is unclear. Pluto TV Rolls Out an Update on Roku Devices
• Neutral Sentiment: Consumer support coverage: Articles describing simple Roku troubleshooting steps and retail discounts for Roku TVs may help customer experience and product sales, but are unlikely to materially affect valuation. Common Roku Problems
• Negative Sentiment: Concentrated insider selling: Executives and directors sold a combined 20,846 shares worth roughly $3.25 million. The transactions were made under pre-arranged Rule 10b5-1 plans, and most covered tax withholding on vested equity awards, reducing the bearish significance. Still, the volume of selling may weigh on sentiment, particularly with ROKU near its annual high. Roku Insider Selling

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently modified their holdings of the stock. Corient Private Wealth LP boosted its stake in Roku by 58.7% in the 2nd quarter. Corient Private Wealth LP now owns 133,101 shares of the company’s stock worth $18,387,000 after purchasing an additional 49,233 shares in the last quarter. Absolute Gestao de Investimentos Ltda. purchased a new position in Roku in the second quarter worth about $8,427,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Roku in the second quarter worth approximately $4,474,000. California State Teachers Retirement System lifted its stake in shares of Roku by 13,741.7% in the second quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company’s stock worth $2,888,886,000 after buying an additional 20,761,653 shares in the last quarter. Finally, Readystate Asset Management LP purchased a new stake in shares of Roku during the second quarter valued at approximately $22,373,000. 86.30% of the stock is currently owned by institutional investors.

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.