Roku (NASDAQ:ROKU) Shares Down 1.5% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) fell 1.5% during trading on Thursday. The stock traded as low as $160.12 and last traded at $160.37. 5,107,305 shares traded hands during mid-day trading, an increase of 56% from the average session volume of 3,282,624 shares. The stock had previously closed at $162.77.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox completed its reported $22 billion acquisition of Roku, combining Roku’s streaming platform with Fox’s media and advertising business. Fox expects the transaction to create more opportunities to reach audiences and serve advertising partners, while also expanding the reach of its sports and news programming. Fox completes its $22B acquisition of Roku
• Neutral Sentiment: The acquisition’s completion means Roku will no longer trade on Nasdaq as of Friday. Investors should view ROKU’s immediate trading implications in light of the completed transaction, rather than solely as a bet on Roku’s future as an independent company. Fox Corp. Closes $22B Acquisition Of Roku
• Neutral Sentiment: Roku head Charlie Collier and Tubi CEO Anjali Sud are departing, with Paul Cheesbrough named CEO of Fox Digital Platforms. The leadership changes signal a reshaping of Fox’s combined digital operation, though the reports provide no details on the expected financial impact. Fox Digital Platforms leadership changes

Analyst Upgrades and Downgrades

A number of analysts have commented on ROKU shares. JPMorgan Chase & Co. initiated coverage on shares of Roku in a research note on Monday, August 24th. They issued a “neutral” rating and a $160.00 price target for the company. Weiss Ratings upgraded shares of Roku from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday. Wedbush reaffirmed a “neutral” rating and issued a $155.00 target price on shares of Roku in a report on Thursday, September 24th. Needham & Company LLC reiterated a “buy” rating on shares of Roku in a research note on Tuesday. Finally, Seaport Research Partners cut Roku from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eighteen have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $156.17.

Roku Stock Up 0.1%

The company has a market cap of $23.82 billion, a P/E ratio of 47.49 and a beta of 2.12. The stock has a 50 day moving average price of $155.33 and a two-hundred day moving average price of $128.92.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Monday, November 2nd. The company reported $1.20 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.65. Roku had a net margin of 9.34% and a return on equity of 19.19%. The business 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 company earned $0.16 EPS. The business’s revenue was up 24.1% on a year-over-year basis. Equities analysts anticipate that Roku, Inc. will post 3.28 EPS for the current year.

Insiders Place Their Bets

In other Roku news, Director Neil Hunt sold 2,000 shares of the firm’s stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $156.17, for a total transaction 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,538 shares of the stock in a transaction on Monday, October 5th. The stock was sold at an average price of $151.63, for a total value of $3,114,176.94. Following the sale, the insider directly owned 22,700 shares in the company, valued at approximately $3,442,001. This trade represents a 47.50% 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. Insiders sold a total of 88,028 shares of company stock valued at $13,645,922 in the last quarter. Company insiders own 13.45% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of large investors have recently bought and sold shares of ROKU. Arrowstreet Capital Limited Partnership raised its position in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after buying an additional 1,419,772 shares in the last quarter. HBK Investments L P acquired a new position in Roku during the second quarter valued at approximately $163,604,000. Janus Henderson Group PLC raised its position in Roku by 1,320.4% during the first quarter. Janus Henderson Group PLC now owns 834,619 shares of the company’s stock valued at $78,967,000 after purchasing an additional 775,861 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Roku during the second quarter valued at approximately $105,216,000. Finally, Alua Capital Management LP bought a new stake in Roku during the first quarter worth $44,869,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

Roku, Inc provides a streaming platform that connects viewers with television and other digital video content. Its products include streaming players and Roku-branded televisions, as well as the Roku operating system, which the company licenses to television manufacturers.

Roku also operates a platform business that supports streaming services and advertisers. Its offerings include the Roku Channel, an ad-supported streaming service, and tools for distributing content and delivering advertising to viewers.

Founded in 2002 by Anthony Wood, Roku serves customers in the United States and other markets.