Roku (NASDAQ:ROKU) Trading 6.1% Higher Following Strong Earnings

Roku, Inc. (NASDAQ:ROKU)’s stock price traded up 6.1% during mid-day trading on Friday following a stronger than expected earnings report. The stock traded as high as $116.66 and last traded at $106.13. 15,510,535 shares were traded during mid-day trading, an increase of 305% from the average session volume of 3,832,008 shares. The stock had previously closed at $100.03.

The company reported $0.16 EPS for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. The business had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.21 billion. Roku had a negative net margin of 0.61% and a negative return on equity of 1.09%. The firm’s revenue for the quarter was up 14.0% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.06) earnings per share. Roku has set its Q4 2025 guidance at EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 price objective on shares of Roku in a research report on Wednesday, October 1st. KeyCorp reaffirmed an “overweight” rating and set a $116.00 price objective on shares of Roku in a research report on Tuesday. Rosenblatt Securities upped their price objective on shares of Roku from $101.00 to $106.00 and gave the company a “neutral” rating in a research report on Friday. Morgan Stanley reaffirmed an “underweight” rating on shares of Roku in a research report on Friday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Roku in a research report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $106.36.

Insider Buying and Selling

In related news, insider Charles Collier sold 112,961 shares of the stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $105.00, for a total value of $11,860,905.00. Following the completion of the transaction, the insider owned 200 shares of the company’s stock, valued at $21,000. This represents a 99.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mustafa Ozgen sold 50,527 shares of the stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $100.00, for a total transaction of $5,052,700.00. The disclosure for this sale is available in the SEC filing. Insiders sold 353,331 shares of company stock valued at $35,140,823 over the last quarter. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in Roku by 1.4% during the second quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company’s stock worth $1,114,077,000 after buying an additional 172,221 shares during the last quarter. Acadian Asset Management LLC grew its stake in Roku by 41.2% during the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after buying an additional 785,864 shares during the last quarter. Tableaux LLC bought a new stake in Roku during the second quarter worth about $1,746,000. Jacobs Levy Equity Management Inc. grew its stake in Roku by 21.9% during the first quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company’s stock worth $111,372,000 after buying an additional 284,323 shares during the last quarter. Finally, Duquesne Family Office LLC grew its stake in Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock worth $96,723,000 after buying an additional 606,900 shares during the last quarter. 86.30% of the stock is owned by institutional investors.

Roku Price Performance

The stock has a market capitalization of $15.64 billion, a P/E ratio of -530.62, a PEG ratio of 9.36 and a beta of 2.13. The company’s 50 day simple moving average is $98.02 and its two-hundred day simple moving average is $85.31.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.