Roku (NASDAQ:ROKU) Issues Earnings Results

Roku (NASDAQ:ROKU) issued its earnings results on Thursday. The company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.64) by $0.29, Briefing.com reports. Roku had a negative net margin of 20.36% and a negative return on equity of 29.21%. The firm had revenue of $881.50 million for the quarter, compared to analyst estimates of $843.54 million. During the same quarter last year, the business posted ($1.38) earnings per share. The company’s quarterly revenue was up 19.0% on a year-over-year basis. Roku updated its Q2 2024 guidance to EPS.

Roku Trading Down 10.3 %

Shares of ROKU traded down $6.46 on Friday, reaching $56.35. The company’s stock had a trading volume of 18,005,094 shares, compared to its average volume of 5,809,332. Roku has a twelve month low of $51.62 and a twelve month high of $108.84. The stock has a market capitalization of $8.09 billion, a PE ratio of -11.26 and a beta of 1.66. The firm has a fifty day moving average of $63.11 and a 200-day moving average of $78.59.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Stephens restated an “overweight” rating and issued a $105.00 target price on shares of Roku in a research report on Friday, February 16th. Pivotal Research cut their target price on shares of Roku from $85.00 to $75.00 and set a “hold” rating on the stock in a research report on Friday, February 16th. Piper Sandler reiterated a “neutral” rating and set a $65.00 price target (down previously from $81.00) on shares of Roku in a report on Friday. Wells Fargo & Company lifted their price target on shares of Roku from $45.00 to $52.00 and gave the stock an “underweight” rating in a report on Friday. Finally, Susquehanna lifted their price target on shares of Roku from $100.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, February 16th. Five investment analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $83.90.

Insider Buying and Selling

In other Roku news, Director Jeffrey M. Blackburn bought 8,000 shares of the stock in a transaction that occurred on Wednesday, March 13th. The shares were bought at an average price of $63.96 per share, for a total transaction of $511,680.00. Following the acquisition, the director now directly owns 8,000 shares of the company’s stock, valued at approximately $511,680. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, Director Jeffrey M. Blackburn acquired 8,000 shares of Roku stock in a transaction on Wednesday, March 13th. The stock was acquired at an average cost of $63.96 per share, with a total value of $511,680.00. Following the transaction, the director now owns 8,000 shares of the company’s stock, valued at approximately $511,680. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the completion of the sale, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The disclosure for this sale can be found here. Insiders have sold 54,545 shares of company stock worth $4,364,035 in the last quarter. Insiders own 13.63% of the company’s stock.

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.