Roku (NASDAQ:ROKU) Announces Quarterly Earnings Results

Roku (NASDAQ:ROKU) announced its quarterly earnings data on Wednesday. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.35) by $0.29, Briefing.com reports. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the previous year, the company posted ($2.33) earnings per share. The business’s revenue was up 16.5% on a year-over-year basis. Roku updated its Q4 2024 guidance to EPS.

Roku Price Performance

ROKU stock traded down $16.66 during midday trading on Thursday, hitting $60.85. The stock had a trading volume of 11,359,793 shares, compared to its average volume of 4,373,778. Roku has a 52-week low of $48.33 and a 52-week high of $108.84. The firm has a market cap of $8.77 billion, a price-to-earnings ratio of -15.37 and a beta of 2.08. The business has a 50-day moving average of $73.24 and a two-hundred day moving average of $63.66.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the sale, the chief financial officer now directly owns 53,267 shares of the company’s stock, valued at approximately $4,061,608.75. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In other news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the sale, the chief financial officer now directly owns 53,267 shares of the company’s stock, valued at approximately $4,061,608.75. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total value of $1,930,000.00. Following the completion of the sale, the chief executive officer now directly owns 5,020 shares in the company, valued at approximately $387,544. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 69,566 shares of company stock valued at $5,254,000. Insiders own 13.98% of the company’s stock.

Analyst Ratings Changes

Several analysts have weighed in on ROKU shares. Macquarie reiterated an “outperform” rating and issued a $90.00 price objective on shares of Roku in a research report on Thursday. Guggenheim upgraded Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a research report on Friday, August 23rd. Citigroup boosted their price objective on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research report on Wednesday, September 25th. Morgan Stanley boosted their target price on Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday. Finally, Wedbush boosted their target price on Roku from $75.00 to $85.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have assigned a buy rating to the company. According to data from MarketBeat.com, Roku currently has an average rating of “Hold” and an average target price of $83.80.

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.