Jeffrey Blackburn, a director at Roku (ROKU), recently bought 8,000 shares. This is an initial stake for the director, and came to a total cost of $511,680.
This marks the first insider buy over the past two years. Company executives have been regular and consistent sellers of shares, nearly always following the exercise of stock options. The largest sales have come from the company CEO, who exercised over $140 million in shares last year.
Overall, Roku insiders own 0.7 percent of shares.
The TV streaming platform has traded flat over the past year, against a 30 percent rise in the S&P 500 index.
Roku lost money last year, but revenues did rise by 13 percent.
Plus, Roku has over $2 billion in cash on the balance sheet, which can allow it to continue to operate without having to issue shares or increase debt.
Action to take: Shares are down significantly from their 2021 highs, and look ready to make a long-term trend higher after forming a base.
Long-term investors may like shares now, but if the downtrend resumes, look to get out of shares.
For traders, the September $80 calls, last going for about $6.75, could see mid-double-digit returns on a push higher in the coming months. Traders should look to take quick profits on any jump higher in shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.