Insider Selling: Roku (NASDAQ:ROKU) Insider Sells 20,538 Shares of Stock

Key Points

• Insider sale: Charles Collier sold 20,538 shares on May 4 at an average price of $124.23 for about $2.55M under a pre-arranged Rule 10b5‑1 plan, reducing his direct holding to 7,700 shares (a ~72.7% drop) after several large April sales.
• Q1 beat and analyst optimism: Roku reported Q1 EPS of $0.57 (vs. $0.34 est.) and revenue of $1.25B (up 22.4% YoY), prompting multiple price-target increases and a consensus "Moderate Buy" target of $142.17.
• Risks and market reaction: The stock fell about 1.3% to $124.44 amid mixed sentiment, with downside risks including new class-action lawsuits alleging software updates "bricked" TCL TVs.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) insider Charles Collier sold 20,538 shares of Roku stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $124.23, for a total value of $2,551,435.74. Following the completion of the sale, the insider directly owned 7,700 shares in the company, valued at $956,571. This represents a 72.73% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Charles Collier also recently made the following trade(s):

• On Friday, April 17th, Charles Collier sold 205,807 shares of Roku stock. The shares were sold at an average price of $115.00, for a total transaction of $23,667,805.00.
• On Thursday, April 16th, Charles Collier sold 3,431 shares of Roku stock. The shares were sold at an average price of $110.17, for a total transaction of $377,993.27.
• On Wednesday, April 8th, Charles Collier sold 205,821 shares of Roku stock. The stock was sold at an average price of $105.00, for a total transaction of $21,611,205.00.
• On Thursday, March 5th, Charles Collier sold 1,715 shares of Roku stock. The shares were sold at an average price of $100.00, for a total transaction of $171,500.00.
• On Tuesday, March 3rd, Charles Collier sold 1,715 shares of Roku stock. The stock was sold at an average price of $95.57, for a total value of $163,902.55.

Roku Stock Down 1.3%

Shares of Roku stock traded down $1.58 during trading on Tuesday, hitting $124.44. 2,822,132 shares of the company were exchanged, compared to its average volume of 3,312,268. Roku, Inc. has a fifty-two week low of $58.77 and a fifty-two week high of $127.90. The stock has a market capitalization of $18.35 billion, a price-to-earnings ratio of 93.57 and a beta of 2.04. The firm has a 50 day moving average price of $101.11 and a 200 day moving average price of $101.06.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.23. The firm had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a return on equity of 7.68% and a net margin of 4.06%.The company's quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.19) EPS. Analysts predict that Roku, Inc. will post 2.24 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Needham & Company LLC upped their price objective on Roku from $110.00 to $140.00 and gave the stock a "buy" rating in a report on Friday. Pivotal Research reissued a "buy" rating and issued a $160.00 price objective (up from $140.00) on shares of Roku in a research report on Friday. Robert W. Baird upped their price objective on shares of Roku from $120.00 to $130.00 and gave the company an "outperform" rating in a research report on Friday, April 17th. Arete Research set a $132.00 price objective on shares of Roku and gave the company a "buy" rating in a research report on Monday, January 5th. Finally, Wedbush upped their price objective on shares of Roku from $140.00 to $155.00 and gave the company an "outperform" rating in a research report on Friday. Twenty-one equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $142.17.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently modified their holdings of ROKU. AGF Management Ltd. acquired a new stake in Roku during the third quarter worth about $15,023,000. Convergence Investment Partners LLC acquired a new stake in Roku during the third quarter worth about $2,492,000. Holocene Advisors LP raised its stake in Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock worth $165,259,000 after acquiring an additional 1,285,585 shares during the period. Campbell & CO Investment Adviser LLC raised its stake in Roku by 699.2% during the third quarter. Campbell & CO Investment Adviser LLC now owns 23,248 shares of the company's stock worth $2,328,000 after acquiring an additional 20,339 shares during the period. Finally, Wealth Enhancement Advisory Services LLC raised its stake in Roku by 138.8% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 40,057 shares of the company's stock worth $4,079,000 after acquiring an additional 23,280 shares during the period. Institutional investors and hedge funds own 86.30% of the company's stock.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q1 earnings beat — Roku reported stronger-than-expected Q1 revenue and EPS with platform revenue surging and record free cash flow, supporting the company's ad/subscription monetization thesis. ROKU Shares Rise 6% on Q1 Earnings Beat, Revenues and EPS Up Y/Y
• Positive Sentiment: Content and distribution additions — Roku added 15 new free channels to its platform, which can increase engagement, ad inventory and potential ad revenue. Roku Just Added 15 New Channels — And They’re All Free
• Positive Sentiment: New low-cost subscription (Howdy) — Roku’s Howdy $3/month service is getting coverage as a viable low-price add-on that could drive ARPU and reduce churn if adoption scales. Here’s Why Howdy, Roku’s Low-Cost Streaming Service, Is Worth Your $3/Month
• Positive Sentiment: Structural cost/market tailwind — analysis suggests Roku’s low-memory hardware footprint may benefit it amid rising memory prices, potentially protecting margins vs. peers. How ROKU Stock Could Be One of the Biggest Winners of Sky-High Memory Prices
• Neutral Sentiment: Analyst update — Citigroup raised its price target to $120 but kept a "neutral" rating, signaling mixed analyst sentiment and implying limited near-term upside from that house. Benzinga coverage of analyst update
• Negative Sentiment: Class-action lawsuits alleging updates “bricked” TCL TVs running Roku software — multiple outlets report a new suit accusing Roku (with TCL) of shipping updates that rendered devices unusable; litigation and reputational risk could pressure the stock and lead to legal costs or remedial expenses. TCL and Roku sued for allegedly bricking TVs with updates Roku and TCL are being sued for allegedly bricking smart TVs ROKU and TCL accused of bricking TVs in new class action lawsuit

About Roku

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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