Roku (NASDAQ:ROKU) Shares Down 1% - Time to Sell?

Key Points

• Roku's shares fell by 1% during trading, with a significant drop in volume, down 59% compared to its average daily trading.
• Analyst ratings are largely positive, with 19 analysts giving a Buy rating and a consensus target price of $100.36.
• Insider selling has been notable, with CEO Anthony J. Wood reducing his stake by 67.65%, indicating potential concerns among executives.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares were down 1% during trading on Tuesday . The company traded as low as $97.45 and last traded at $98.37. Approximately 1,606,524 shares traded hands during trading, a decline of 59% from the average daily volume of 3,937,128 shares. The stock had previously closed at $99.39.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on ROKU shares. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Citigroup reaffirmed an "outperform" rating on shares of Roku in a research note on Monday, August 25th. Bank of America increased their price target on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, July 3rd. Guggenheim increased their price target on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Finally, Rosenblatt Securities increased their price target on Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $100.36.

Roku Trading Down 2.5%

The firm has a market capitalization of $14.28 billion, a price-to-earnings ratio of -231.21, a price-to-earnings-growth ratio of 13.33 and a beta of 2.05. The company has a fifty day moving average price of $90.38 and a 200-day moving average price of $78.15.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.23. The business had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The firm's revenue was up 14.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $89.64, for a total value of $2,241,000.00. Following the transaction, the chief executive officer directly owned 11,953 shares of the company's stock, valued at approximately $1,071,466.92. This trade represents a 67.65% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Matthew C. Banks sold 3,360 shares of the firm's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $85.05, for a total value of $285,768.00. Following the completion of the transaction, the chief accounting officer directly owned 5,195 shares in the company, valued at $441,834.75. The trade was a 39.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 318,588 shares of company stock valued at $29,753,228 over the last 90 days. 13.98% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ROKU. Tableaux LLC bought a new position in Roku in the 2nd quarter worth approximately $1,746,000. Acadian Asset Management LLC increased its position in Roku by 456.7% in the 1st quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock worth $134,222,000 after buying an additional 1,563,449 shares during the period. Two Sigma Investments LP increased its position in Roku by 149.8% in the 4th quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock worth $90,017,000 after buying an additional 726,077 shares during the period. Duquesne Family Office LLC increased its position in Roku by 123.0% in the 2nd 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 period. Finally, Tremblant Capital Group bought a new position in Roku in the 4th quarter worth approximately $43,220,000. 86.30% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.