Roku (NASDAQ:ROKU) Shares Down 1.5% - Time to Sell?

Key Points

• Roku's stock price decreased by 1.5%, trading at $95.10 after reaching a low of $92.76, with a significant drop in trading volume.
• Wall Street analysts have mixed views, with two rating the stock as a Strong Buy and the average price target set at $98.96, despite the recent decline.
• Insider transactions revealed substantial sales, with Charles Collier selling over 10,000 shares, reducing his ownership by 98.09%.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price traded down 1.5% on Tuesday . The stock traded as low as $92.76 and last traded at $95.10. 534,862 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 3,943,424 shares. The stock had previously closed at $96.56.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ROKU. Rosenblatt Securities raised their price target on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. UBS Group raised their price target on Roku from $72.00 to $95.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Citigroup reissued an "outperform" rating on shares of Roku in a research report on Monday, August 25th. Bank of America lifted their target price on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, July 3rd. Finally, Guggenheim lifted their target price on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Two investment 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 given a Sell rating to the company. Based on data from MarketBeat.com, Roku currently has an average rating of "Moderate Buy" and an average price target of $98.96.

Roku Trading Down 1.1%

The business's 50 day moving average price is $89.23 and its 200-day moving average price is $78.03. The company has a market cap of $14.07 billion, a price-to-earnings ratio of -227.33, a PEG ratio of 13.52 and a beta of 2.05.

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

Insider Buying and Selling

In related news, insider Charles Collier sold 10,269 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $95.00, for a total value of $975,555.00. Following the sale, the insider owned 200 shares in the company, valued at approximately $19,000. This trade represents a 98.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 3,360 shares of Roku stock in a transaction dated Monday, August 4th. The stock was 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 owned 5,195 shares in the company, valued at approximately $441,834.75. This represents a 39.28% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 324,873 shares of company stock valued at $29,745,042. 13.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Several large investors have recently made changes to their positions in ROKU. Garde Capital Inc. purchased a new position in Roku in the 1st quarter worth approximately $25,000. Banque Transatlantique SA purchased a new stake in Roku during the 1st quarter valued at $28,000. Beaird Harris Wealth Management LLC purchased a new stake in Roku during the 1st quarter valued at $30,000. Golden State Wealth Management LLC raised its stake in Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after buying an additional 247 shares during the last quarter. Finally, Princeton Global Asset Management LLC purchased a new stake in shares of Roku in the 1st quarter worth $35,000. 86.30% of the stock is currently owned by hedge funds and other 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.