Roku (NASDAQ:ROKU) Shares Down 1.7% on Insider Selling

Key Points

• Roku shares fell by 1.7% after CFO Dan Jedda sold 3,000 shares at an average price of $89.07, resulting in a 3.94% decrease in his holdings.
• Despite the decline, several analysts remain optimistic, with price targets raised by firms like Wells Fargo and JMP Securities, indicating a potential for growth.
• Roku's recent earnings report showed a positive performance, with a 14.7% increase in revenue year-over-year, surpassing analysts' expectations.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares were down 1.7% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $86.60 and last traded at $87.28. Approximately 760,401 shares traded hands during trading, a decline of 81% from the average daily volume of 3,991,011 shares. The stock had previously closed at $88.80.

Specifically, CFO Dan Jedda sold 3,000 shares of the company's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $89.07, for a total value of $267,210.00. Following the sale, the chief financial officer owned 73,132 shares in the company, valued at $6,513,867.24. This represents a 3.94% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on ROKU shares. JMP Securities upped their target price on shares of Roku from $95.00 to $110.00 and gave the stock a "market outperform" rating in a report on Monday, July 21st. Wells Fargo & Company increased their price objective on shares of Roku from $100.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Piper Sandler increased their price objective on shares of Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a research note on Thursday, July 10th. Citigroup reiterated a "neutral" rating and issued a $84.00 price objective (up previously from $68.00) on shares of Roku in a research note on Wednesday, June 18th. Finally, Bank of America increased their price objective on shares of Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $98.96.

Roku Trading Down 0.8%

The stock's 50-day moving average price is $86.62 and its two-hundred day moving average price is $77.45. The stock has a market capitalization of $12.98 billion, a P/E ratio of -209.81, a P/E/G ratio of 12.92 and a beta of 2.05.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ROKU. Raymond James Financial Inc. bought a new position in Roku in the 4th quarter worth approximately $2,950,000. Guggenheim Capital LLC boosted its holdings in Roku by 108.1% in the 4th quarter. Guggenheim Capital LLC now owns 14,475 shares of the company's stock worth $1,076,000 after buying an additional 7,518 shares during the period. BI Asset Management Fondsmaeglerselskab A S boosted its holdings in Roku by 278.0% in the 4th quarter. BI Asset Management Fondsmaeglerselskab A S now owns 28,041 shares of the company's stock worth $2,085,000 after buying an additional 20,623 shares during the period. Stifel Financial Corp boosted its holdings in Roku by 6.4% in the 4th quarter. Stifel Financial Corp now owns 27,048 shares of the company's stock worth $2,011,000 after buying an additional 1,632 shares during the period. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Roku by 7.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 85,071 shares of the company's stock worth $6,325,000 after buying an additional 5,809 shares during the period. 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.

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