Roku (NASDAQ:ROKU) Shares Down 1.9% on Insider Selling

Key Points

• Roku's shares fell 1.9% after insider Charles Collier sold 15,404 shares at an average price of $103.31, significantly reducing his ownership by 98.72%.
• Despite the insider selling, several analysts have raised their price targets for Roku, with Wells Fargo boosting their target from $100 to $113 while maintaining an "overweight" rating.
• Roku reported a 14.7% year-over-year revenue increase to $1.11 billion for the last quarter, exceeding consensus estimates despite a negative net margin.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price dropped 1.9% on Wednesday after an insider sold shares in the company. The stock traded as low as $98.68 and last traded at $99.93. Approximately 2,358,346 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 3,864,702 shares. The stock had previously closed at $101.83.

Specifically, insider Charles Collier sold 15,404 shares of the firm's stock in a transaction on Monday, October 6th. The shares were sold at an average price of $103.31, for a total transaction of $1,591,387.24. Following the completion of the transaction, the insider directly owned 200 shares of the company's stock, valued at $20,662. This trade represents a 98.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charles Collier sold 112,961 shares of the firm's stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $105.00, for a total transaction of $11,860,905.00. Following the transaction, the insider directly owned 200 shares of the company's stock, valued at approximately $21,000. This represents a 99.82% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on ROKU shares. UBS Group raised their price target on shares of Roku from $72.00 to $95.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Piper Sandler lifted their target price on Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a research note on Thursday, July 10th. Wells Fargo & Company lifted their target price on Roku from $100.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Rosenblatt Securities lifted their target price on Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Finally, Citigroup lifted their target price on Roku from $85.00 to $100.00 and gave the company a "neutral" rating in a research note on Thursday, September 18th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Trading Down 1.9%

The company has a market capitalization of $14.72 billion, a P/E ratio of -237.93, a P/E/G ratio of 14.68 and a beta of 2.13. The business's 50-day simple moving average is $94.44 and its 200 day simple moving average is $81.41.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The company had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.07 billion. During the same period in the previous year, the firm earned ($0.18) EPS. Roku's revenue was up 14.7% on a year-over-year basis. 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.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Berkshire Capital Holdings Inc. lifted its position in shares of Roku by 1,413,400.0% in the 1st quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock valued at $9,957,000 after acquiring an additional 141,340 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Roku during the first quarter valued at approximately $6,026,000. Atika Capital Management LLC purchased a new position in Roku during the first quarter valued at approximately $5,086,000. Lecap Asset Management Ltd. purchased a new position in Roku during the first quarter valued at approximately $511,000. Finally, Blair William & Co. IL grew its position in Roku by 14.7% during the first quarter. Blair William & Co. IL now owns 45,727 shares of the company's stock valued at $3,221,000 after purchasing an additional 5,869 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors.

Roku Company Profile

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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