Roku (NASDAQ:ROKU) Shares Down 5.3% - What's Next?

Key Points

• Roku's stock dropped 5.3% to $92.02 during mid-day trading following a previous close of $97.14, with over 3.9 million shares traded.
• Multiple analysts have raised their price targets for Roku, with Bank of America increasing its target from $100.00 to $110.00 and maintaining a "buy" rating.
• Roku reported a revenue increase of 14.7% year-over-year to $1.11 billion and beat earnings expectations, with an EPS of $0.07 compared to a forecast of ($0.16).

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price dropped 5.3% during mid-day trading on Friday . The stock traded as low as $91.69 and last traded at $92.02. Approximately 3,910,947 shares were traded during trading, an increase of 1% from the average daily volume of 3,862,721 shares. The stock had previously closed at $97.14.

Analyst Upgrades and Downgrades

ROKU has been the subject of several research analyst reports. Bank of America lifted their price objective on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, July 3rd. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Loop Capital raised Roku from a "hold" rating to a "buy" rating and lifted their price objective for the company from $80.00 to $100.00 in a research note on Tuesday, June 17th. Guggenheim lifted their price objective on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Rosenblatt Securities lifted their price objective on Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $101.33.

Roku Trading Down 5.3%

The company has a market cap of $13.56 billion, a PE ratio of -219.10, a P/E/G ratio of 13.99 and a beta of 2.13. The business has a fifty day moving average of $94.66 and a 200-day moving average of $81.65.

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 analysts' consensus estimates 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 company had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.07 billion. During the same quarter in the previous year, the business earned ($0.18) EPS. Roku's 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. As a group, research analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $100.00, for a total value of $2,500,000.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 3,000 shares of the business's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $94.52, for a total value of $283,560.00. Following the completion of the sale, the chief financial officer directly owned 83,420 shares in the company, valued at approximately $7,884,858.40. This represents a 3.47% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 518,890 shares of company stock worth $50,737,151. Insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Garde Capital Inc. bought a new position in Roku in the 1st quarter valued at approximately $25,000. Banque Transatlantique SA purchased a new stake in Roku in the 1st quarter worth $28,000. Beaird Harris Wealth Management LLC purchased a new stake in Roku in the 1st quarter worth $30,000. Golden State Wealth Management LLC boosted its holdings in shares of 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 purchasing an additional 247 shares during the last quarter. Finally, First PREMIER Bank bought a new position in shares of Roku during the 1st quarter valued at about $35,000. 86.30% of the stock is 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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