Roku (NASDAQ:ROKU) Shares Gap Down After Insider Selling

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price gapped down prior to trading on Thursday following insider selling activity. The stock had previously closed at $84.78, but opened at $81.76. Roku shares last traded at $85.36, with a volume of 1,148,318 shares changing hands.

Specifically, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Monday, February 10th. The shares were sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,333,486.34. This represents a 48.51 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.

Analyst Ratings Changes

ROKU has been the topic of a number of research analyst reports. Moffett Nathanson cut shares of Roku from a "neutral" rating to a "sell" rating and set a $55.00 target price on the stock. in a report on Friday, January 10th. Bank of America increased their target price on shares of Roku from $90.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday. Robert W. Baird upgraded shares of Roku from a "neutral" rating to an "outperform" rating and raised their target price for the company from $70.00 to $90.00 in a research report on Monday, November 18th. Piper Sandler lifted their target price on shares of Roku from $60.00 to $75.00 and gave the stock a "neutral" rating in a research note on Thursday, October 31st. Finally, UBS Group lifted their price target on shares of Roku from $73.00 to $90.00 and gave the company a "neutral" rating in a research note on Friday. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating, fifteen have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, Roku has an average rating of "Moderate Buy" and an average price target of $93.18.

Roku Price Performance

The company's 50 day moving average is $80.56 and its 200-day moving average is $73.76.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.20 billion for the quarter, compared to the consensus estimate of $1.15 billion. On average, analysts anticipate that Roku, Inc. will post -1.09 earnings per share for the current year.

Institutional Trading of Roku

A number of institutional investors have recently made changes to their positions in the stock. Itau Unibanco Holding S.A. raised its stake in Roku by 95.5% during the 4th quarter. Itau Unibanco Holding S.A. now owns 569 shares of the company's stock worth $42,000 after acquiring an additional 278 shares during the period. Comerica Bank raised its holdings in shares of Roku by 19.3% in the fourth quarter. Comerica Bank now owns 291,855 shares of the company's stock valued at $21,696,000 after acquiring an additional 47,233 shares in the last quarter. AQR Capital Management LLC lifted its stake in Roku by 55.9% in the fourth quarter. AQR Capital Management LLC now owns 95,022 shares of the company's stock worth $7,064,000 after acquiring an additional 34,073 shares during the period. Lido Advisors LLC lifted its position in shares of Roku by 108.1% during the fourth quarter. Lido Advisors LLC now owns 63,742 shares of the company's stock valued at $4,739,000 after buying an additional 33,110 shares during the last quarter. Finally, Northern Trust Corp raised its position in shares of Roku by 25.4% in the 4th quarter. Northern Trust Corp now owns 712,836 shares of the company's stock valued at $52,992,000 after purchasing an additional 144,479 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

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.